Allstate: Difference between revisions

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::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.~~[6]~~

::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.~~[3]~~

::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.~~[1][3]~~

: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.~~[1][2]~~

::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.~~[5]~~

::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.~~[5]~~

::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.~~[3]~~

: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.~~[2][7]~~

: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.~~[4]~~

''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'''.

@@ Line 37: / Line 37: @@
 ::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.[6]
+::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.[3]
+::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.[1][3]
+: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.[1][2]
+::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.[5]
+::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.[5]
+::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.[3]
+: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.[2][7]
+: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.[4]
+''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'''.