Book SummaryDelay Deny Defend, by Jay M. Feinman

1-Page Summary1-Page Book Summary of Delay Deny Defend

In Delay, Deny, Defend, published in 2010, legal scholar and insurance expert Jay Feinman argues that major US insurance companies have transformed from trusted protectors to profit-maximizing entities that systematically avoid paying legitimate claims.

When you purchase insurance—whether for your home, car, or health—you’re buying more than just a policy. You’re investing in peace of mind: a promise that you’ll be protected if and when disaster strikes. Yet, notes Feinman, many Americans find themselves bewildered and frustrated when filing claims, discovering that the protection they thought they’d purchased seems to evaporate when they need it most.

This disconnect between expectation and reality is no accident. Feinman alleges that what was once a system designed primarily to protect policyholders has evolved into one that prioritizes corporate profits over customer care. He argues that this shift represents a profound breach of the traditional insurance promise. This guide explores Feinman’s explanation for how this shift occurred and its consequences for American policyholders, looking at:

• How major insurance...

Delay Deny Defend Summary Part 1: The Transformation of the Insurance Industry

We’ll begin this guide by exploring the origins of the “delay, deny, defend” strategy that Feinman says is practiced so widely by major insurers today. First, we'll examine the evolution and purpose of insurance throughout history. Then, we’ll investigate how, beginning in the 1990s, major insurance companies underwent a significant shift in their business model—one that Feinman says prioritizes profit over people.

The Evolution and Purpose of Insurance

According to Feinman, insurance serves as a key safety net for middle-class Americans by offering financial security for when life gets unpredictable. When we buy insurance, we’re buying a promise of protection against financial losses. Based on this simple promise, insurance has grown into a massive industry in the US, with thousands of companies now collecting hundreds of billions in premiums each year.

The business model of the insurance industry is straightforward, explains Feinman: People pay a small, certain amount now (the premium) to avoid potentially losing much more later. An insurance company can afford to absorb major losses that individuals can’t because it spreads its risk across a large pool of...

Delay Deny Defend Summary Part 2: The "Delay, Deny, Defend" Strategy

Once insurers have sorted their claimants and paid those willing to accept below-fair offers, they turn to those who hold out—subjecting them to what Feinman calls the “delay, deny, defend” strategy. This strategy includes systematically slowing down claim payments; refusing to negotiate and selectively interpreting policy language to deny legitimate claims; and aggressively fighting against claimants in court. We’ll walk through each prong of the strategy in detail, then discuss the broader societal costs it imposes.

Delay: Slowing Down the Payment Process

Feinman explains that under the “delay” part of their three-pronged approach to profit maximization, insurance companies deliberately slow down claim payments through various stonewalling tactics. These can include requiring excessive documentation, transferring claims between multiple adjusters, failing to return phone calls promptly, and using complex technical language in communications. This systematic delay serves two financial purposes, which we’ll explore below.

(Shortform note: Some states have begun to push back on these aggressive delay tactics. [California’s insurance regulations establish strict time...

Delay Deny Defend Summary Part 3: Reform Proposals

Feinman proposes some regulatory reforms to compel better behavior from the insurance companies. These reforms include mandatory data reporting, meaningful financial penalties for violations, and expanded legal rights for policyholders to sue their insurers.

Reform Proposal #1: Mandatory Data Reporting

Feinman stresses the need for mandatory public reporting of claims-handling data. By requiring insurers to disclose how often they pay, delay, or deny claims, consumers would gain the power to choose companies based on their true claims-paying history—rather than catchy slogans or mascots.

Does More Information Lead to Better Consumer Choices?

Feinman’s idea about expanding access to information reflects traditional economic thinking, in which consumers who have more information about products make better purchasing decisions. However, research suggests that more information doesn’t always lead to better consumer choices.

When consumers encounter overwhelming amounts of product information, their ability to process information becomes strained. Rather than carefully analyzing all...

Shortform Exercise: Understand How Insurance Companies Operate

Feinman argues that insurance companies tilt the playing field in their favor. Reflect on your experience.

Have you or someone you know experienced “delay, deny, defend” tactics when filing an insurance claim? How did this experience affect your view of the insurance industry as a whole?