Senate subcommittee hears sworn accounts that insurers delayed, reduced payouts after disasters; insurers deny wrongdoing

A Senate subcommittee on disaster management opened a hearing on insurance industry claims practices following recent natural disasters, hearing sworn testimony from homeowners, field adjusters and a policyholder advocacy director who described repeated delays, reduced payouts and instructions to alter adjuster findings.

The hearing was led by Senator Hawley, chair of the subcommittee, and Ranking Member Senator Kim, who framed the session as an inquiry into where Americans can turn after catastrophe. "Where do Americans turn after catastrophes like the ones we've experienced just in the last calendar year? The answer is they turn to their insurance companies," Hawley said.

The first panel included Natalia Miguel, an Allstate policyholder from Sandy Springs, Georgia, who testified that a 70-foot oak tree fell on her home during Hurricane Helene and that Allstate’s initial written offer was about $46,000 while her sworn proof of loss was $497,000. Miguel said three different Allstate adjusters inspected the property at different times; she described the first adjuster as thorough and said subsequent inspections produced much lower estimates. "When we needed Allstate the most, they failed us," Miguel testified.

Two field adjusters who said they worked on Allstate claims through Pilot Catastrophe — Nick Schroeder and Cliff Milliken — testified under oath that they were instructed, repeatedly, to change or recode line items and to lower estimates. Schroeder described being removed from the Miguel file after preparing a more expansive estimate and said "If I say no, then the claims typically get reassigned." Milliken said reviewers instructed adjusters to "alter and delete factual and causal findings" and that when adjusters resisted the claim was reassigned. Both said such pressure was a pattern, not an isolated incident.

Douglas Quinn, executive director of the nonprofit American Policyholder Association, told the committee he has tracked similar conduct across multiple disasters and decades, citing engineering-report manipulation in Superstorm Sandy, Hurricane Katrina and other events. "Insurers are committing fraud and ruining the lives of the very people who pay them for protection," Quinn said.

Jacob Vertel, a State Farm policyholder from North Carolina whose home was damaged by a tornado, testified he and his family have lived apart and paid out of pocket after prolonged delays. State Farm executive Michael Keating apologized to Vertel on the record and said the company is working to resolve that claim. Keating described State Farm’s mission and said the company had handled roughly 129,600 property claims from Hurricanes Helene and Milton and paid about $1.28 billion on those claims.

Allstate executive Mike Fiatto told the committee Allstate has paid billions in claims, defended the company’s handling of the Miguel file and said some testimony from the first panel was "not accurate." Fiatto said Milliken’s revised estimate and Allstate’s review process led to a settlement of roughly $100,000 for the Miguel claim and said company reviewers are senior technical adjusters who check authority and documentation. "Our goal is to ensure that we pay policyholders what we owe under the terms of their policy properly, courteously and efficiently," Fiatto said in his opening remarks.

Lawmakers pressed both companies on specific practices described by witnesses: the use of photo-only inspections, internal reviewer authority to change field adjuster findings, reassignment of adjusters mid-file, contracting with third parties and alleged retaliation against adjusters who challenge reviewer decisions. Schroeder and Milliken testified they feared losing future assignments after raising objections; Milliken said he received word he would be excluded from future work after agreeing to testify.

Senators pressed executives about historical and industry-wide issues raised by witnesses, including references to consulting advice from McKinsey and to third-party engineering firms such as US Forensics that have been implicated in past litigation. Fiatto and Keating denied that their current company processes direct adjusters to falsify reports, said they vet vendors, and committed to follow up with the committee on vendor contracts and anti-retaliation policies.

The subcommittee did not vote or adopt formal policy at the hearing. Senators said staff would continue to collect documents and evidence. Chairman Hawley said committee staff had already conducted an investigation and would submit evidence into the hearing record; Ranking Member Kim called for a bipartisan, holistic approach that examines FEMA and the broader disaster-recovery system.

The hearing included multiple requests that insurers provide additional information to the committee, and both insurer witnesses agreed to follow up on vendor vetting and retaliation policies. Lawmakers and witnesses urged easier complaint processes for policyholders and better federal-state coordination.

The committee recessed after the first panel and reconvened for a second panel featuring insurer executives; further questioning focused on company processes, oversight and historical litigation. The hearing record will include sworn testimony from the witnesses on both panels and additional documents to be submitted by committee staff.