INSURANCE NEWSCAST SPECIAL BULLETIN - HEADLINES 1) Allstate won't offer new California homeowner cover3) Insurance Commissioner Steve Poizner Responds to Allstate's Announcement 1. Allstate won't offer new California homeowner cover Thu May 10, 2007 4:20PM EDT NEW YORK, May 10 (Reuters) - Allstate Corp. (ALL.N: Quote, Profile, Research, the largest publicly traded home and car insurer in the United States, said on Thursday it would no longer offer new homeowner and landlord coverage in California. The insurer said it would still provide homeowner's coverage to existing Allstate property insurance customers in California and Allstate agents would help customers obtain coverage from a third party. Allstate said it took the latest of a series of cutbacks in its nationwide homeowners coverage in order to "responsibly manage" its exposure in "catastrophe-prone" California. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Allstate Announces Property Insurance New Business Change in California; Program Created to Help Consumers Seeking New Policies; Existing Allstate Property Customers Not Affected 05/10/2007 RANCHO CORDOVA, Calif. - While continuing to provide coverage to existing property insurance customers in the state, Allstate announced today that as of July 1, 2007, the company will stop offering new Allstate homeowners and landlord package polices (LPP) in California. "Allstate is taking responsible action now so that the company will continue to be in a strong position to help protect customers in California and across the country," said Robert H. Barge, III, field vice president for Allstate in California. "This new strategy helps protect our existing customers and provides an alternative to California consumers looking for new property insurance policies." Today's announcement does not affect existing Allstate property insurance customers in California. Allstate will continue to renew the homeowners and LPP policies of existing insurance customers that continue to own the property currently insured by Allstate, subject to applicable Allstate underwriting guidelines. To help Californians seeking new property insurance policies, a program has been developed in California through which Allstate's more than 1,200 California agencies may be able to assist customers looking for new property policies in obtaining coverage from Pacific Specialty Insurance Company, a third-party insurance company not affiliated with Allstate. "Allstate agents in California will continue to offer a broad range of high-quality Allstate insurance products to help meet customer needs, including auto, renters, life and other types of insurance," Barge continued. "And, through the program that has been created, Californians will continue to enjoy the convenience of working with their local Allstate agency to help them obtain new property insurance policies." Allstate's announcement is the latest in a series of actions the company has taken to responsibly manage the risk associated with offering property insurance in catastrophe-prone California. Over the past two years, Allstate introduced new business requirements designed to reduce risk and make customers' homes safer by: Increasing the amount of "defensible space" required around homes in wildfire areas to a minimum of 200 feet. Requiring automatic gas shutoff valves on homes near known, active earthquake faults, to reduce the risk of a fire following an earthquake. The company purchased reinsurance contracts to help spread the financial risk posed by potential catastrophes in California. In September 2006, Allstate filed a 12%
increase homeowners insurance rating plan now pending with the
California Department of Insurance to help Allstate better prepare for
natural disasters in California. The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate®" slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 14,800 exclusive agencies and financial representatives in the U.S. and Canada. Customers can access Allstate products and services such as auto insurance and homeowners insurance through Allstate agencies, or in select states at allstate.com and 1-800 Allstate®. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Insurance Commissioner Steve Poizner Responds to Allstate's Announcement They Will No Longer Write New Homeowners Policies in California For Release: May 10, 2007 SACRAMENTO - California Insurance Commissioner Steve Poizner responded to Allstate's announcement today that they will cease writing new homeowners' insurance policies in the state of California: "Allstate's actions in California mirror its recent retreat in other markets such as Florida and New York, and in our free enterprise system, it is their right to choose where it does business. While the writing has been on the wall regarding its intent in California, I believe this is a short-sighted business decision. I expect there will be no shortage of insurance companies who will be more than happy to compete to serve more than 1 million Allstate customers. "Other companies - such as Farmers, Safeco, State Farm, AAA, Hartford and others - have reduced insurance rates for California customers by more than $1 Billion, in direct contradiction to Allstate's actions. "Allstate's decision to not accept new business does not entitle them to charge excessive rates. Therefore, I am issuing an Order to Show Cause for excessive rates and will force Allstate to demonstrate that they are not overcharging consumers in California. In the coming weeks, the Department of Insurance will be watching Allstate's actions very closely to ensure that consumers are protected, and that Allstate fulfills its contractual obligations to its customers. "As the fourth largest insurance market in the world, representing a $118-billion industry, California's insurance market is a healthy and competitive environment. "Allstate customers who have questions about their policy should contact Allstate directly, or may call the Department of Insurance Hotline at 800-927-HELP." Please visit the Department of Insurance Web site at www.insurance.ca.gov. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article |
