Allstate

From Wikipedia, the free encyclopedia

(Redirected from Allstate Corporation)
Jump to: navigation, search
This article is about the American insurance company. For the line of automobiles, see Allstate (automobile).
Allstate Corporation
TypePublic (NYSE: ALL)
Founded1931
HeadquartersNorthbrook, Illinois, USA
Key peopleThomas J. Wilson, CEO
IndustryInsurance & Finance
ProductsAuto, Home, and Business Insurance
RevenueImage:Green Arrow Up Darker.svg$35.383 billion USD (2005)
Operating incomeImage:Green Arrow Up Darker.svg$2.418 billion USD (2005)
Net incomeImage:Green Arrow Up Darker.svg$1.765 billion USD (2005)
SloganYou're in good hands
Websitewww.allstate.com

The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States and the second-largest of all personal lines insurers in the U.S. Allstate was founded in 1931 as part of Sears, Roebuck and Company.

The company slogan is "You're in good hands." The current advertising campaign, in use since 2004, asks, "Are you in good hands?" Their current spokesperson is Dennis Haysbert. Allstate sponsors various sporting events, including the Allstate Sugar Bowl, the Allstate 400 at the Brickyard NASCAR race, and the United States Olympic Committee.

Contents

[edit] Products available

Allstate sells auto insurance, home insurance (in certain localities), life insurance, umbrella insurance, and commercial insurance, to name a few. Its advertising campaign is centered around its "Your Choice Auto" product, which offers accident forgiveness and lower deductibles for all drivers willing to pay an extra premium.[1]

[edit] Accolades

Allstate Insurance Company announced on November 12, 2007 the launch of a new eco-friendly insurance option, Allstate Green. Allstate has been recognized with numerous awards, including

  • The World's Leading Top 100 Companies- Forbes magazine, (2004-2005).
  • America's Most Admired Companies - Fortune
  • 100 Best Companies for Working Mothers – Working Mother
  • Top 50 Companies for Diversity, DiversityInc[2]

[edit] Catastrophe exposure management

Allstate has stated intentions of reducing its exposure in hurricane-prone Florida. In November, Allstate began dropping 120,000 policies that were up for renewal at that time. Governor Charlie Crist and the Florida Cabinet passed a 90-day emergency order to temporarily prevent insurance companies from dropping policies.[3] On February 20, 2007, Florida Insurance Commissioner Kevin McCarty clarified the order, stating that insurance companies can drop policies if they satisfy certain conditions, including filing new, lower rates with the state and give customers 100 days notice.[4] Allstate is currently under investigation by the Florida Department of Insurance as to whether it conspired with other property insurers to artificially keep premiums high.[5]

On May 11, 2007 Allstate announced it would no longer offer a homeowners insurance product in California, however, Pacific Specialty Insurance Company homeowners insurance is available in every California Allstate Agency.

[edit] Competition

Major insurance competitors include State Farm, Farmers Insurance Group, Nationwide, Infinity Insurance, Progressive, and GEICO.

[edit] Criticism

[edit] Auto insurance claims

An article published on May 2006 in Business Week details how Allstate routinely tries to deny its policy-holders their full legitimate benefits, often paying out less than they're entitled to. Quoting a critic of Allstate, Business Week writes:

"Claimants in the 'good hands' category may get swift reimbursement, but they will end up with less than they're entitled to," he says. Those who hold out for more — and retain a lawyer to help them get it — face battering in the courts and potentially years of delay. "You can get your claims resolved promptly or fairly," he argues, "but not both." Also according to the article, "Allstate deploys a variety of systems...to make sure it pays the minimum necessary — and it plays hardball with those who seek more."[6]

An investigative report in February 2007 by CNN found that major car insurance companies, like Allstate, are increasingly fighting auto insurance claims from those who incurred soft-tissue injuries by their insured members.[7]

[edit] Homeowners insurance

The PBS television program Now,[8] in conjunction with Bloomberg Markets magazine, did an exposé regarding Allstate's home owners insurance policy change. The idea was to increase profit by not living up to the customers' policy expectations.

Allstate changed the terminology of the policy to "extended coverage", in order to convince the policy holders that coverage was still the same or even better. In reality the coverage was lowered.

Interviewed customers said insurance agents lied about what was covered with the policy change. When claims were filed, Allstate fought tooth and nail to avoid paying the full amount of the claims. Allstate used delay tactics in court, in order to make the customer give up.

The program also mentioned State Farm as having used the same consulting firm, McKinsey & Company, that came up with this idea. State Farm customers were complaining as well.

The unhappy insurance customers urged everyone to review their policies to make sure their coverage is adequate.

[edit] "From Good Hands to Boxing Gloves"

This is a book written by David Berardinelli, JD, Michael Freeman, Ph.D., D.C., MPH, Aaron DeShaw, D.C., J.D. with a Foreword by Eugene R. Anderson, Esq.,[9]

It is a legal textbook available to plaintiff lawyers who are representing clients who are suing Allstate.

It tells of 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 (controversial clients included Enron) to maximize profits. McKinsey’s recommendation to Allstate 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." [10]

[edit] See also

[edit] References

  1. ^ Allstate Insurance
  2. ^ Awards and Recognitions
  3. ^ Garcia, Beatrice E.. "Date set for insurance rate filings; Insurers can resume policy cancellations as soon as they file required rate reductions in mid-March", The Miami Herald, February 21, 2007. 
  4. ^ Zucco, Tom. "Ruling: Insurers can drop policies", St. Petersburg Times, February 20, 2007. 
  5. ^ St. John, Paige. "Allstate Under Investigation", Tallahassee.com, October 16, 2007. 
  6. ^ Business Week
  7. ^ 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 it assets and the premium paying public money, by keeping rates as low as possible."Auto insurers play hardball in minor-crash claims", CNN, February 9, 2007. 
  8. ^ PBS.org
  9. ^ [1]
  10. ^ [2]

[edit] External links

Retrieved from "http://india.smashits.com/wikipedia/Allstate"
Views
Personal tools

Toolbox