You're NOT in good hands

[firedog]

I guess Allstate Ins. can't keep a promise.

http://www.thenewsstar.com/apps/pbcs...TES01/60721007

http://www.shreveporttimes.com/apps/...WS01/307220001

[PawDawg]

I'm no fan of the way P&C companies are allowed to operate in this state, but here is a little about what is happening.

There are some carriers (if not most) who have the "wind and hail" exemption in policies now. I think that most of those were approved in Louisiana in the last few years, but it could be that some of the older carriers like Allstate have been allowed to add the expemption. I'm not certain about this, but it would certainly be politics as usual if that were the case.

Regardless, Allstate just took a massive hit. They are a business with other policy holders. The nature of business is to keep costs down, thus this is a way to cut costs.

I'm guessing that more of this blame should lie with the La. Dept. of Ins. than with the carriers. Lack of competition being allowed is the first thing that comes to mind. Try getting a quote for individual health insurance.

It would be interesting to know what the other Gulf Coast states are allowing their carriers to do. Also, which carriers have this exemption in Louisiana and which don't? I'll visit with some of my P&C friends to find the answers.

[TechDawgMc]

Everyone I've known who's had any kind of claim with Allstate has had problems. They appear to be a "cut every cost you can by undermining the consumer" type company.

That said, there does seem to be some issue here. Louisiana's system is a bit odd. I'm not wholly comfortable, though, with the idea that we'll just cut coverage if we run into difficulty making profits.

[PawDawg]

According to the longer version of the story in the NS yesterday, Allstate is/was the only major company south of I-10 that offered wind and hail.

I'm not wholly comfortable, though, with the idea that we'll just cut coverage if we run into difficulty making profits.

You mean loss of profits from natural disasters right?