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Gallagher Applauds Decision to Reject Allstate’s Rate Requests

10/8/2005

CONTACT:
Tami Torres or Bob Lotane
(850) 251-6293 or 528-2868
 
TALLAHASSEE – Tom Gallagher, Florida's chief financial officer, today applauded Insurance Commissioner Kevin McCarty's decision to disapprove rate increase requests from Allstate Floridian Insurance Company and Allstate Floridian Indemnity Company.  
Gallagher said that an independent review by the Consumer Advocate's Office in August revealed that the companies' rate requests were unjustified.
 
 "This is great news for Allstate's policyholders," Gallagher said.  "We will continue to closely scrutinize rate requests and demand accountability."
 
In June, Gallagher called for an independent review of Allstate's rate requests and criticized Allstate's pursuit of higher rates on the heels of dropping 95,000 of their policyholders. 
 
The independent review, conducted by the Consumer Advocate's Office, was published in August and forwarded to the Insurance Commissioner's Office.  The review revealed that these Florida-only companies were attempting to justify their rates based on losses from other states and had not adequately documented how the reduction of 95,000 policyholders was factored in their rates. 
 
At that time, Gallagher urged the Insurance Commissioner to stop Allstate from billing Florida homeowners for an unapproved, excessive rate increase. 
 
"In the wake of multiple hurricanes, I recognize that there will be pressure on insurance rates," Gallagher said.   "But it is mission critical for Florida homeowners that we continue to aggressively scrutinize rates while also pursuing solutions for enhancing competition so consumers have choices."

As a statewide elected officer of the Florida Cabinet, Chief Financial Officer Tom Gallagher oversees the Department of Financial Services, a multi-division state agency responsible for management of state funds and unclaimed property, assisting consumers who request information and help related to financial services, and investigating financial fraud. Gallagher also serves as the State Fire Marshal.