March 24, 2022 1 min read

Groups Urge State Insurance Departments to Investigate Racial Bias in Insurance Claim Handling

CFA TC

The Consumer Federation of America and Center for Economic Justice urged State Insurance Departments to investigate racial bias in insurance claims handling and anti-fraud efforts. In a detailed letter, the consumer advocates asked that each state respond to a short survey about their current efforts to identify and root out claims handling bias and racial discrimination at the insurance companies they regulate.

A recent New York Times investigation revealed detailed allegations of discrimination against Black policyholders at State Farm, the nation’s largest insurer. Fraud investigators at State Farm were pressured to investigate claims in Black neighborhoods and deny them because they were supposedly at higher risk for fraud.

Related Articles

CFA TC
August 07, 2026 / Blogs
Oklahoma Has a Major Homeowners Insurance Crisis. The Next Insurance Commissioner Can Help Change That
CFA TC
August 05, 2026 / Testimony & Comments
Consumer Federation of America Urges California Legislators to Oppose Harmful Auto Insurance Telematics Bill
CFA TC
July 30, 2026 / Press Releases
New Analysis: Homeowners Insurance Companies Earn Millions in Interest and Investment Income with Every Day of Claim Delay

Claim Payment Delays Are the Largest Source of Complaints to State Insurance Departments

CFA TC
July 14, 2026 / Reports
Redlined

The Persistence of Racial Inequality in the Cost of Homeowners Insurance