Insurance industry makes millions from delays

First publishedAug 12, 13:00 UTC

Last updatedAug 12, 15:22 UTC · 7m ago

113:00–13:04 UTC1 outletChicago Sun-Times

13:0013:3514:1114:4615:22

Chicago Sun-Times6Insurance industry makes millions from delaysAug 12, 13:00 UTCOpen ↗

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<h3>Good morning, Chicago. ✶</h3><p>🔎 <b>Below</b>:&nbsp;How much money are insurance companies making by delaying paying out claims? A recent analysis shows it's in the millions.&nbsp;</p><p>🗞️ <b>Plus</b>: Another round of tornadoes hit the Chicago area, the White Sox' Pope Leo night and more news you need to know.</p><p>📝&nbsp;<b>Keeping score</b>:&nbsp;<a class="Link" href="https://newsletters.suntimes.com/t/t-l-ydlrhhky-l-j/" target="_blank" >The Cubs beat the Nationals</a>, 8-6;&nbsp;<a class="Link" href="https://newsletters.suntimes.com/t/t-l-ydlrhhky-l-t/" target="_blank" >the White Sox fell to the Reds</a>, 5-4.</p><p>📧 <b>Subscribe</b>: <a class="Link" href="https://newsletter-hub.suntimes.com/" target="_blank" ><i>Get our morning newsletter delivered to your inbox weekday mornings.</i></a></p><p>⏱️:&nbsp;<i>A 7-minute read</i></p><hr><p></p><h4>TODAY’S WEATHER 🌧️</h4><p>Afternoon storms with a high near 83.</p><hr><p></p><h4><a class="Link" href="https://newsletters.suntimes.com/t/t-l-ydlrhhky-l-i/" target="_blank" >CHICAGO JIGSAW PUZZLE</a> 🧩</h4><div class="Enhancement" data-align-floatLeft> <div class="Enhancement-item" data-crop=""> <figure class="Figure"><a class="AnchorLink" id="image-dd0000" name="image-dd0000"></a> <picture data-crop="medium"> <source type="image/webp" width="490" height="275" data-srcset="https://cst.brightspotcdn.com/dims4/default/eecacde/2147483647/strip/true/crop/256x144+0+131/resize/490x275!/format/webp/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2Fb9%2F4d%2F51222f534a708c573c5f7bced450%2Fst17102892c-0042-99014506db01453c.jpg 1x,https://cst.brightspotcdn.com/dims4/default/c1d3844/2147483647/strip/true/crop/256x144+0+131/resize/980x550!/format/webp/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2Fb9%2F4d%2F51222f534a708c573c5f7bced450%2Fst17102892c-0042-99014506db01453c.jpg 2x" data-lazy-load="true" srcset="data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSIyNzVweCIgd2lkdGg9IjQ5MHB4Ij48L3N2Zz4=" /> <source width="490" height="275" data-srcset="https://cst.brightspotcdn.com/dims4/default/fec0c37/2147483647/strip/true/crop/256x144+0+131/resize/490x275!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2Fb9%2F4d%2F51222f534a708c573c5f7bced450%2Fst17102892c-0042-99014506db01453c.jpg" data-lazy-load="true" srcset="data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSIyNzVweCIgd2lkdGg9IjQ5MHB4Ij48L3N2Zz4=" /> <img class="Image" alt="st17102892C_0042-99014506db01453c.jpg" srcset="https://cst.brightspotcdn.com/dims4/default/fec0c37/2147483647/strip/true/crop/256x144+0+131/resize/490x275!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2Fb9%2F4d%2F51222f534a708c573c5f7bced450%2Fst17102892c-0042-99014506db01453c.jpg 1x,https://cst.brightspotcdn.com/dims4/default/cbc4ccf/2147483647/strip/true/crop/256x144+0+131/resize/980x550!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2Fb9%2F4d%2F51222f534a708c573c5f7bced450%2Fst17102892c-0042-99014506db01453c.jpg 2x" width="490" height="275" data-src="https://cst.brightspotcdn.com/dims4/default/fec0c37/2147483647/strip/true/crop/256x144+0+131/resize/490x275!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2Fb9%2F4d%2F51222f534a708c573c5f7bced450%2Fst17102892c-0042-99014506db01453c.jpg" data-lazy-load="true" src="data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSIyNzVweCIgd2lkdGg9IjQ5MHB4Ij48L3N2Zz4=" > </picture> </figure> </div> </div><p>Piece together history&nbsp;to reveal more about today’s photo from the Sun-Times archives.