Simple. The longer they take, the more profit they can make. Most people believe that the insurance industry's primary business is paying claims. Benevolence, and all of that. It's a myth. And insurers spend billions on talking geckos, ducks, ostriches, cavemen, 'like a good neighbor', 'you're in good hands', and ‘we know a thing or two because we’ve seen a thing or two” types of feel-good advertising to keep people believing that myth. Differing Paradigms People view insurance claims as something they're owed right now. But insurers don’t see it that way. In fact, not even close. Insurers see insurance claims as interest-free loans. Loans with 1-to-5-year grace periods and profit horizons. Loans they can invest, and re-invest, and reap enormous profits from. And because they don't have to pay interest on pending settlement claims, insurers have use of the money completely free of charge. And then from those profits, they will eventually pay claims. But only after they can delay payment no longer. You see, insurance companies are for-profit institutional investors. THAT is their primary business. They take in money from premiums and interest income and invest it in high-return opportunities that are only available to institutional investors. As an example, at a 20% annual rate of return, the profits from a 3-year delay can pay 60% of a claim. A 5-year delay can pay 100% of a claim. Thus, an insurer, with a proper delay mechanism in place, can pay 100% of its claims from investment profits. This makes its stockholders very, very happy. The longer insurers can invest and reinvest the money they would otherwise pay claims with, the more profits they can amass. So much for benevolence.