Josh Hawley blasts Allstate CEO for making $26M last year — while company can’t ‘afford’ to pay out claims. Accuses insurance giant of altering reports to pad profits. Here’s his evidence

Most homeowners believe their insurance policies will protect them when disaster strikes. But that illusion shattered for Natalia Migal.

Testifying before the U.S. Senate, she recalled how Hurricane Helene ravaged her Georgia home, only for her insurer Allstate to offer a mere $46,000 for repairs, despite independent assessments putting the damage closer to $500,000.

Digging into Allstate’s recent financial statements, Senator Josh Hawley questioned the company’s decision to reward the C-suite after boosting revenue and profits while policyholders like Migal struggled to get compensated for their losses.

“CEO Tom Wilson was paid $26 million,” he said during the hearing.

“Ms.Miguel can’t get her claim paid out but Tom, whoever he is, gets $26 million. Why is his salary a priority but Ms.Miguel isn’t?”

Unfortunately, Migal’s case isn’t an outlier. As evidence from policymakers and industry insiders piles up, lawmakers are ramping up their scrutiny of the $1 trillion property insurance industry.

Denied claims, undeniable profits

It wasn’t just policyholders who testified before Congress on May 13 but also claims adjusters, industry professionals who assess damages and estimate losses. Two of these adjusters testified that they faced pressure to lower their initial estimates, which alarmed the committee.

“We’ve just heard testimony here, sworn testimony from multiple adjusters, that your company ordered them to delete or alter damage estimates to reduce payouts and to make you profits,” Hawley told Michael Fiato, Allstate executive vice-president and chief claims officer, during the hearing.

“It sounds to me like you’re running a system of institutionalized fraud.”

Fiato pushed back on this accusation by highlighting the fact that insurance companies like Allstate were handling more claims because of changing weather patterns and higher frequency of natural disasters in recent years.

However, Hawley pointed out that this added risk wasn’t being reflected in the company’s financials.

“I have to notice that your profits have never been better, they’re really quite extraordinary,” he said. “Fiscal year ’24, Allstate had $64 billion in revenue; that’s 12% above the previous year.”

This growth spurt isn’t limited to Allstate. Property and casualty insurers pulled in a record $169 billion in profit in 2024, according to AM Best — a staggering 90% jump from the year before and more than quadruple their 2022 earnings.

This windfall came even as insurers hiked premiums and lobbied for laws to limit payouts, all while insisting the industry was under financial strain, according to a report by the American Association for Justice.

With this pattern in mind, homeowners and policyholders should prepare for dealing with claim denials in the event of a natural disaster.

How to deal with denied claims

Picking up the pieces after a natural disaster is hard enough, but facing a denied insurance claim can turn a difficult situation into a financial nightmare.

To improve your chances, take the time to review your policy thoroughly and reach out to your insurer to get all the details. If you face damages, make sure you document it all and collect photographs that can be submitted to the insurance company.

If your claim is denied, National Debt Relief recommends asking for a written explanation for the denial. You can also hire a public adjuster for a second opinion and fair assessment of your property’s damages and hire a legal professional to help you appeal the denial in court if necessary.

Until insurers are held to higher standards with tighter regulations, homeowners and ordinary families must prepare for unpleasant holes in their safety net.