Allstate: Difference between revisions

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{{InfoboxCompany

{{StubNotice}}{{InfoboxCompany

| Name = Allstate

| Type = Public

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[[wikipedia:Allstate|'''Allstate''']], founded in 1931, is an American insurance provider that also operates in Canada. The company owns several subsidiaries, many of which carry the Allstate name, as well as Esurance. It is one of the largest insurers in the United States.

==Consumer impact summary ==

==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.

~~==Incidents==~~

===Alleged unauthorized data collection===

=== 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.

[[Category:~~Insurance companies~~]]

===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" />

==Products==

{{Placeholder box|This is a list of the company's product lines '''with articles on this wiki'''.

* [[Example product line one]] (release date): Short summary of the product's incidents.

* [[Example product line two]] (release date):}}

==Incidents==

==See also==

{{Placeholder box|Link to relevant theme articles or companies with similar incidents.}}

[[Category:Allstate]]

@@ Line 1: / Line 1: @@
-{{InfoboxCompany
+{{StubNotice}}{{InfoboxCompany
 | Name = Allstate
 | Type = Public
@@ Line 9: / Line 9: @@
 [[wikipedia:Allstate|'''Allstate''']], founded in 1931, is an American insurance provider that also operates in Canada. The company owns several subsidiaries, many of which carry the Allstate name, as well as Esurance. It is one of the largest insurers in the United States.
-==Consumer impact summary ==
+==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.
-==Incidents==
+===Alleged unauthorized data collection===
-=== 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.
-[[Category:Insurance companies]]
+===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" />
+==Products==
+{{Placeholder box|This is a list of the company's product lines '''with articles on this wiki'''.
+* [[Example product line one]] (release date): Short summary of the product's incidents.
+* [[Example product line two]] (release date):}}
+==Incidents==
+==See also==
+{{Placeholder box|Link to relevant theme articles or companies with similar incidents.}}
+[[Category:Allstate]]
+<references />