Allstate Has Record $ 5 Billion Profit

Representing Orlando, Tampa, Miami and Nearby Areas of Florida

After the killer hurricane season of 2005, Allstate Insurance Company pulled back from insuring many risky areas, such as coastal homes and now expects to make record breaking profits in excess of $ 5 billion.

 

Criticism from consumer groups has been harsh. The Consumer Federation of America says Allstate has reaped these profits by price-gouging. Even Alabama Senator Trent Lott has been critical of the company’s self-interested policies and business strategy.

Allstate increased homeowners insurance premium rates by double digits during the two years after Hurricane Katrina. Big increases in premiums continue in coastal states. In some states, such as Florida, Allstate has simply refused to renew policies insuring some coastal homes, focusing on more risk free inland homes for the sake of profit, leaving some longtime customers without Allstate policies.

Yet, Allstate and other insurers have fought tooth and nail to not only protect this business strategy against intervention by state governments, but to also continue to battle to restrict the rights of policy holders by seeking insurance and “tort” reform that benefits their company but leaves consumers and state governments exposed to financial losses formerly borne by the insurance industry for profit. Reforms such as their fight to refuse to renew or extend automobile no-fault coverage in Florida which leaves hospital emergency rooms and taxpayers exposed to bear the loss of unpaid hospital bills of accident victims who have no health insurance. Are you really in good hands?

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