A new article by BusinessWeek titled "In Tough Hands at Allstate"
The article notes that From Good Hands to Boxing Gloves "tells the story of the key role played by management consultant McKinsey & Co. in reengineering auto insurance claims operations at Allstate Corp. (ALL ) -- and it's a story Allstate doesn't want told."
The article goes on to note "Since 2004, Allstate has been defying an order by the same court to make available public copies of some 12,500 PowerPoint slides McKinsey prepared for the insurer, which form the basis of the book. That's quite unusual -- big companies almost never ignore judicial orders. In a court filing, Allstate has characterized its actions as 'respectful civil disobedience.'"
The article, which also relies upon a statement by Allstate Insurance notes "institutionalized aggressive practices aimed at enriching investors at the expense of customers."
"Collectively, the [McKinsey] documents present a portrait of business strategies that are at odds with the insurer's carefully cultivated public image. Rather than simply rushing to the scene of an accident and doling out cash, Allstate deploys a variety of systems set in place by McKinsey to make sure it pays the minimum necessary -- and it plays hardball with those who seek more.
Click here to learn more about the legal text From Good Hands to Boxing Gloves: How Allstate Changed Casualty Insurance in America. The book, primarily written by David Berardinelli, contains an introduction by Eugene Anderson, three chapters by Dr. Michael Freeman, and is edited by Aaron DeShaw.