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It has been reported that an
Allstate agent in the Central Midwest is sending his client base a
packet of information he has culled from various newspapers and
financial publications discussing the September 11th attack. Seems he is
trying to convince them that the 9/11 tragedy is the reason for
Allstate's rate hikes.
Personal lines
P&C rates are not affected in any significant manner by the 9/11
tragedy!
If true, this agent has taken a national tragedy, and used it in a
self serving attempt to justify actions that are actually attributable
to underwriting and profit strategies.
Looks like the direct exposure Allstate had
to the 9/11 losses were some auto losses, contents losses in apartments,
and some living expenses. The CAT team had a presence but it mostly
served as a PR presence. An agent of Allstate has stated: "The
total CAT costs did not exceed that of a good size hail storm."
I believe Allstate has suffered
financial decline from bad management, bad business decisions, and bad
claims handling rather than from direct losses of 9/11.
Maybe this agent has not been
informed as to the actual business reasons for Allstate increases and
has resorted to more populist methods. Maybe this agent is
getting desperate, loosing accts., and trying to make ends meet.
Whatever the reason,
We are appalled by
his actions!
I welcome any and all comments on
this... I'd like to know if I'm off base in my perceptions. I certainly
haven't heard of any other company using 9/11 as a reason to raise
personal lines premiums.
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