February 05, 2008
OK I had to post this..this is a little too bizarre.
Allstate Floridian Insurance Co., a subsidiary of Allstate Insurance, sent the first of five groups of executives in a two-day agenda to testify in front of the state’s recently formed Senate Select Committee on Property Insurance Accountability in Tallahassee (ahh the Florida legislature is on the case, I feel more secure already).
Sen. Jeff Atwater, (R)- North Palm Beach repeatedly asked the Allstate team, led by Chief Executive Officer Joseph Richardson Jr., to explain a footnote attached to a statement in their 2007 PowerPoint presentation that seemingly contradicted an outlook of reduced rates for Allstate customers. According to Atwater, the footnote indicated that if reduced rates are a possibility based on 2007 legislation, then the company should invoke an accelerated short term forecasting model – one that resulted in a 43 percent rate increase filing.
Ryan Michel, Allstate Floridian chief actuary said it was a case of using “the latest and greatest science” to arrive at a rate that would support the company’s risk exposure in Florida.
The Allstate executives revealed that Allstate Floridian is on the brink of insolvency and has posted no profit in recent years.
This revelation prompted Sen. Ronda Storms (R) Hillborough County , to ask CEO Richardson how much he earns per year. After a brief consult with an Allstate attorney sitting at Richardson’s side, the executive testified that his annual salary is “confidential.” Storms then asked the attorney to reveal his annual salary – also privileged information, according to Richardson.
Wow, talk about irrelevance. Let’s see Florida has hurricanes, drought issues, wild fires, sink-holes on top of the ‘regular’ risks that every other state has to deal with, and the most relevant question this Senator has is how much the CEO earns? Isn’t she a Republican? What happened to the big business love?
What’s she insinuation? Is he overpaid? Incompetent? Like paying someone more qualified would make the Florida hurricane issue go away.
Since Sen. Storms has had no luck sterilizing sex offenders, maybe her next target for the giant snip will be insurance company CEOs.
