March 27, 2015 1 min read

Letter to WI Commissioner Ted Nickel Addressing Allstate Claims of Price Optimization

CFA TC

Allstate has provided the Wisconsin Insurance Department with a response rife with unsubstantiated claims and misdirection. Allstate's overarching theme is that its new rating structure remains tethered to risk analysis and the variance away from the mean cost estimate of a risk is introduced merely to soften the sharp edges of justified rate changes. This, however, is demonstrably false. In the sections below we address several of Allstate's claims.

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