"But, but all muh CAT losses!!!"
GTFOH will all that chit. This company been bleeding out bank like a stuck pig since 2018.
8 replies (most recent on top)
Allstate abuses the cat loss reinsurers like a me-h junky filing claims on windshields, roadside, and catalytic converters when their brother in law owns a jiffy glass, tow truck, and a scrap yard all in one... at the same time crossing his fingers that his sister will marry that chiropractor she's been dating so he can get into that good PIP / Medpay $$$...
(Yes that was a methy run on sentence)
One should then ask, what is the threshold to pierce the threshold of a CAT event. I suspect each company has a threshold and makes reinsurance decisions accordingly. I also suspect the threshold is different by company which effects rates, reporting and impact to drivers of the bottom line in various ways.
All the news stories carry the same baloney that is fed to them by Allstate: the CAT losses are to blame. No, TW & mismanagement are to blame!
Other carriers face the same risks but aren't bleeding $ like Allsnake.
Virtual handling is driving costs, severity and causing mass exodus of customers. There ya go. Supplements cost a lot of money!!!
...but they're not really "CAT" losses, are they? If they were the result of a single event (hailstorm, wind event, etc.) and the CAT threshold was pierced then reinsurance would kick in. It seems to me that they're the result of many disparate weather events across the country that don't meet the definition of CAT. It seems that Allstate just isn't pricing risk appropriately. I think calling them "CAT losses" is a lie.
If only there were people they could hire who's job it was to understand and price risk!
iTs bEeN a bUMPy RIdE thO!
TG is working, trust me bro