Fla CFO Blasts Allstate for Increasing Its Rates Before Public Hearing
The Insurance Journal
June 23, 2005
After an announcement by Allstate Insurance Company early June 23 Florida's CFO Tom Gallagher issued a highly-critical press release blasting the company for its actions and has instructed Insurance Commissioner Kevin McCarty to intervene to stop Allstate from "circumventing the law."
"It has become apparent that Allstate Insurance Company plans to file a 28 percent statewide average rate hike in July, but has already begun sending the bills to Florida homeowners," Gallagher said. "Allstate's move to implement a rate hike and then file for approval blatantly ignores a new law that requires a public hearing for any rate request exceeding 15 percent. This is unconscionable.
"Just one month ago, Allstate announced the non-renewal of 95,000 Floridians.
"Now they are hitting their remaining policyholders with a rate hike that they are afraid to hold up to public scrutiny."
Gallagher said, "With these actions, Allstate has broken faith with their policyholders and the people of Florida. This conduct is even more reprehensible considering just four months ago Allstate's Chairman Edward Liddy characterized the company's 2004 financial performance as a "great year for Allstate" and "We're growing and generating solid returns for our shareholders."
"This is a company that says one thing to analysts and investors and something else to its policyholders when it sticks them with the bill.
"Allstate's policyholders and the people of Florida deserve straight answers from the company and we intend to hold Allstate accountable," the CFO concluded.