Allstate Corporation is the one of the largest insurance providers
United States and the largest that is publicly held. The
company also has personal lines insurance operations in Canada.
Allstate was founded in 1931 as part of Sears, Roebuck and Co., and
was spun off in 1993. The company has had its headquarters in
Northfield Township, Illinois, near Northbrook since 1967. Its
current advertising campaign, in use since 2004, asks, "Are you in
good hands?" The corporate spokesperson is Dennis Haysbert.
2 Corporate leadership
2.2 Current leadership
3.1 "Good hands"
3.2 "Allstate’s stand"
3.4 Social media
5.2 College football
5.3 Sugar Bowl
Allstate Wrigleyville Classic
Allstate AFCA Good Works Team
6 Products available
6.2 Wealth transfer
6.3 Financial products
7 Environmental record
Auto insurance claims
8.2 Homeowners claims
8.3 Catastrophe exposure management
8.4 From Good Hands to Boxing Gloves
8.5 Use of Colossus
9 See also
11 External links
Sears held a national contest to decide the name of a new
brand of car tires. After over two million name submissions,
"Allstate" was chosen. The trademark was adopted the next year. The
tires' success in the catalog and retail stores prompted Sears
Robert E. Wood
Robert E. Wood to praise the
contribution to Sears' retail store success.
The idea for
Insurance Company came during a bridge game on a
commuter train in 1930, when insurance broker Carl L. Odell proposed
to Wood, his neighbor, the idea of selling auto insurance by direct
mail. The idea appealed to Wood, and he passed the proposal to the
Sears board of directors, which approved it.
Company, named after Sears’ tire brand, went into business on April
17, 1931, offering auto insurance by direct mail and through the Sears
catalog. This was in line with one of the objectives of a company
to sell automobile insurance in the same manner as
Sears sold its
Lessing J. Rosenwald was Allstate's first board chairman, and Odell
was named vice president and secretary.
In 1933, at the Century of Progress World’s Fair in Chicago,
Allstate’s Richard E. Roskam sold insurance at a booth in the Sears
pavilion. In 1934,
Allstate opened its first permanent sales office in
In 1941, only about a quarter of US drivers had auto liability
insurance. This led to the state of New York passing a law which
established the financial responsibility of drivers for damage or
injuries resulting from auto mishaps. That law inspired legislation in
other states, and by the mid-1950s nearly every state had some sort of
financial responsibility law on its books.
In 1949 the
Allstate Headquarters Building was completed at 3245 W.
Arthington Street in Chicago. The mid-rise building is currently
vacant (as of 2013) and in danger of demolition. The building is noted
for its early post-war mid-rise construction. This location was
vacated when the company relocated in the post-war years.
The company’s "You're in Good Hands with Allstate" slogan was
created in 1950 by Allstate’s general sales manager Davis W. Ellis.
At the end of the decade, it was used in the company's first network
television advertising campaign, which featured actor Ed Reimers.
Allstate added products throughout the 1950s, including fire insurance
in 1954 and homeowners and life insurance in 1957.
selling insurance to Canadians in 1953.
Insurance Company of
Canada was incorporated in 1964. (In 1952 and 1953,
Sears also sold
an automobile called Allstate.)
In 1967, the company's home office was moved from Skokie to
Allstate continued to sell additional types of
insurance to customers throughout the decade, including worker's
compensation insurance in 1964, surety bonds in 1966, inland-marine
coverage in 1967 and a business package policy in 1969.
The brand itself expanded in the 1950s and 1960s and could be found on
a variety of products like fire extinguishers and motor scooters. In
Allstate car was produced, but it was a flop; it was pulled
from stores by 1953. The
Allstate brand was eventually limited to
insurance, tires, and car batteries by the late 1960s before becoming
insurance-only in the mid-1970s. In 1991, the company went
public before becoming completely independent in 1995.
In 1984, Neighborhood Office Agent program was introduced to make
agents more accessible to customers.
Allstate began to move agents out of
Sears stores and locate
agents in neighborhood offices. In June 1993, 19.8% of
public through a stock offering.
