Tom Gallagher, Chief Financial Officer in Florida with the Florida Division
of Financial Services, blasted Allstate Floridian Insurance for its
proposed gigantic raising of home insurance rates saying, "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. 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.
"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
"Allstate's policyholders and the people of Florida deserve straight
answers from the company and we intend to hold Allstate accountable."
Allstate is one of the state's largest home insurance companies and one of
the few that until recently was still writing home insurance policies.