Josh Hawley made $26 million in Allstate CEO last year, and the company can't “afford” to pay claims
Most homeowners believe that their insurance policies will protect them when disaster strikes. But this fantasy ruined Natalia Migal.
She recalled how Hurricane Helen destroyed Georgia homes while testifying in the U.S. Senate, but her insurance company Allstate only offers $46,000 in repairs, although independent assessments put the loss close to $500,000.
Senator Josh Hawley digs out Allstate’s recent financial statements, questioning the company’s decision to reward the C-suite after boosting revenue and profits, while policyholders like Migal work hard to compensate for their losses.
“Chief Executive Officer Tom Wilson received $26 million in compensation,” he said at the hearing.
“Ms Miguel cannot repay her request, but whoever he is, Tom will get $26 million. Why is his salary a priority, and Ms Miguel is not?”
Unfortunately, Migal's case is not an outlier. Legislators are stepping up scrutiny of the $1 trillion real estate insurance industry as evidence pours in from policy makers and industry insiders.
Not only the policy holder who testified before Congress on May 13, but also requested regulators, industry professionals who assessed losses and estimated losses. Two of these regulators testified that they were under pressure to reduce the initial estimate, which shocked the committee.
“We just heard the testimony here, sworn in, and your company ordered them to delete or change the damage estimate to reduce spending and make you profit,” Hawley told Allstate Allstate during the hearing.
“In my opinion, you are running an institutionalized fraud system.”
Fiato highlighted the fact that insurers like Allstate are dealing with more claims, postponing the allegation due to changes in weather patterns and the high frequency of natural disasters in recent years.
However, Holly notes that this increased risk is not reflected in the company's finances.
“I have to note that your profits have never been better, they are really extraordinary,” he said. “In fiscal 24, Allstate's revenue was $64 billion; 12% from the previous year.”
