AIG Ranked Third Worst Insurance Company in America

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption

UPDATED: Jun 29, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Written By: Jeffrey JohnsonUPDATED: Jun 29, 2022Fact Checked

AIG Insurance Company was ranked the third worst insurance company in America by the American Association for Justice (AAJ). Only Allstate and Unum ranked worse than AIG, the world’s biggest insurer, who has been accused of raising premiums after catastrophes and claims handling abuses. To learn more about the report which names the ten worst insurance companies in America, click here.

AIG’s bad faith insurance practices

According to the AAJ report, AIG has been accused of bad faith insurance practices, such as:

  • Using a variety of tricks to delay claims or deny them altogether, including keeping claim payment checks locked in a safe until the claimant complained, disposing of correspondence during pizza parties and fighting mundane insurance claims in court for years unnecessarily.
  • Developing schemes to reject thousands of automobile warranty claims, in spite of the company’s claims representatives approving the claims for payment – all to save the company money.
  • Conspiring with insurance brokers to submit fake bids in commercial insurance markets so that there was an illusion of competition, when in fact, there was not. As a result, businesses and local governments were forced to pay higher insurance rates. AIG agreed to pay over $12 million to several state insurance departments for its fraudulent activity. survey: 51% of AIG customers very unsatisfied

According to customer satisfaction ratings on, 51% of AIG’s customers are not satisfied with the insurer. Here’s how survey respondents rated the insurer:

Extremely Satisfied: 19%
Very Satisfied: 10%
Somewhat Satisfied: 10%
Unsatisfied: 10%
Very Unsatisfied: 51%

Customers posted the following comments about AIG on the website:

  • “Nasty to work with! Very uncooperative!”
  • “I went through a terrible claims process. The adjustor was hard to get a hold of. They rarely called back. They took forever authorizing repairs to my car. I am insured by them, and my particular accident was the other driver’s fault, yet I felt like a criminal when talking to them. The other driver’s insurance was much more pleasant to deal with.”
  • “They can’t settle a claim [in] 14 months [time] and I [have] still not [been] paid for a hit and run on a parked car. They lied through the whole process.”
  • “Raised my rates over double when I bought a new car in 2001. No accidents or speeding tickets. Terrible customer service. Not worth giving them your money.”

If AIG has denied your valid claim or rescinded your policy, it may have acted in bad faith. Contact an attorney whose practice focuses in this area of the law. Consultations are free, without obligation and strictly confidential.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption