Sen. Clinton blasts Allstate for hurricane policy
U.S. Sen. Hillary Rodham Clinton, D-NY, has written a letter expressing her concerns about Allstate Corp.Ã¢â‚¬â„¢s ongoing move to lessen its presence in the homeowners insurance market in Westchester County and the surrounding region. Ã¢â‚¬Å“It is my understanding that your decision was based on a Ã¢â‚¬Ëœhurricane risk management strategyÃ¢â‚¬â„¢ that your company implemented last year,Ã¢â‚¬? Clinton wrote in the letter dated Friday. Ã¢â‚¬Å“However, it is still not clear how the perceived risk justified your sudden decision to deny coverage to your customers in New York. Moreover, other insurers in the same areas and presumably exposed to the same risks, have not taken the extreme steps you have.Ã¢â‚¬?
Allstate, the largest insurer in downstate New York with 26 percent of the market, announced in 2006 that it would no longer write new homeowners’ coverage in Westchester, Long Island or New York City as part of a broader move to lower its hurricane risks in coastal states. It also said last year that it would not renew some homeowners’ policies in those areas as they expire, with total attrition of policies not to exceed a state-mandated limit of 4 percent a year.
ClintonÃ¢â‚¬â„¢s letter was addressed to Thomas J. Wilson, chief executive officer of Allstate.