Insurance claim costs jump more than $200 million in Washington

An estimated $190 million of the increase is attributed to effects on homeowners’ insurance claims due to the Insurance Fair Conduct Act, commonly known as R-67. Key factors include insurers limiting fraud investigations and paying questionable claims rather than risk potentially unlimited punitive damages. "This study provides strong evidence that there has been a negative impact on insurance claim costs," said Karl Newman, NW Insurance Council president. "Unfortunately, increased claim costs are paid from policyholder premiums and reserves and can lead directly to higher insurance bills for Washington residents.