Editing Allstate (section)

==Consumer impact summary==
{{Placeholder box|Overview of concerns that arise from the company's conduct regarding (if applicable):
* User Freedom
* User Privacy
* Business Model
* Market Control}}
Allstate, Arity, and their subsidiaries are currently involved as defendants in a lawsuit by the state of Texas , that alleges multiple violations of data privacy regulations. 

===Alleged unauthorized data collection===
{{Main|Allstate and Arity's alleged unauthorized driver data collection through mobile apps}}
Arity, an Allstate subsidiary, has been sued for allegedly collecting drivers' data without consent. Drivers have also faced systematic barriers opting out of said collection that can potentially affect insurance rates.

===Unfair claims handling practices===
*'''Lowball offers and delays'''
::Accused of systematically offering settlements below market value and intentionally delaying claims to pressure claimants into accepting lower payouts. This strategy was allegedly developed with ''McKinsey & Company'' in the 1990s to maximize profits by reducing payouts.<ref name=":0">{{Cite web |title=Behind McKinsey & Company’s Efforts To Help Allstate Squeeze Personal Injury Victims |url=https://www.injurytriallawyer.com/blog/behind-mckinsey-companys-efforts-to-help-allstate-squeeze-personal-injury-victims/ |website=injurytriallawyer.com}}</ref><ref name=":1">{{Cite web |last=Samples |first=Steve |title=Allstate Worst Insurance Company For Consumers |url=https://tex.law/allstate-worst-insurance-company-for-consumers/ |website=tex.lawe}}</ref>
*'''Alligator approach'''
::Internal documents revealed a tactic of "sitting and waiting" to frustrate claimants into settling for inadequate amounts, particularly in personal injury cases.<ref name=":0" />
*'''High denial rates'''
::Florida subsidiaries ''Castle Key Indemnity'' and ''Castle Key Insurance'' denied 47.1% and 46% of claims, respectively, in 2023, some of the highest rates in the state.<ref name=":1" />

===Use of anti-consumer policy language===
:'''Anti-concurrent causation clauses'''
::Pioneered policy language allowing claim denials if a loss involved both covered and excluded events. This was widely criticized after Hurricane Katrina, where homeowners were denied claims for storm damage if flooding also contributed.<ref name=":2">{{Cite web |title=Allstate Rebuts Stinging Criticism |url=https://consumerwatchdog.org/uncategorized/allstate-rebuts-stinging-criticism/ |website=consumerwatchdog.org}}</ref>

===Legal and regulatory violations===
*'''Bad-faith lawsuits'''
::Faced multiple lawsuits for denying valid claims, including a $2.8 million bad-faith ruling in Weiss v. Allstate and a $25 million class-action settlement for inflating premiums and unfairly denying claims.<ref name=":1" /><ref name=":2" />
*'''TCPA violations'''
::A 2024 court ruling found Allstate vicariously liable for illegal robocalls made by subcontractors, violating the Telephone Consumer Protection Act.
*'''State fines'''
::Paid a $70 million fine in Texas for overcharging homeowners and received the largest fine in Maryland history for premium hikes without customer notification.
===Manipulative adjuster training===
:Adjusters were allegedly trained to minimize payouts and received bonuses for reducing claim values. Former employees described a culture of "lying to customers" to meet profit targets.

===Controversial profit-driven strategies===
*'''McKinsey Documents'''
::Internal reports revealed ''Allstate'' prioritized profit over policyholders, aiming to pay 30% below market value on claims. Profits doubled to $4.6 billion by 2007 using these tactics.
*'''Stock Buybacks & Executive Sales'''
::CEO Tom Wilson sold $32 million in stock amid scrutiny, while the company engaged in stock repurchases criticized as price manipulation.

===Discrimination allegations===
:'''Racial Bias'''
::Roberto Clemente Jr. sued ''Allstate'' in 2022, alleging racial discrimination in franchise agency operations. The case settled in 2023.

===Public backlash and reputation===
:Consumer group, ''American Association for Justice'', ranks ''Allstate'' as the worst insurer for consumers due to its claims practices.

:Negative reviews cite poor customer service, claim delays, and premium hikes without improved coverage.<ref>{{Cite web |last=Revell |first=Nicholson |title=Allstate Worst Insurance Company For Consumers |url=https://nicholsonrevell.com/blog/allstate-worst-insurance-company-for-consumers/ |website=nicholsonrevell.com}}</ref>
''Allstate'' has disputed some claims, citing third-party reports supporting its practices.<ref name=":2" />