Florida’s Chief Financial Officer Tom Gallagher said that an independent review of Allstate Floridian Insurance Company’s request for higher rates shows deficiencies and raises troubling questions about the company’s motives in seeking rate increases.
“The numbers do not add up,” said Gallagher, “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 is requesting that Allstate customers apply pressure to the company by participating in upcoming public hearings to review Allstate’s rate requests.
The deficiencies in Allstate’s rate request were reportedly discovered after an independent review was carried out by Gallagher’s Consumer Advocate’s Office. The independent review examined Allstate Floridian Insurance Company and its affiliated company, Allstate Indemnity. Both requests were submitted to Insurance Commissioner Kevin McCarty, who oversees the Office of Insurance Regulation and regulates insurance rates.
Based on the conclusions of the report, Gallagher determined that these Florida-only companies are attempting to justify their rates based on losses from other states. In addition, Allstate Floridian reportedly did not adequately document how non-renewing 95,000 Floridians – a substantial reduction in exposure – impacts their rate request.
Finally, the report revealed that the companies are asking for an increase for reinsurance that is out of proportion with their previous rate requests.
Topics Florida A.J. Gallagher
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