Tom Gallagher said the report showed deficiencies and
raises troubling questions about the company's motives in
seeking rate increases.
The state has a hearing on its rate increases scheduled
for Aug. 8 in Davie.
"The numbers do not add up," Gallagher said. "It is
becoming clear that their request for a rate increase is
unjustified, and I think they need to reconsider their
decision to raise rates on their policyholders. Allstate
customers deserve accountability from their insurance
provider."
Gallagher said his consumer advocate's office carried out
the review, examining Allstate Floridian Insurance Co. and
its affiliated company, Allstate Indemnity.
Based on the report conclusions, Gallagher said he
determined the Florida-only companies are attempting to
justify their rates based on losses from other states.
Gallagher's office also said St. Petersburg-based
Allstate Floridian did not adequately document how not
renewing 95,000 Floridians impacts its request for a 27
percent statewide average rate hike. The CFO office also
said the increase is out of proportion with previous rate
requests.
However, Gallagher can only make recommendations in the
case. Rate requests go to Insurance Commissioner Kevin
McCarty, who oversees the Office of Insurance Regulation.
Allstate's parent company, Northbrook, Ill.-based
Allstate Corp. (NYSE:
ALL -
News)
reported earning $1.14 billion in the second quarter, up 11
percent from $1.03 billion for the same period the year
before.
Published August 5, 2005 by The Business Journal
http://biz.yahoo.com/bizj/050805/1146431.html?.v=1
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