Prudential Insurance Company’s History
Prudential Financial Company is a holding company that offers a variety of financial and insurance products to both individuals and businesses. This includes life insurance, short and long-term group disability insurance coverage, accidental death, dismemberment policy, and other types of insurance coverage. Although there are many exemplar insurance carriers, Prudential is a classic example of an insurance company that isn’t really in the insurance business. It has its hands in securities, investments, residential real estate, home mortgages, the corporate relocation business, and, oh yes, employee benefits.
It has always “searched for a way to maximize income from its investments” according to Wiki, and its claims handling methods, as illustrated in real life Prudential policyholder stories, are a prime example of maximizing income. But, that income comes at the expense of its policyholders. Prudential has been the subject of insurance regulators investigations in 1996, which resulted in a settlement of the claim that they had been “churning” which a process in which agents generate commissions by inducing policyholders to trade up to more expensive policies.
All too often, Prudential rips the financial rug and safety net from under its disability insurance policyholders.