Insurance Complaint Ratio /Index - Standard Reports
The standard reports provide a list of companies with five (5) or more complaints or at least one tenth of a percent (.1%) of the premium volume in a particular line of insurance. In this manner, the report looks at those companies with significant numbers of complaints but also provides information on a number of insurers and carriers writing business in Colorado.
Insurance Complaint Ratio /Index - Interactive Reports
The interactive reports provide the ability to search for specific companies and/or by policy type. All companies with any insurance premium written in Colorado or at least one complaint are included in the database, not just those listed in the standard reports. They also show how many complaints are "confirmed" - where the company was found to be in the wrong.
The Complaint Ratio and Complaint Index illustrate the number of overall complaints received by the Division of Insurance. The amount of premium written in Colorado is included to indicate how large or small the company is, and is a general indication of how many people are insured by the company.
The Complaint Ratio shows that some companies generate more complaints per $1 million of premium than other companies. The Complaint Index shows how a company compares to other companies if it has an average number of complaints for the premium it wrote, a company will get an index score of 1.0. An index higher than 1.0 indicates that a company's complaint counts are higher than average, and an index lower than 1.0 indicates that a company's complaint counts are lower (better) than average. An index of 0.0 (zero) indicates that no complaints were received for the company, which is always better than average. These measures provide helpful information to consumers interested in evaluating insurance companies.
For the purposes of both the Complaint Ratio and the Complaint Index:
- A complaint is defined as written correspondence expressing a grievance against an insurer or carrier and results in a written request for information from the company.
- "Confirmed complaints" are those in which the consumer prevailed, in whole or in part, in a complaint against the company.
- A total complaint ratio of 4.40, for example, means the company had approximately 4.40 complaints per $1 million worth of business. A total complaint index of 2.00, for example, means the company had approximately twice as many complaints as an average company for its premium written. A total complaint index of 0.50 means that the company had approximately half as many complaints as an average company for its premium written.
- Information is included by the type, or "line," of insurance, accounting for the greatest number of complaints and premiums written. Note that the Complaint Index shows an average index of 1.0 for each line of business, so that the index is an actual comparison between companies for complaints received by the Division.
- The Complaint Ratio and Complaint Index values are based on all received complaints, not on all confirmed complaints.
Premium costs, benefits offered, financial condition, and level of service should all be considered when evaluating a company. Consumers are cautioned against relying only on the Complaint Ratio or the Complaint Index. Financial condition may be found at Independent Rating Services sites such as A.M. Best, Moody's and Standard & Poor's. Please see our related links page for this information.