Open main menu
Home
Random
Recent changes
Special pages
Community portal
Preferences
About Wikipedia
Disclaimers
Incubator escapee wiki
Search
User menu
Talk
Dark mode
Contributions
Create account
Log in
Editing
Allstate
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
==Criticism== In July 2008, the [[American Association for Justice]] ranked Allstate No. 1 among nation's worst insurers. This ranking was given because: "While Allstate publicly touts its 'good hands' approach, it has instead privately instructed its agents to employ a 'boxing gloves' strategy against its policyholders," said American Association for Justice CEO Jon Haber.<ref>{{cite web | url = http://www.washingtoncitypaper.com/blogs/citydesk/2008/07/09/allstate-gets-a-spanking/ | first = Erik | last = Wemple | date = July 9, 2008 | publisher = Washington City Paper | title = Allstate Gets a Spanking | access-date = July 21, 2010 |url-status = live| archive-url = https://web.archive.org/web/20110605084219/http://www.washingtoncitypaper.com/blogs/citydesk/2008/07/09/allstate-gets-a-spanking/ | archive-date = June 5, 2011 }}</ref> Allstate criticized the report, with a spokesman noting that "The personal injury lawyers behind this report provide no evidence for their statements other than decade old recycled allegations that have been shown to be without merit in courts of law."<ref>[http://www.bizjournals.com/phoenix/stories/2008/07/07/daily50.html Phoenix Business Journal] ({{webarchive|url=https://web.archive.org/web/20080713092702/http://www.bizjournals.com/phoenix/stories/2008/07/07/daily50.html |date=July 13, 2008 }}): "American Association of Justice ranks Allstate No. 1 among nation's worst insurers"</ref> In 2009, Allstate successfully fought for federal government TARP fund eligibility only to decline it once they obtained eligibility.<ref>{{cite news | url = https://money.cnn.com/2009/05/19/news/companies/allstate_tarp.reut/index.htm | title = Allstate: No thanks to TARP money | date = May 19, 2009 | publisher = money.cnn.com | access-date = July 21, 2010 |url-status = live| archive-url = https://web.archive.org/web/20110113031143/https://money.cnn.com/2009/05/19/news/companies/allstate_tarp.reut/index.htm | archive-date = January 13, 2011 }}</ref> ===Auto insurance claims=== An investigative report in February 2007 by [[CNN]] revealed that major car insurance companies, like Allstate, are increasingly disputing [[vehicle insurance|auto insurance]] claims from individuals injured by their insured members.<ref name="cnn-20070209">In some cases, Allstate proposed settlement amounts as small as $50, asking claimants to "take it or leave it". The investigative report found that insurance companies often make it so expensive and time-consuming to go to court to get full settlement amounts, that it would not be worth the victims' time. The claims handled in the matter were very minor collision type losses that did not result in any ($0) damage to the car, and therefore was the insurance company protecting its assets and the premium paying public money, by keeping rates as low as possible. {{cite news |url=http://www.cnn.com/2007/US/02/09/insurance.hardball/index.html |title=Auto insurers play hardball in minor-crash claims |publisher=CNN |date=February 9, 2007 |url-status = live|archive-url=https://web.archive.org/web/20100324210950/http://www.cnn.com/2007/US/02/09/insurance.hardball/index.html |archive-date=March 24, 2010 }}</ref> In 2010 Allstate commanded 18% of the auto insurance market in the United States.<ref>{{cite web|url=http://autoinsurancetips.com/good-deal-auto-insurance-how-find-best-affordable-coverage|title=A Good Deal on Auto Insurance: How to Find the Best Affordable Coverage|publisher=AutoInsuranceTips.com|url-status = dead|archive-url=https://web.archive.org/web/20100114072340/http://autoinsurancetips.com/good-deal-auto-insurance-how-find-best-affordable-coverage|archive-date=January 14, 2010}}</ref> ===Homeowners claims=== The [[PBS]] television program ''[[NOW (PBS)|Now]]'',<ref>{{cite web|author=Now - PBS |url=https://www.pbs.org/now/shows/333/index.html |title= Home Insurance 9-1-1 |publisher=PBS.org |date=August 17, 2007 |access-date=July 21, 2010| archive-url= https://web.archive.org/web/20100620160029/http://www.pbs.org/now/shows/333/index.html| archive-date= June 20, 2010 <!--DASHBot-->|url-status = live}}</ref> in conjunction with ''[[Bloomberg Markets]]'' magazine, did an exposé regarding Allstate and other major insurers' homeowners insurance policies. ===Catastrophe exposure management=== Allstate has stated intentions of reducing its exposure in [[hurricane]]-prone [[Florida]]. In November 2006, the company did not renew 120,000 policies that were expiring at that time. Governor [[Charlie Crist]] and the Florida Cabinet passed a 90-day emergency order to temporarily prevent insurance companies from not renewing policies.