When the government forces insurers to lower their rates, a problem can be born. Allstate has already pulled out of the property market and now they will be even less profitable in their auto segment. Not that I care if they have problems because I’m an independent, I just don’t like to see the D.O.I. forcing reductions so that they look like the good guy at the expense of an insurer. This is a forced rate change and I am sure Allstate is not happy today.
I guess the DOI was very upset when Allstate pulled out from property market. I was expecting some type of revenge by the DOI, but this is like a bombshell for the Allstate. I don’t understand how Allstate can by the 5th largest auto insurer and has 9% of CA market if they were over charging all this time. Consumers are not stupid and they would’ve gone to other carrier. What Poizner is saying doesn’t make any sense to me. AAA had $100 mil reduction and GEICO had only $65.8 mil reduction. I wonder how much St. Farm reduced their rate. I’m an IA, so, it doesn’t matter to me, but Poizner needs to stop abusing his official authority.
They have had the same forumla for years, they think they have more power than the regulators, approach them very arrogantly, and it ends up being a self inflicted wound. Egos are more important than profits at Allstate, the problem is, their egos end up getting slammed sooner or later. This all boils down to the brains running this organization and the bottom line is, none of them have any.
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When the government forces insurers to lower their rates, a problem can be born. Allstate has already pulled out of the property market and now they will be even less profitable in their auto segment. Not that I care if they have problems because I’m an independent, I just don’t like to see the D.O.I. forcing reductions so that they look like the good guy at the expense of an insurer. This is a forced rate change and I am sure Allstate is not happy today.
I guess the DOI was very upset when Allstate pulled out from property market. I was expecting some type of revenge by the DOI, but this is like a bombshell for the Allstate. I don’t understand how Allstate can by the 5th largest auto insurer and has 9% of CA market if they were over charging all this time. Consumers are not stupid and they would’ve gone to other carrier. What Poizner is saying doesn’t make any sense to me. AAA had $100 mil reduction and GEICO had only $65.8 mil reduction. I wonder how much St. Farm reduced their rate. I’m an IA, so, it doesn’t matter to me, but Poizner needs to stop abusing his official authority.
They have had the same forumla for years, they think they have more power than the regulators, approach them very arrogantly, and it ends up being a self inflicted wound. Egos are more important than profits at Allstate, the problem is, their egos end up getting slammed sooner or later. This all boils down to the brains running this organization and the bottom line is, none of them have any.
I have to agree with this one. And I’m an agent there!