What is the McKinsey report?
Allstate reportedly hired the McKinsey Company, a New York consulting firm, in the mid 1990s to show the insurer how to increase their profits. McKinsey told them to avoid paying claims, and when they do pay pay less. Allstate allegedly saved $700 million and increased their stock price at the same time after taking McKinseys advice. The most damaging part of the reports involved two analogies where McKinsey said that, 1) policyholders who accepted lower settlement offers were in good hands (Allstates slogan), but those that fought the settlement offer should get Allstates boxing gloves, and 2) Allstate should take an alligator approach to claim payments and settlement offers meaning that the company should just sit and wait in the hope of frustrating policyholders to accept less or simply go away. Why wont Allstate produce the report? Its clear that the information contained in the McKinsey report would damage Allstates reputation; however, the company says that the report contains tr
