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Allstate-Insurance
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 English
spokesperson is
Dennis Haysbert,
while their Spanish
spokesperson is Esai
Morales. Allstate
sponsors various
sporting events,
including the
Allstate Sugar Bowl,
the Allstate 400 at
the Brickyard NASCAR
race, and the United
States Olympic
Committee.
Products available
Allstate sells auto
insurance, home
insurance, 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.
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.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.
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.
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.
Criticism
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."
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.
Homeowners insurance
The PBS television
program Now, 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 delaying
tactics in court,
attempting to cause
the customer to 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.
From Good Hands to
Boxing Gloves
This is the title of
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.
For some time, the
book was only
available
exclusively to
plaintiff lawyers
who were
representing clients
who were suing
Allstate but
recently the book
was released to the
general public.
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
(including
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."
Advertising
Ads of Allstate have
featured Dennis
Haysbert, the
official spokesman
for the company. His
commercials
typically end with
one of two the
Allstate
Corporation's
official slogans,
either Are you in
good hands? or
That's Allstate's
stand. In NASCAR
commercials only
Haysbert's voice is
heard. More recently
however his
commercials have
combined the two
with "That's
Allstate's stand.
Are you in good
hands?" which is the
company's slogan in
the form of a
question. Other
advertisements
feature and NASCAR
Sprint Cup driver
Kasey Kahne and
three female fans
who follow him and
have romantic
fantasies of meeting
Kahne and having as
a love interest.
Also they embarrass
themselves and hit
Kahne's car by
accident. In the
latest installment,
it features Kasey
Kahne's car
customized with
hearts and blue
paint scheme and
Kahne dancing in his
driving suit.
- Courtesy Wikipedia
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