Allstate became completely
independent in June 1995, when
Sears spun off the remaining 80% stake
in the company, distributing 350.5 million shares of
Allstate stock to
Allstate went public when
Sears sold 19.8% of the
company. At the time, it was the largest IPO to date.
In 1996, their website www.allstate.com was launched.
Allstate unveiled a new business model that created a single
contract for exclusive, independent agents selling
It also created a network of call centers.
Allstate purchased the personal lines division of CNA
Financial and subsequently renamed it to Encompass Insurance
Company which is written by independent insurance agents, as opposed
to the direct writing that constitutes the core part of its
In 2003, actor
Dennis Haysbert became Allstate’s spokesman, using
the tagline "That’s Allstate’s stand."
In 2010, actor
Dean Winters became a part of Allstate’s campaign
"Mayhem" “personifying the pitfalls, like collisions and storm
damage, that can befall drivers”.
Allstate Solutions Private Limited
Allstate Solutions Private Limited (also called Allstate
India) was inaugurated in Bangalore which is a technology and
operations centre to provides software development and business
process outsourcing services to its US parent. Allstate's
Bangalore operation is focused on the areas of business intelligence,
analytics, testing and mobility.
The people in this section are members of corporate leadership.
Since going public in 1993:
Thomas J. Wilson
Thomas J. Wilson (2007–present)
Edward Liddy (1999–2006)
Jerry D. Choate (1995–1999)
Wayne E. Hedien (1993–1994)
Thomas J. Wilson
Thomas J. Wilson - Chairman, CEO, President, The
Steven E. Shebik - Vice Chairman, The
Allstate Corporation and CEO,
Brian Bohaty - Executive VP, Corporate
Don Civgin - President,
Allstate Service Businesses
Thomas Clarkson - President,
Allstate West Territory, Allstate
John Dugenske - Executive VP, Chief
Investment and Strategy Officer,
Allstate Corporation and President,
Mary Jane Fortin - President,
Suren Gupta - Executive VP,
Allstate Technology & Strategic
Harriet Harty - Executive VP, Human Resources
Guy Hill - Executive VP, Product Integration & Management
Susan Lees - Executive VP, General Counsel, Secretary
Katherine Mabe - Executive VP,
Allstate Brand Distribution
Jess Merten - Executive VP and Chief Risk Officer,
Julie Parsons - Executive VP, Product Operations
David Prendergast - President,
Allstate East Territory
Mario Rizzo - Executive VP and Chief Financial Officer, The Allstate
Ken Rosen - Executive VP and Chief Claims Officer
Glenn Shapiro - President,
Allstate Personal Lines
Steven P. Sorenson - Executive VP,
Allstate Brand Operations
Thomas Troy - Executive VP,
Business Insurance, Encompass
Esurance and Ivantage,
Allstate's slogan "You're in good hands" was created in the 1950s by
Insurance Company's sales executive, Davis W. Ellis based on
a similar phrase he used to reassure his wife about a doctor caring
for their child. It has been the slogan ever since 1950.
referred to themselves as the Good Hands People.
In the 1960s and 1970s, TV, print and radio advertising featured
Allstate’s spokesman, Ed Reimers. Reimers was often shown making the
cupped-hand gesture. For 22 years, he remained the spokesman.
A study in 2000 by Northwestern University's Medill Graduate
Department of Integrated Marketing Communications found that the
Allstate slogan "You're in good hands" ranked as the most recognizable
Beginning in 2003, as policy growth slowed, Allstate’s television
commercials used spokesman Dennis Haysbert. The ads were intended to
carry the message that Allstate's service was superior to that from
low-cost providers Geico and Progressive. Haysbert appeared in
more than 250 commercials between 2003 and 2016.
Beginning in 2010,
Dean Winters as "Mayhem", mean to
personify the hazards drivers face. The ads conclude with Haysbert
asking "Are You In Good Hands?"
In January 2011,
Allstate released The Lines, a multi-episode TV
drama web series starring actors Teresa Cesario, Kyle Sandgate-Blix,
Jackson Schultz, Bridgette Pechman, Chase Maser, and Corey Doyle cast
as High-School seniors. The series, filmed in the style of a
television drama, depicts the cast in common situations facing teens
with respect to driving (
Texting while driving
Texting while driving in particular). The
series appears aimed at promoting interest and support in favor of
responsible teen driving and road-safety in general. The Lines spans a
total of 8 episodes, each 6–8 minutes in length.
