"The House Always Wins"
Today, we’re borrowing a well-known saying from the gambling industry, "the house always wins," and applying it to Michigan’s home, auto, and business insurance companies. Why? Because right now, the system is fundamentally rigged against policyholders and overwhelmingly favors billion-dollar insurance companies.
Many insurers operate on a business model called “delay, deny, and defend.” We call it insurance bad faith. They systematically refuse to pay legitimate claims without a reasonable basis, forcing everyday consumers and small business owners into costly, protracted legal battles just to get the benefits they’ve already paid for.
Many consumers simply cannot afford to take insurance companies to court. Even for those who do win, the money insurance companies make from holding back benefits for other consumers counters any existing financial accountability. In other words, insurance companies know they make money by holding money.
Insurance executives are slamming Americans with steep rate hikes, often blaming their own policyholders for taking them to court when they refuse to pay claims. Meanwhile, underwriting profits for property and casualty insurers skyrocketed to $35.3 billion in the first nine months of 2025, according to industry sources, following historically high profits in 2024 and 2023.
Not surprisingly, Americans are expressing growing frustration and distrust toward the insurance industry. Yet, Michigan is currently one of only seven states in the nation that do not allow injured parties to hold their insurance companies legally accountable for bad-faith conduct.
Why should you care?
You pay your premiums expecting peace of mind and protection when disaster strikes. But instead of honoring their promises, insurance companies pursue unfair corporate tactics that devastate Michigan consumers. We're talking about real, severe consequences that affect your community: small businesses forced to shutter because of delayed claims and families having their auto or homeowner claims systematically denied simply because insurers know most people will give up rather than fight an army of corporate lawyers.
The silver lining?
You are now part of the Protect MI Families network, and we have a way to “turn the tables” on the predatory practices of insurance companies in Michigan. We are working with a coalition of consumer protection organizations and safety advocates to pass the Insurance Policyholder Bill of Rights.
This crucial legislation – Senate Bill 245 – is now before the Michigan Legislature. It will force insurance companies operating in Michigan to uphold the terms of their policies in good faith, while providing policyholders like you with legal recourse when they act in bad faith. The bill also establishes your absolute right to have claims investigated properly, requires prompt payment of valid claims on home, auto, life, and business policies, and ensures you are protected from loss based on your needs, not on an insurance company's profit margins.
Together, we can put an end to the culture of corporate greed that has become the norm with too many insurance companies and demand accountability for their record of exploitation. Keep an eye out for our upcoming action alerts on how you can help us pass a Michigan Insurance Policyholder Bill of Rights. In the meantime, click here to contact your legislator and ask them to support this crucial piece of legislation!
