The Good Hands People?

Representing Orlando, Tampa, Miami and Nearby Areas of Florida

The Florida Insurance Commissioner suspended Allstate Insurance Company from selling new policies in Florida this week. Why? Because Allstate has refused to produce subpoenaed documents after it requested authority to hike consumers’ insurance rates as much as 42%.


The State of Florida wants to know why Allstate thinks such exorbitant rate hikes are necessary after years of massive profits and in a year when property insurers should be lowering rates.

Subpoenas issued by the Office of Insurance Regulation seek disclosure of the so-called McKinsey documents in which McKinsey & Company instructed Allstate how to systematically underpay claims starting in the mid-1990’s. The content of these internal documents is so explosive that Allstate has ignored a fine of $ 25,000 per day in a similar Missouri case to avoid disclosure. Among those reports are documents that apparently reflect a scheme by Allstate to reduce rates by purposefully and systematically refusing to examine the validity of each individual claim.

The Florida Insurance Commissioner says these claims handling practices violate Florida’s Unfair Insurance Trade Practices Act and are harmful to Florida’s Allstate customers. Governor Crist says Florida Allstate customers should “fire Allstate” because they charge incredibly high rates, are withholding documents relevant to their claim to a rate hike entitlement and are behaving in a “beyond inappropriate” manner.

Are you in good hands?