</p><p><a class="Link" href="https://newsletters.suntimes.com/t/t-l-ydlrhhky-l-h/" target="_blank" ><b>PLAY NOW</b></a></p><hr><p></p><h4>TODAY’S TOP STORY 🔎</h4><div class="Enhancement" data-align-center> <div class="Enhancement-item" data-crop=""> <figure class="Figure"><a class="AnchorLink" id="image-120000" name="image-120000"></a> <picture data-crop="medium"> <source type="image/webp" width="490" height="275" data-srcset="https://cst.brightspotcdn.com/dims4/default/b45109e/2147483647/strip/true/crop/3400x1908+0+0/resize/490x275!/format/webp/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3e%2Fdc%2Fe02dad054d259dcc4e27961fa97d%2Fwatchdelay-260811-4.jpg 1x,https://cst.brightspotcdn.com/dims4/default/36da4bf/2147483647/strip/true/crop/3400x1908+0+0/resize/980x550!/format/webp/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3e%2Fdc%2Fe02dad054d259dcc4e27961fa97d%2Fwatchdelay-260811-4.jpg 2x" data-lazy-load="true" srcset="data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSIyNzVweCIgd2lkdGg9IjQ5MHB4Ij48L3N2Zz4=" /> <source width="490" height="275" data-srcset="https://cst.brightspotcdn.com/dims4/default/dd21acb/2147483647/strip/true/crop/3400x1908+0+0/resize/490x275!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3e%2Fdc%2Fe02dad054d259dcc4e27961fa97d%2Fwatchdelay-260811-4.jpg" data-lazy-load="true" srcset="data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSIyNzVweCIgd2lkdGg9IjQ5MHB4Ij48L3N2Zz4=" /> <img class="Image" alt="Stacie Barger, of Johnsburg, poses with her new car after she was hit by a driver with nonstandard insurance." srcset="https://cst.brightspotcdn.com/dims4/default/dd21acb/2147483647/strip/true/crop/3400x1908+0+0/resize/490x275!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3e%2Fdc%2Fe02dad054d259dcc4e27961fa97d%2Fwatchdelay-260811-4.jpg 1x,https://cst.brightspotcdn.com/dims4/default/f86616a/2147483647/strip/true/crop/3400x1908+0+0/resize/980x550!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3e%2Fdc%2Fe02dad054d259dcc4e27961fa97d%2Fwatchdelay-260811-4.jpg 2x" width="490" height="275" data-src="https://cst.brightspotcdn.com/dims4/default/dd21acb/2147483647/strip/true/crop/3400x1908+0+0/resize/490x275!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3e%2Fdc%2Fe02dad054d259dcc4e27961fa97d%2Fwatchdelay-260811-4.jpg" data-lazy-load="true" src="data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSIyNzVweCIgd2lkdGg9IjQ5MHB4Ij48L3N2Zz4=" > </picture> <div class="Figure-content"><figcaption class="Figure-caption"><p>Stacie Barger has been waiting more than a year to have her auto insurance claim paid after a collision.</p></figcaption><span class="line"></span><div class="Figure-credit"><p>Mark Black/For the Sun-Times</p></div></div> </figure> </div> </div><p></p><h3><a class="Link" href="https://newsletters.suntimes.com/t/t-l-ydlrhhky-l-u/" target="_blank" >Insurance industry makes millions each day claims go unpaid, analysis shows</a></h3><p></p><h5>Reporting by <a class="Link" href="https://newsletters.suntimes.com/t/t-l-ydlrhhky-l-o/" target="_blank" >Stephanie Zimmermann</a></h5><p><b>Delay and profit</b>: A new analysis shows that delaying home insurance claims for just a day or a week can add millions of dollars in profit collectively for the insurance industry.</p><p><b>The analysis</b>: For each day of delays on home insurance claims, the industry takes in an extra $8.8 million in interest and investment income, according to an analysis by the independent financial institution rating firm Weiss Ratings for the nonprofit Consumer Federation of America, which looked at the money that home insurers take in as premiums as well as their investment income.&nbsp;</p><p><b>All insurance</b>: Across all lines of property and casualty insurance — including home, auto, business and other coverage — the industry gains a combined $52.3 million in investment income for each additional day claims are delayed, the analysis found.