Here's a great story from the Huffington Post about the change in the insurance industry over the last 15 years. I'm currently reading the book mentioned in the article, Delay, Defend, Deny. It details how consultants have helped insurance companies like Allstate and State Farm turn their Claims Departments into profit centers rather than the departments that make good on an insurance company's promise to help their customer when disaster strikes.
The change in the insurance industry is like the change in the housing market over the last decade: the industries have undergone a massive shift in how they make money. In both cases, no one has bothered to tell them that the parties on the other side of the transaction may not have the consumer's best interests at heart.