Just seems like business as usual with insurance companies. They try to pay as little as possible and just expect the insured to accept whatever the insurance company is willing to pay. The insurance company has nothing to lose by fighting this because if they win, they save millions and if they lose then the'll have to pay what they previously agreed to, provided they don't file bankruptcy beforehand.
While my personal situation has nothing to do with the Caribbean, we had the unfortunate opportunity to use our auto and homeowners insurance two times last year. One situation was hail damage to our house/roof and the other a rental car problem with a road hazard. I was very pleasantly surprised at the ease of doing business and how both claims were resolved with my smaller independent insurance company.
People often shop for the "cheapest" and when insurance is actually needed, it ends up costing a lot when you go with the "cheapest".
I will disagree with your blanket statement about insurance companies and hopefully what Lesley stated is correct.