</p><p><a class="Link" href="https://newsletters.suntimes.com/t/t-l-ydlrhhky-l-b/" target="_blank" ><b>READ MORE</b></a></p><hr><p></p><h4>CHICAGO STORMS 🌪️</h4><div class="Enhancement" data-align-center> <div class="Enhancement-item" data-crop=""> <figure class="Figure"><a class="AnchorLink" id="image-c90000" name="image-c90000"></a> <picture data-crop="medium"> <source type="image/webp" width="490" height="275" data-srcset="https://cst.brightspotcdn.com/dims4/default/557c911/2147483647/strip/true/crop/2000x1122+0+99/resize/490x275!/format/webp/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3d%2F62%2F4d4c2d104a10bad1ba021a093d76%2Fweather-260812-5011.jpg 1x,https://cst.brightspotcdn.com/dims4/default/30d00c7/2147483647/strip/true/crop/2000x1122+0+99/resize/980x550!/format/webp/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3d%2F62%2F4d4c2d104a10bad1ba021a093d76%2Fweather-260812-5011.jpg 2x" data-lazy-load="true" srcset="data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSIyNzVweCIgd2lkdGg9IjQ5MHB4Ij48L3N2Zz4=" /> <source width="490" height="275" data-srcset="https://cst.brightspotcdn.com/dims4/default/3d839ca/2147483647/strip/true/crop/2000x1122+0+99/resize/490x275!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3d%2F62%2F4d4c2d104a10bad1ba021a093d76%2Fweather-260812-5011.jpg" data-lazy-load="true" srcset="data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSIyNzVweCIgd2lkdGg9IjQ5MHB4Ij48L3N2Zz4=" /> <img class="Image" alt="Maria Todd stands in her driveway looking at a tree that fell on her house near Flossmoor Road and Governors Highway in Flossmoor, Illinois, on Aug. 11, 2026." srcset="https://cst.brightspotcdn.com/dims4/default/3d839ca/2147483647/strip/true/crop/2000x1122+0+99/resize/490x275!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3d%2F62%2F4d4c2d104a10bad1ba021a093d76%2Fweather-260812-5011.jpg 1x,https://cst.brightspotcdn.com/dims4/default/a9d6ea5/2147483647/strip/true/crop/2000x1122+0+99/resize/980x550!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3d%2F62%2F4d4c2d104a10bad1ba021a093d76%2Fweather-260812-5011.jpg 2x" width="490" height="275" data-src="https://cst.brightspotcdn.com/dims4/default/3d839ca/2147483647/strip/true/crop/2000x1122+0+99/resize/490x275!/quality/90/?url=https%3A%2F%2Fchorus-production-cst-web.s3.us-east-1.amazonaws.com%2Fbrightspot%2F3d%2F62%2F4d4c2d104a10bad1ba021a093d76%2Fweather-260812-5011.jpg" data-lazy-load="true" src="data:image/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZlcnNpb249IjEuMSIgaGVpZ2h0PSIyNzVweCIgd2lkdGg9IjQ5MHB4Ij48L3N2Zz4=" > </picture> <div class="Figure-content"><figcaption class="Figure-caption"><p>Maria Todd stands in her driveway looking at a tree that fell on her house in Flossmoor on Tuesday.</p></figcaption><span class="line"></span><div class="Figure-credit"><p>Allen Cunningham/For the Sun-Times</p></div></div> </figure> </div> </div><p></p><h3><a class="Link" href="https://newsletters.suntimes.com/t/t-l-ydlrhhky-l-p/" target="_blank" >3 tornadoes packing winds of 86 to 110 mph hit Chicago area</a></h3><p></p><h5>Reporting by <a class="Link" href="https://newsletters.suntimes.com/t/t-l-ydlrhhky-l-x/" target="_blank" >Elijah James</a> and <a class="Link" href="https://newsletters.suntimes.com/t/t-l-ydlrhhky-l-m/" target="_blank" >Violet Miller</a></h5><p><b>Damaging storm</b>: Three tornadoes hit the Chicago area on Tuesday in a fast-moving storm with extreme winds that left a path of destruction in the south suburbs and cut power to hundreds of thousands.</p><p><b>Areas impacted</b>: The National Weather Service said surveyors confirmed the tornadoes with gusts of 86 to 110 mph: One in southern Cook County, another in eastern Will County, and the third in the Mokena area, also in Will County.

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  Insurance industry makes millions from delays

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  Chicago Sun-TimesAug 12, 13:00

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