Fla. CFO Blasts Allstate for Increasing Its Rates Before Public Hearing

After an announcement by Allstate Insurance Company early June 23 Florida’s CFO Tom Gallagher issued a highly-critical press release blasting the company for its actions and has instructed Insurance Commissioner Kevin McCarty to intervene to stop Allstate from “circumventing the law.”

“It has become apparent that Allstate Insurance Company plans to file a 28 percent statewide average rate hike in July, but has already begun sending the bills to Florida homeowners,” Gallagher said. “Allstate’s move to implement a rate hike and then file for approval blatantly ignores a new law that requires a public hearing for any rate request exceeding 15 percent. This is unconscionable.

“Just one month ago, Allstate announced the non-renewal of 95,000 Floridians.

“Now they are hitting their remaining policyholders with a rate hike that they are afraid to hold up to public scrutiny.”

Gallagher said, “With these actions, Allstate has broken faith with their policyholders and the people of Florida. This conduct is even more reprehensible considering just four months ago Allstate’s Chairman Edward Liddy characterized the company’s 2004 financial performance as a “great year for Allstate” and “We’re growing and generating solid returns for our shareholders.”

“This is a company that says one thing to analysts and investors and something else to its policyholders when it sticks them with the bill.
“I am urging Insurance Commissioner Kevin McCarty to do everything in his power under Florida law to stop Allstate from circumventing the law and to tell Allstate to cease and desist billing this unapproved rate increase to Florida homeowners.

“Allstate’s policyholders and the people of Florida deserve straight answers from the company and we intend to hold Allstate accountable,” the CFO concluded.

Latest Comments

• July 15, 2005 at 11:09 am

  tom says:

  In ohio we have mandatory car insurance. The insurance co. take your money and use it to lobby(bribe) your government to make laws against you!Have you ever heard of an insura... read more
• June 27, 2005 at 3:45 am

  Tracy Canale says:

  The other side of the coin is that people chose to build their homes in an area that has a repetitive problem. Will any company insure a home in any state that has had the sam... read more
• June 27, 2005 at 8:15 am

  Fidel says:

  I agree with many of the good citizens of Florida that you are being overcharged by those greedy and dishonest corporations. I would like to point out that just a short distan... read more