Rising Premiums and Claim Denials Spur Calls for Federal Insurance Reform
Homeowner premiums have jumped 46% since 2020 and auto insurers now refuse payment on 45% of claims, prompting critics to demand national regulation of the insurance industry.
Jacob Hacker warned that private insurers could not fill the gap left by shrinking social safety nets, a warning now reflected in soaring homeowner premiums that have risen 46% from 2020 to 2025, far exceeding inflation and occurring even in low-risk states. Surveys indicate most homeowners blame insurers’ profit motives rather than climate change for the hikes. Auto insurers have similarly tightened payouts, refusing payment on 45% of liability and medical claims, up from about one-third a decade ago, despite a decline in accident frequency.
Industry spokespeople point to AI-generated fraud and a surge in litigation, while critics highlight higher deductibles and the lack of strong state oversight. The piece recounts historic Supreme Court rulings and the 1950 McCarren-Ferguson Act that cemented state-only regulation, and it calls for repealing that act to place insurance under federal jurisdiction.
Why it matters
Higher premiums and claim refusals strain families and reveal a regulatory gap that leaves consumers vulnerable.
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