Allstate's Business Philosophy
The Lexington Herald-Leader has a story in yesterday's paper about the practices of insurance giant Allstate being on trial in Kentucky. In the early 90's Allstate received extensive advice from business consulting guru McKinsey & Co. about how to maximize shareholder value at the expense of claimants. Allstate's relationship with McKinsey & Co. has been thoroughly investigated and documented by David Berardinelli in his book, From Good Hands To Boxing Gloves. More stories about this case, alleging that Allstate has acted for years with systematic bad faith, are here, here, and here. I'll continue to follow the trial and provide updates as warranted.