<ref name="garcia">{{cite news |url=http://www.miami.com/mld/miamiherald/16744640.htm |title=Date set for insurance rate filings; Insurers can resume policy cancellations as soon as they file required rate reductions in mid-March |author=Garcia, Beatrice E. |publisher=The Miami Herald |date=February 21, 2007 }}{{dead link|date=April 2018 |bot=SheriffIsInTown |fix-attempted=yes }}</ref> On February 20, 2007, Florida Insurance Commissioner [[Kevin McCarty]] clarified the order, stating that insurance companies can nonrenew policies if they satisfy certain conditions, including filing new, lower rates with the state and give customers 100 days’ notice.<ref>{{cite news |title=Ruling: Insurers can drop policies |publisher=St. Petersburg Times |date=February 20, 2007 |last=Zucco |first=Tom |url=http://www.sptimes.com/2007/02/20/Business/Ruling__Insurers_can_.shtml |url-status = live|archive-url=https://web.archive.org/web/20070222091757/http://www.sptimes.com/2007/02/20/Business/Ruling__Insurers_can_.shtml |archive-date=February 22, 2007 }}</ref> ===''From Good Hands to Boxing Gloves''=== ''From Good Hands to Boxing Gloves'' is a non-fiction work on the company written by David Berardinelli, Michael Freeman, and Aaron DeShaw with a foreword by [[Eugene Anderson|Eugene R. Anderson]].<ref>{{cite book | title = From Good Hands to Boxing Gloves: How Allstate Changed Casualty Insurance in America | last1 = David | first1 = Berardinelli | first2 = Michael | last2 = Freeman | publisher = Trial Guides | year = 2008 | isbn = 978-0-9743248-9-0 }}</ref> The book relates profit-boosting strategies that consulting firm [[McKinsey & Company]] presented to Allstate to maximize profits and diminish the amount of money sent to clients who put in a claim. McKinsey specializes in redesigning product delivery systems for Fortune 100 companies (including controversial clients such as [[Enron]]) to maximize profits. McKinsey's recommendation to Allstate, according to Berardinelli, was to low-ball claims so that desperate customers in dire straits would be more likely to accept a settlement offer while Allstate continued to make a profit and collect interest on the insurance payment. Allstate would offer its "good hands" in the way of a low-ball claim and, if the customer did not accept, to get out "boxing gloves."<ref>{{cite web |url=http://www.yourlawyer.com/articles/title/allstate-state-farm-other-bad-faith-insurance-companies-rack-up-record-profits-by-cheating-customers |title=Allstate, State Farm, Other Bad Faith Insurance Companies Rack up Record Profits by Cheating Customers |publisher=Parker Waichman LLP |date=August 3, 2007 |access-date=May 17, 2017 }}{{Dead link|date=September 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> According to a 2006 review in ''Business Week'' magazine, Allstate responded to Berardinelli's allegations by claiming that Berardinelli's allegations were "unfounded and unproven."<ref name=bw>{{cite web|url=http://www.businessweek.com/magazine/content/06_18/b3982072.htm |title= In Tough Hands At Allstate |publisher=Business Week |date=May 1, 2006 |access-date=July 21, 2010| archive-url= https://web.archive.org/web/20100714054219/http://www.businessweek.com/magazine/content/06_18/b3982072.htm| archive-date= July 14, 2010 <!--DASHBot-->|url-status = dead}}</ref> Legal decisions on the issues outlined in the book have led to varied outcomes in court. According to the ''Business Week'' article, "Courts and regulators in a number of states, including New York, Pennsylvania, and Washington, have forced Allstate to halt or change its practice of handing out a controversial 'Do I Need an Attorney?' form to people involved in accidents." On the other hand, the article also states that seven court rulings had rejected attacks on the practice. While many of the cost-reduction strategies McKinsey recommended at Allstate remain in place, some were ended by legal and regulatory challenges.<ref name=bw/> ===Use of Colossus=== Many criticisms leveled against Allstate (and other insurers), including Barardinelli's book, involved the use of a software program called "Colossus" to process claims. In 2010, Allstate paid a $10 million fine to settle a lawsuit brought by 41 states concerning inconsistencies in the manner in which Colossus was used. It also agreed to standardize its use of the software. However, “it is important to note that we found no systemic underpayment of bodily injury claims,” New York Insurance Superintendent James J. Wrynn said in a press release.<ref>{{cite news |last=Islam |first=Faizan |date=October 19, 2010 |title=Allstate Layoffs |location=Buffalo, NY |url=https://ustatesautoinsurance.com/allstate-layoffs/ |access-date=December 8, 2023}}</ref>
Edit summary
(Briefly describe your changes)
By publishing changes, you agree to the
Terms of Use
, and you irrevocably agree to release your contribution under the
CC BY-SA 4.0 License
and the
GFDL
. You agree that a hyperlink or URL is sufficient attribution under the Creative Commons license.
Cancel
Editing help
(opens in new window)