How “Delay-Deny-Defend” Became the Norm — and What It Means for You
The insurance industry’s reputation as a guardian of homeowners has eroded since the 1990s. Central to this shift is a concept explored by Jay M. Feinman in Delay, Deny, Defend, and what he calls “culture capture.” This refers to how deceptive or manipulative practices become
normalized in corporate and government institutions — accepted as routine rather than exceptional.
1. Origins of the Tactics: Delay — Deny — Defend
Feinman traces the rise of tactics that prioritize profits over policyholders to the 1990s, when insurers such as Allstate adopted systems designed by McKinsey & Company. They were coached to view claims as a zero-sum game, leading to:
- Delay: Stall communication until the claimant gives up.
- Deny: Reject legitimate claims, especially complex ones like water or storm damage.
- Defend: Contest approved claims by underestimating scope and using biased internal standards.
Feinman argues:
“Insurance doesn’t work when companies delay, deny, defend… they break their basic promise.” — Jay M. Feinman.
2. The Spread of Culture Capture
Inside Insurance Companies
Claims handlers are often rewarded for minimizing payouts, not fairly compensating policyholders. McKinsey’s internal slide called “Good Hands or Boxing Gloves” illustrates the growing adversarial tone within claims departments. (CNN)
Regulatory Capture
State Departments of Insurance (DOIs) are meant to regulate insurers — but the revolving door between regulators and insurance executives has normalized conflict of interest, leaving policyholders with little enforcement recourse. (Saddlebag Notes)
3. Real-World Case Studies
Fire Claims: Dramatic Settlements After Public Adjuster Intervenes
- Orlando, FL – Martin P.
Paid only $35,000 initially. After involving a public adjuster, recovered an additional $214,000 — a 511% increase. (Florida’s Best Public Adjusters) - Sarasota, FL – Apartment complex
Initially denied for being below deductible. A public adjuster reopened the claim and recovered $212,856 for structure and loss of rent. (Insurance Claim Consultants) - North Carolina historic home
Initial offer: $399,000. Public adjuster involvement led to a final settlement of $729,100, boosting the payout by over $330,000. (Public Claims Adjusters)
Million-Dollar Results
- Lake Forest, IL mansion
Initial insurer resistance led to months of negotiation. After detailed documentation — insulation testing, custom bids, opening walls — the settlement exceeded $1.7 million. (onsiteadjusting.com)
4. Expert Insight & Legal Precedent
Words of Authority
- Deborah Senn, former Washington Insurance Commissioner:
“The insurance industry has mutated from a business bound by contract to one of profit-through-deception.” - J. Robert Hunter, Director of the Consumer Federation of America, urges consumers not to settle claims without reading Feinman’s book.
Legal Case: Hensley v. Shelter Mutual Insurance (2007)
A Missouri court found that refusing to settle a fire claim constituted bad faith — a decision that Feinman uses as a key example of insurer misconduct.
5. How Culture Capture Impacts Policyholders
- Claim delays prolong displacement and disrupt lives.
- Underpaid or denied claims can create severe financial hardship.
- Manipulated restoration scopes lead to unsafe or incomplete repairs.
- Weakened regulation leaves policyholders with little recourse.
6. What Can Be Done?
For Policyholders
- Hire an advocate: A public adjuster or attorney can uncover missed damages and negotiate to maximize claims.
- Document everything: From moisture maps to custom bids — evidence matters.
- Know your rights: Stay informed and seek enforcement if insurers misbehave.
For Regulators & Legislators
- Staff DOIs with independent professionals, not industry alumni.
- Enforce penalties for bad faith tactics like those seen in Hensley v. Shelter.
- Mandate transparency around internal claims guidance (e.g. McKinsey slide decks).
7. Final Takeaway: Culture Capture Can Be Broken
Hire an advocate: A public adjuster or attorney can uncover missed damages and negotiate to maximize claims. Document everything: From moisture maps to custom bids — evidence matters. Know your rights: Stay informed and seek enforcement if insurers misbehave.“Culture capture” is not simply inertia — it’s a structural choice. Insurers and regulators alike have normalized unethical behavior. But by shedding light on these practices, supporting public adjusters, and reinforcing regulatory oversight, policyholders can reclaim their power — and reclaim fair treatment.
“Insurance works when the company honors a simple promise: pay what it owes, promptly and fairly.” — Jay M. Feinman