Allstate and other
large corporations are attracted to the rapid growth of social media
for use in their advertising campaigns.
Allstate Corporation owns and operates 18 companies around the United
Canada and India.
Based in San Francisco, California:
Based in Northbrook, Illinois:
Allstate Fire and Casualty
Allstate Indemnity Company
Allstate Property and Casualty
Based in Bridgewater, New Jersey:
Allstate New Jersey
Allstate New Jersey Property and Casualty
Based in Hauppauge, New York:
Insurance Company of New York
Based in St. Petersburg, Florida:
Castle Key Indemnity Company
Based in Irving, Texas:
Allstate County Mutual
Allstate Texas Lloyd's
Based in Jacksonville, Florida:
American Heritage Life
Based in Markham, Ontario:
Insurance Company of Canada
Based in Bangalore, India:
Allstate Solutions Private Limited
Based in Pune, India:
Allstate Solutions Private Limited
Allstate holds naming rights to the
Allstate Arena in Rosemont,
Illinois, near the company's headquarters.
Allstate sponsors branded field goal nets at over 67 colleges and
universities. For each field goal and extra point kicked, Allstate
donates into collegiate general scholarship funds. To date, those
donations exceed $2.9 million.
Allstate also sponsors branded nets
during field goals and extra points at over 20 college bowl games,
Sugar Bowl and the BCS National Championship
Allstate is a partner of the Southeastern Conference and
its 20 sports, including football.
Allstate has been the title sponsor of the Sugar Bowl, one
of the four games that make up the Bowl Championship Series. The game
is played at the Mercedes-Benz Superdome, which is also the home of
the New Orleans Saints.
Allstate is also a sponsor of the New Orleans
Allstate BCS National Championship Game was played on January
9, 2012 and broadcast on ESPN.
Allstate Wrigleyville Classic
The Northwestern Wildcats and the
Illinois Fighting Illini played a
collegiate football game at Wrigley Field on November 20, 2010. It was
the first football game at Wrigley Field since 1970 and the first
collegiate football game at Wrigley Field since 1938 when DePaul
University played its regular games at Wrigley.
sponsored this game.
Allstate AFCA Good Works Team
Allstate advertises through the American Football Coaches Association
"Good Works Team" in which local
Allstate agents surprise players with
trophies in key
Allstate marketing regions.
Allstate became a sponsor of the Mexico National Team, and in
2011 partnered with Major League Soccer and the
United States Soccer
Allstate was a sponsor of the
Allstate 400 at the Brickyard from
2005-2009 – the annual NASCAR Sprint Cup Series race held at
Indianapolis Motor Speedway in late summer. Driver Kasey Kahne was
featured in advertisements.
Allstate is the largest publicly traded property casualty insurance
company in the US. Products include:
Asset protection: auto insurance, homeowners insurance, condominium,
renters, scheduled personal property, business umbrella, commercial
auto, commercial inland marine, small business owner, customizer and
business package policy, landlord package, manufactured home, mobile
home, motor home, motorcycle, boat, personal umbrella, comprehensive
personal liability, recreational vehicle, off-road vehicle, motor
club, loan protection and flood protection.
Estate planning products, business succession planning products, fixed
survivorship life, and variable survivorship life family protection
insurance, term life, universal life, variable universal life,
long-term care and supplemental health
Asset management and accumulation, life insurance and retirement
Allstate has a Sustainability Leadership Team composed of officers and
senior staff from all areas of the company. The team focuses on
sustainability efforts from a company-wide perspective — including
environmental initiatives that embed “green” programs and
processes throughout their operations.
