Another Insurer Raising Rates in Texas, Plus Some Holiday Reading
Merry Christmas, Happy Holidays, and Season’s Greetings! I hope all of you are enjoying some well-deserved time off. And since many of you are on holiday, I’d like to pass along some light insurance reading that may interest you.
First, the Houston Chronicle reported that Allstate Insurance has asked Texas regulators to allow the company to raise home insurance rates by an average of 5.7% statewide. And although Allstate’s requested rate increase may not come as a surprise to you, for the simple reason that insurance companies routinely request rate increases, Allstate blames the rate increase on the potential for more wildfires in Texas.
The Houston Chronicle also reported that:
Policyholders with Allstate Fire and Casualty could face an increase of an average 9.8 percent. Allstate and its subsidiaries provide insurance coverage for about 585,000 Texas homeowners.
The higher rates would take effect Jan. 26, 2012, for current customers, subject to regulatory review over the next 30 days. New customers will pay more beginning this week.
In other news, the Huffington Post published an amazing article detailing the insurance industry’s strategy of purposefully delaying insurance payments. The article points out that the delay many of you have experienced in receiving your insurance payments may not have been accidental. Instead, the article explains how the insurance industry embraced the practice of delaying payments after McKinsey & Company – the world’s largest consulting company – recommended to Allstate to employ such a strategy. Once Allstate’s competitors realized how much money Allstate was making off of its delay tactics, many others followed suit.
I hope you find the articles in this post informative and beneficial. Have a Happy New Year and see you in 2012!
Sergio, Merry X-Mas and Happy New Yr to you as well!
Are you aware that the founder of MLG - yeah, the "MAN" himself - CHIP - was one of the "founders" and zealous attorneys that found out about the Mckinsey Report (RE: Allstate's tactics) DECADES ago and.....as they say...the rest is history!! :)
SHIRLEY HEFLIN
It is amazing that States Attorney Generals,Insurance Commissioners as well as the U.S.Justice department (If they have jurisdiction allow this type of conduct to take place.)
The citizens of the US need to be informed about the fraud being perpetrated by the insurance Industry.
As most of you know the Insurers are not Paying Fairly on RCV Policy claims with ACV offers sometimes as high as 50% depreciation. With the 180 time limit to recover the recoverable depreciation being unfair as well.
The insurers continue to eliminate coverage and indemnity in a variety of was that even law makers can not figure out.
The insurance industry is regulated. What are the actual regulations if they are protected from the manipulation they get away with.Neither fines nor bad publicity slow them down.
The insurance lobby is so well financed and powerful it is a unfair playing field.More of the abuse needs to be broadcast ed on Mass Media. I suspect that because all of the Networks earn Millions of Dollars from the Insurance Company Advertising that will never happen. "Its Mayhem" If more people new that the insurance carriers we not on their side or that they were not good neighbors things would change.
Thanks For all of the hard work you are doing to defend the premium paying policy holders.