Watchdog Survey Targets Insurers
Declarations
“While Allstate publicly touts its ‘good hands’ approach, it has instead privately instructed its agents to employ a ‘boxing gloves’ strategy against its policyholders.”
– Washington, D.C.-based American Association for Justice CEO Jon Haber comments on his organization’s ranking of insurance companies in relation to consumer friendliness. The often adversarial attorney group ranked Allstate Insurance number one in unfriendliness, saying the insurer often places profits over policyholders. Allstate contracted with consulting giant McKinsey & Co. in the mid-1990s to systematically force consumers to accept lowball claims or face its “boxing gloves,” an aggressive strategy designed to deny claims at any cost, the association said. Allstate was in good company, the group named Unum, AIG, State Farm and Conseco high on the list of top non-friendly firms. The group contends it examines thousands of legal and financial documents before releasing its findings.
Employers Hang Tight
“At a time when media reports raise recession concerns, we believe most employers are maintaining a level-headed risk management outlook.”
– Wisconsin-based Wausau Insurance President and Chief Operating Officer Susan Doyle comments on a recent survey that credits employers for maintaining stability in tough economic times. The survey of financial executives found that only 23 percent of respondents said a recession would cause an increase in their workers’ compensation claims, compared to 62 percent who predicted there would be “no change,” 6 percent who said claims would decrease and 9 percent who said they “don’t know.” Respondents had a similar response when asked how a recession would impact their general liability insurance claims. The recession questions were part of an independent survey of 255 financial executives, the 4th annual Wausau Multiline Productivity Poll, conducted by Guideline, a national research firm.
Weatherford Goodbye
“I am proud of the accomplishments NAIC members have made during my tenure at the NAIC – especially in areas that have resulted in stronger consumer protections, regulatory modernization and more effective financial regulatory oversight.”
– Catherine J. Weatherford, executive vice president and CEO of the National Association of Insurance Commissioners (NAIC) for the past 12 years, comments on her tenure after reports confirmed that she will be leaving the association. Weatherford is expected to continue to serve the association as a consultant through the 2008 Fall National Meeting.