The NAIC collected the data through its centralized electronic Complaint Database System (CDS), through which states voluntarily report “closed” complaints. A closed complaint is a complaint that has been investigated and resolved to the satisfaction of the state or jurisdiction in which it is filed. First established in 1990, the CDS was significantly expanded in 1998 and now houses data on more than 2 million complaints.
A total of 195,669 confirmed consumer complaints on insurance companies were reported to the CDS in the 2008 calendar year. This information is based on the submission of data to the NAIC from the state insurance departments. The CDS is continually updated, as new information is received from the states on an ongoing basis. The NAIC does not collect all complaint data from all states.
Aggregate data compiled from the CDS can be accessed on the NAIC’s website through the Consumer Information Source. By accessing this program, consumers can obtain company-specific complaint ratios (the ratio of the company’s market share of complaints compared to the company’s market share of premiums for a specific policy type), as well as aggregate counts of complaints by state and by type of coverage for specific companies.
For detailed information about the top five types of complaints and the top five complained about types of insurance coverage for 2008, please go to: http://www.naic.org/Releases/2009_docs/complaints_2008.htm