In July 2008, the
American Association for Justice ranked
1 among nation's worst insurers. This ranking was given because:
Allstate publicly touts its ‘good hands’ approach, it has
instead privately instructed its agents to employ a ‘boxing
gloves’ strategy against its policyholders,” said American
Association for Justice CEO Jon Haber. They've since revamped their
Allstate criticized the report, with a spokesman noting
that "The personal injury lawyers behind this report provide no
support for their statements other than decade old recycled
allegations that have been shown to be without merit in courts of
law."  In 2009
Allstate successfully fought to obtain Federal
government TARP fund eligibility only to decline it once they obtained
Auto insurance claims
An investigative report in February 2007 by
CNN found that major car
insurance companies, like Allstate, are increasingly fighting auto
insurance claims from those who incurred injuries by their insured
Allstate currently commands 18% of the auto insurance
market in the United States.
The PBS television program Now, in conjunction with Bloomberg
Markets magazine, did an exposé regarding
Allstate and other major
insurers' homeowners insurance policies.
Catastrophe exposure management
Allstate has stated intentions of reducing its exposure in
hurricane-prone Florida. In November 2006,
Allstate did not renew
120,000 policies that were expiring at that time. Governor Charlie
Crist and the
Florida Cabinet passed a 90-day emergency order to
temporarily prevent insurance companies from nonrenewing policies.
On February 20, 2007,
Insurance Commissioner Kevin McCarty
clarified the order, stating that insurance companies can nonrenew
policies if they satisfy certain conditions, including filing new,
lower rates with the state and give customers 100 days’ notice.
From Good Hands to Boxing Gloves
This is the title of a book written by David Berardinelli, JD;,
Michael Freeman, PhD, DC, MPH; and Aaron DeShaw, DC, JD with a
foreword by Eugene R. Anderson.
The book relates profit-boosting strategies that consulting firm
McKinsey & Company presented to
Allstate to maximize profits and
diminish the amount of money sent to clients who put in a claim.
McKinsey specializes in redesigning product delivery systems for
Fortune 100 companies (including controversial clients such as Enron)
to maximize profits. McKinsey’s recommendation to Allstate,
according to Berardinelli, was to low-ball claims so that desperate
customers in dire straits would be more likely to accept a settlement
Allstate continued to make a profit and collect interest
on the insurance payment.
Allstate would offer its "good hands" in the
way of a low-ball claim and, if the customer did not accept, to get
out "boxing gloves." 
The book was reviewed by
Business Week magazine. According to that
Allstate responded to Berardinelli's allegations by claiming
that Berardinelli's allegations were "unfounded and unproven." Rather
than trying to cheat customers, the company stated that its major goal
was to benefit policyholders by identifying "exaggerated and
fraudulent claims" and that its "processes are absolutely sound . . .
to investigate, evaluate, and promptly resolve each claim fairly,
based on the merits."
Court decisions on the issues debated by Berardinelli and Allstate
have gone both ways. According to the
Business Week article, as of
2006, "Courts and regulators in a number of states, including New
York, Pennsylvania, and Washington, have forced
Allstate to halt or
change its practice of handing out a controversial 'Do I Need an
Attorney?' form to people involved in accidents." On the other hand,
the article also states that "Although plaintiffs have had piecemeal
success in bad-faith cases against Allstate, the insurer points to
seven court rulings that have rejected attacks on CCPR. Last December
a Montana state court noted that while CCPR practices may be illegal
'if misapplied in a particular case, they nevertheless are neutral
with no manifestly illegal purpose.'" While many of the cost-reduction
strategies McKinsey recommended at
Allstate remain in place, some have
been reined in following legal and regulatory challenges in several
Use of Colossus
Many criticisms leveled against
Allstate (and other insurers),
including Barardinelli's book, involved the use of a software program
called "Colossus" to process claims. In 2010,
Allstate paid a $10
million fine to settle a lawsuit brought by 41 states concerning
inconsistencies in the manner in which Colossus was used. It also
agreed to standardize its use of the software. However, “it is
important to note that we found no systemic underpayment of bodily
injury claims,” New York
Insurance Superintendent James J. Wrynn
said in a press release.
SEC Community Service Team
Laureus Sport for Good Award
United States insurance companies
Allstate Northern Ireland
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asking claimants to "take it or leave it". The investigative report
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not be worth the victims time. The claims handled in the matter were
very minor collision type losses that did not result in any ($0)
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Wikimedia Commons has media related to Allstate.
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