Allstate
| Allstate Corp logo | |
| Company type | Public (NYSE: ALL) |
|---|---|
| Industry | Insurance & Finance |
| Founded | 1931 |
| Headquarters | Northbrook, Illinois, USA |
Key people | Thomas J. Wilson, CEO |
| Products | Auto, Home, and Business Insurance |
| Revenue |  $35.383 billion USD (2005) |
| $2.418 billion USD (2005) | |
| $1.765 billion USD (2005) | |
| Website | www.allstate.com |
The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States. Allstate was founded in 1931 as part of Sears, Roebuck and Company.
In 1952 and 1953, Sears also used the name Allstate for a line of Allstate automobiles, sold through some of its southern department stores, which were rebadged Henry Js made by Kaiser Motors.
The company slogan is "You're in good hands." The current advertising campaign, in use since 2004, asks, "Are you in good hands?" Their current spokesperson is Dennis Haysbert. Allstate sponsors various sporting events, including the Allstate Sugar Bowl, the Allstate 400 at the Brickyard NASCAR race, and the United States Olympic Committee.
Catastrophe Exposure Management
Allstate, like many other insurance companies, has stated intentions of reducing its exposure in hurricane-prone Florida.[1] In November, Allstate began dropping 120,000 policies that were up for renewal at that time.[1] Governor Charlie Crist and the Florida Cabinet passed a 90-day emergency order to temporarily prevent insurance companies from dropping policies.[1] On February 20, 2007, Florida Insurance Commissioner Kevin McCarty clarified the order, stating that insurance companies can drop policies if they satisfy certain conditions, including filing new, lower rates with the state and give customers 100 days notice.[2]
On May 11th, 2007 Allstate announced it would no longer offer new homowners policies in California.
Competition
Major insurance competitors include State Farm, American Family,Farmers Insurance Group, Nationwide, Progressive, and Geico.
Criticism
Auto insurance claims
An article published on May 2006 in Business Week details how Allstate routinely tries to deny its policy-holders their full legitimate benefits, often paying out less than they're entitled to. Quoting a critic of Allstate, Business Week writes that "Claimants in the "good hands" category may get swift reimbursement, but they will end up with less than they're entitled to, he says. Those who hold out for more -- and retain a lawyer to help them get it -- face battering in the courts and potentially years of delay. "You can get your claims resolved promptly or fairly," he argues, "but not both." Also according to the article, "Allstate deploys a variety of systems...to make sure it pays the minimum necessary -- and it plays hardball with those who seek more."[1]
An investigative report in February 2007 by CNN found that major car insurance companies, lead by State Farm and Allstate Insurance, are increasingly fighting auto insurance claims from those who incurred soft-tissue injuries by their insured members.[3] In some cases, Allstate proposed settlement amounts as small as $50, asking claimants to "take it or leave it".[3] The investigative report found that insurance companies often make it so expensive and time consuming to go to court to get full settlement amounts, that it would not be worth the victims time. The claims handled in the matter were very minor collision type losses that did not result in any ($0)damage to the car, and therefore was the insurance company protecting it assets and the premium paying public money, by keeping rates as low as possible.[3]
Awards
- Allstate was named one of the 100 Best Companies for Women of Color in 2004.
- Working Mothers magazine named Allstate a 2006 Working Mother 100 Best Company – marking the 16th year in a row the company has made the list. The Working Mother 100 Best list recognizes employers whose groundbreaking benefits—from flexible schedules and child care to innovative leave policies for new parents—are helping redefine workplace standards across the country.
- Allstate was honored as a top ten company for African-Americans in technology by Black Data Processing Associates, a national organization dedicated to the professional growth of blacks in the IT industry.
Business Process Outsource
Allstate's HR department has decided to outsource some of its major, transactional functions to IBM. This transformation is designed to improve the effectiveness and efficiency of HR services, while allowing HR’s retained services to concentrate on Allstate's overall talent strategy.
In the fall of 2006, Allstate signed an outsourcing contract with IBM to deliver some of the transactional HR work. IBM will provide Allstate with an integrated HR technology platform and improved HR processes. This will lead to better data collection, tracking, and reporting and trend analysis - and, ultimately, better data-driven talent decisions, per the HR leadership.
The transition of work from Allstate to IBM will occur over the next six months, beginning May 1, 2007. The second wave of transition will occur August 1, 2007. To date, it has not been announced how many HR employees will be affected by this outsource, but several HR groups have been identified. Some of the groups that will be affected by the outsource are the HR Service Center, Talent Acquisition, Payroll and Education. IBM will be utilizing their facilities in the US as well as the Philippines to absorb these functions. Allstate will administer 60 day notices to those employees whose current job functions will be outsourced.
See also
References
- ^ a b c Garcia, Beatrice E. (February 21, 2007). "Date set for insurance rate filings; Insurers can resume policy cancellations as soon as they file required rate reductions in mid-March". The Miami Herald.
- ^ Zucco, Tom (February 20, 2007). "Ruling: Insurers can drop policies". St. Petersburg Times.
- ^ a b c "Auto insurers play hardball in minor-crash claims". CNN. February 9, 2007.
External links
- Allstate.com - Official website
- Allstate Auto Insurance
- www.businessweek.com/magazine/content/06_18/b3982072.htm - 'Business Week Article on Allstate's claims practices'
- gstock.com - Allstate Company stock chart
- [2] - a former adjuster's experience using the Colossus software program used by Allstate in adjusting claims, Seattle Post-Intelligencer
- Yahoo.com - 'The Allstate Company Profile'