Legal & Regulatory

NAIC Complaint Index

The complaint index compares a company's share of complaints with its share of the business written. An index of 1.00 means the two shares are equal; below 1.00 means fewer complaints than the company's size would suggest, and above 1.00 means more.

Last reviewed: October 2026 · Editorial methodology

Definition

The complaint index is a statistic that considers a company's share of complaints in relation to its market share, or share of business written. As the Kansas Department of Insurance explains it, an index of 1.00 means the insurer's share of all complaints received is equal to its share of all the business written, and an index of 2.00 means the insurer's share of complaints is twice as large as its share of business written. So below 1.00 means fewer complaints than the company's size would suggest, and above 1.00 means more. The National Association of Insurance Commissioners (NAIC) compiles closed, confirmed complaint information about insurance carriers from state insurance departments, and says you can look up information by state, company, and insurance type for the past three years in its Consumer Insurance Search (CIS) tool. Complaint figures from different sources are not directly interchangeable: the Kansas Department of Insurance notes that its own index differs from the NAIC report because the NAIC report captures only confirmed complaints. The index also varies by legal entity, line of business, state and year, so check the specific company you are considering. Consumers can use the complaint index as one data point when comparing insurers before purchase, alongside AM Best ratings, coverage terms, and pricing.

Where this term matters

NAIC complaint index by company →How to file a state insurance complaint →Insurance Companies →Claims Help Center →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

NAICThe National Association of Insurance Commissioners — sets model laws and publishes complaint data.Complaint RatioA complaint ratio normalizes the complaints a state insurance department receives about an insurer by the insurer's size, so carriers of different scale can be compared. It is related to, but not the same as, the NAIC complaint index.State Insurance CommissionerThe state insurance commissioner (or superintendent/director of insurance) is responsible for licensing insurers and agents, approving rates and policy forms, handling consumer complaints, and enforcing insurance laws within their state.Market Conduct ExaminationMarket conduct examinations are audits conducted by state insurance departments to assess whether insurers are treating policyholders fairly and complying with consumer protection laws.Bad Faith InsuranceInsurance bad faith occurs when a carrier fails to investigate promptly, unreasonably delays or denies a valid claim, or fails to communicate claim decisions—potentially exposing the insurer to damages beyond the policy limits.
Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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