Illinois director of Insurance hits out at Allstate's 'myth-laden pleas'

Illinois director of Insurance hits out at Allstate's 'myth-laden pleas'

Illinois is the latest state to criticise Allstate chief executive officer Tom Wilson who has been accused of making "myth-laden pleas" in his calls for federal regulation of the insurance industry.

Wilson wrote an editorial article in the New York Times recently bemoaning the present state-based regulation system saying it was not up to the job. This sparked an immediate response from New York Insurance Superintendent Eric Dinallo.

Now Michael McRaith, director of insurance for Illinois, has hit out at Wilson accusing him of making inaccurate statement to try and drive home his case.

"Financial institutions pushed for deregulation to promote innovation while fundamental consumer protections, like solvency, were dismissed as obstacles to profit," said McRaith.

"With this in mind, the myth-laden pleas of an otherwise prudent Tom Wilson, CEO of Allstate, in search of regulatory relief should be viewed cynically.

"States have always regulated insurance companies. State regulators enforce vigorous solvency standards embedded for years with nationally stringent stress-tests and capital requirements. Fortunately for insurance customers – policyholders and claimants – the US insurance industry has not suffered the collapsed that resonate through others sectors.

"Mr Wilson's industry deregulation ideal is not viable. Families, small business and large employers – the engines of our economy – are, and must remain, priority one for insurance regulation."

 

 

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