Colorado returns $24.6 million in insurance claims to consumers
The figure is around 20% more than the previous reporting period as the Division of Insurance increases awareness around its free services
Colorado’s Division of Insurance was able to recover $26.4 million from insurance claims between July 2023 and June 2024, according to a from the agency.
This money was returned to Coloradans who submitted complaints regarding property, auto and health insurance claims to the division.
The most recent reporting period not only saw an increase in the number of complaints 鈥� 6,987, up from 5,920 鈥� but also in the amount recovered. From 2023 to 2024, the division recovered over $5 million, more than the previous year, or 20%.
Delaney Trail, a marketing and communications specialist for the division, said this growth is likely due to an increase in awareness about its programs.
“We’re continuing to work on increasing our outreach so more people know to contact us with questions and complaints,” Trail said. “We’re always working to better serve Coloradans and improve regulations to ensure that consumers are best served by their insurers. This can also lead to more complaints as there are more regulations for insurers to follow.”
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According to the report, the greatest number of complaints are related to property and casualty insurance, specifically homeowners insurance. In the most recent fiscal year, the division received 3,829 complaints around property and casualty insurance claims. The division recovered around $19.2 million from these complaints, over $10.6 million of which were related to 1,504 homeowners insurance complaints.
Trail reported that the most common complaints in this realm are related to claim handling, premium increases as well as availability and non-renewal issues alongside some other trends during this reporting period.
“After the Marshall Fire, more people needed our services and began to reach out,” Trail said. “Each year we see increases in claims around recent natural disasters and common ailments. Hail damage created many claims in the property space as people’s homes and cars were damaged by hail storms.”
The division was also able to recover over $7 million from around 1,900 complaints regarding life and health insurance. Health insurance complaints represented the vast majority of these complaints, 1,716, and resulted in over $4 million recovered.
The most common complaints for health insurance are around network adequacy, claims handling, prior approval and medical necessity as well as surprise, out-of-network or balance billing, Trail reported.
In addition to resolving complaints, the Division of Insurance’s consumer services team receives calls about insurance questions and concerns. In the most recent fiscal year, it fielded over 14,741 calls. These inquiries are used by the division to identify significant issues and places for improved regulation.
This year, it saw complaints about physicians sending blood draws and other lab work to out-of-network labs increase as well as questions around long-term care, according to the report.聽
Thirty-five percent of the 570 calls and emails that the division fielded about homeowners insurance were about affordability, availability and non-renewals of homeowners insurance. This fall, the division toured the state and hosted town halls to hear directly from communities about increasing rates and securing coverage as part of its work to address these concerns.
