Allstate to raise prices for home insurance
Allstate is raising prices for home insurance policyholders and is tightening its home insurance underwriting standards, according to media reports.
Robert Hunter, director of insurance at the Consumer Federation of America, tells InsuranceQuotes.com: “I don’t think raising rates is a good strategy to sell more insurance.”
Allstate is making the move to improve profitability in its home insurance business. Allstate executives partly blame a series of natural disasters — including the recent wave of deadly tornadoes — for the home insurance unit’s weak performance.
Referring to employees of the home insurance business, Allstate CEO Tom Wilson says: “I’ve been beating on those guys for three years, telling them the homeowner’s business was the worst-performing business we had. I don’t know if they all believed me. They thought the weather was going to get better.”
Wilson’s remarks were reported by Dow Jones Newswires. Wilson and other Allstate executives discussed the company’s business strategies during a meeting with Wall Street analysts.
Allstate is the country’s No. 2 home insurer.