Allstate - not ALL State anymore
This just re-emphasizes the complexities in the Auto Insurance industry - which is regulated not even by the Fed, but by each state! The state regulations even range upto and differ from each other in the capitalization of some of the alphabets in the print communication sent to the customers. That's how rigid the industry is. Every auto insurance company is mandated to report their rates and algorithms behind the rates to the state. Failure to comply with this, is like defrauding on earnings reporting. In the latter, you attract accounting scandal-suits or anti-trust lawsuits, while in the former, you're prevented from running new business as in the case of AllState.
Nevertheless, am I thrilled about AllState being in this condition? From the bottom of my heart. FL is a $1.9 Billion annual business for AllState. That's gone (at least until their lobbyists work something out). PLUS, now they have to undergo re-branding efforts and related expenses right? I mean, in an industry that is built on trust and customer satisfaction, who would believe them if they call themselves ALLState now? I would suggest something like "ALMOST ALLState". Oops, but then they got to change their tagline, perhaps to something like, "You're in good hands, USUALLY - except in FL where we got butter fingers now"
Labels: Auto Insurance