A must read book – From Good Hands to Boxing Gloves to discover the dark hidden side of Insurance
This book delves deep into the dark heart of the profit-boosting strategies that efficiency consulting firm McKinsey & Company cooked up with Allstate and the dramatic negative impact they have had on policyholders…. They created a plan for Allstate’s claims operations known as the Claims Core Process Redesign or simply CCPR…To date, CCPR has generated between $15 to $25 billion in excess profits for Allstate’s stockholders. It has also generated a national firestorm of bad faith litigation. This estimate is based on Allstate’s annual statements showing an increase in surplus from $4.5 billion in 1992 before CCPR to a staggering $21.8 billion in 2004 with an additional $14 billion distributed in that time as shareholder dividends. Allstate has consistently refused to state how much extra profit CCPR generated. However, in 2004 Allstate claims its net income rose to a record $3.1 billion, despite 4 hurricanes in the Southeastern United States. –United Policy Holders