Last week, Allstate Insurance Co. handed over parts of the McKinsey Documents, a controversial set of documents that gives insights on how insurance companies determine rates, to attempt to appease the state of Florida. For some time now, the Florida Office of Insurance Regulation has sought the documents to supplement an investigation into how Allstate has set the rates on its homeowner premiums. Allstate, however, argues they only used the documents to set auto-insurance rates.
The documents in question were due to the Office of Insurance Regulation on January 15 for a hearing about the company’s request for a thirty-five percent increase on the rates of property insurance in Florida. The Insurance Commissioner dismissed the hearing, however, because Allstate would not hand over the appropriate documents. The Commissioner also suspended Allstate, and all new business the company’s agents could write in Florida, from being able to write any new auto-insurance policies. On January 18, after Allstate asked for an appeal on the suspension, the 1st District Court of Appeal issued a stay. This setback in the case prompted the Insurance Commissioner to state he would continue his pursuit to get Allstate and its competition to lower property insurance rates throughout the state. The Office of Insurance Regulation calls the failure to hand over all of the documents criminal, and harmful to the citizens of Florida. Allstate claims it will continue to comply with Florida regulators and release more documents on a weekly basis.