Last month, the U.S. Senate convened a long-overdue hearing to investigate the claims practices of major insurance companies following recent natural disasters. Led by Sen. Josh Hawley, the hearing underscored a painful reality that countless policyholders across the country already know all too well: When disaster strikes and families are at their most vulnerable, the insurance coverage they've faithfully paid into for years often falls short — right when they need it most.
In the wake of hurricanes, wildfires, and other catastrophic events, Americans expect their insurers to act as trusted partners and a source of relief — not as adversaries. Instead, they are frequently met with red tape, drawn-out disputes, and outright denials.
Testimony from both victims and industry insiders laid bare a troubling truth: These are not isolated incidents. They represent a deeply rooted, systemic failure in the way claims are handled across the industry.
To his credit, Sen. Hawley used the hearing to demand accountability from industry leaders and to amplify the voices of those left behind by broken promises. The Senate's scrutiny of major insurers like Allstate and State Farm is an important step — but it must not stop there.
The problem extends well beyond the national giants. Regional and lesser-known insurers — those that often operate under the radar — wield enormous influence over the recovery process and can be just as prone to delay and deny legitimate claims. True accountability will require a broader and more sustained effort to reform the entire system and restore trust for the people it is supposed to protect.
Take, for example, the case of Sam Zherka, who stepped into the shoes of the property owner by purchasing the claim after the original owner.
The property in question experienced catastrophic losses following a severe ice storm in Massachusetts. The storm's impact was so significant that the governor declared a state of emergency.
Zherka did what any responsible policyholder would do: He filed a claim with his insurance provider, Arch Specialty Insurance, expecting the coverage he paid for to help him recover. Instead, he was met with a grossly inadequate response: an offer of just $132,000 on damages that an independent adjuster estimated to be $17 million.
Even more troubling, the company attempted to attribute the damage to "normal wear and tear," a strategy that policyholders and industry insiders alike are increasingly recognizing as a way to avoid rightful payouts.
This is not an isolated case. In testimony before the Senate Homeland Security and Governmental Affairs Subcommittee last month, Nick Schroeder and Clifford Millikan, seasoned adjusters with Pilot Catastrophe Services, shared alarming details about their experience working with Allstate. They alleged that they were pressured to downgrade damage assessments — including reclassifying structural damage as superficial or preexisting issues — and were removed from assignments when they pushed back.
Their testimony laid bare a broader pattern in the industry: one in which adjusters are incentivized or coerced into minimizing claims in favor of the insurer's bottom line, leaving policyholders out in the cold.
Zherka's experience with Arch Specialty Insurance reflects this same disturbing trend.
Though not a household name like Allstate, Arch is emblematic of a larger issue: Claims suppression and mischaracterization aren't confined to major national carriers; they're happening at all levels, too. The common denominator is an industry culture that too often values cost containment over contract fulfillment.
Unlike many, Sam Zherka has the means and resolve to fight back. He has filed suit in federal court in the Springfield District of Massachusetts to challenge Arch's conduct.
But most policyholders aren't so fortunate. The average American doesn't have the legal resources or financial stamina to take on a powerful insurance company — especially while recovering from disaster.
That's what makes congressional oversight so essential. The Senate's recent hearings are a good start, but they must go further.
It is not enough to put executives from the industry's largest players under the spotlight. Lawmakers must also scrutinize other insurers, independent adjuster networks, and the broader ecosystem that allows these abuses to persist.
The goal should be clear: Ensure that every policyholder — regardless of who the insurer is — is treated fairly, transparently, and with dignity.
When people pay for insurance, they're not just buying policies; they're buying peace of mind. And when disaster strikes, they shouldn't have to fight the very companies they trusted to protect them.
Now is the time for real accountability and meaningful reform across the insurance industry.
Charlie Kolean has worked as a senior policy adviser for state legislators, multinational corporations, and think tanks. Mr. Kolean has been involved in politics for over a decade as an activist, candidate, political consultant, and party leader. He was a bundler on the Trump Finance Victory Committee and is a member of the American Association of Political Consultants. Read more of his reports — Here.
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