Although the fraudulent acts of an insurance company can be subject to penalty and are a direct violation of a state’s insurance code, insurers persist in taking part in these malpractices to retain financial stability.
The individuals who continue to be a target of these violations are its policy holders and have had to face unlawful circumstances, especially when they have found themselves filing a claim for a situation that requires financial attention.
But who exactly is educating insurers on unethical tactics and entertaining the wrongdoing of policyholders?
Were you a victim of bad faith insurance practices? Let the team at Millin and Millin represent your bad faith case and bring you the compensation that is owed to you.
Give us a call for a free case evaluation at 956 631 5600.
A published article by Bloomberg asserts that insurance companies are hiring consultants who develop strategical concepts that aid in their profit goals.
Allstate for example is one of many insurance companies benefiting from corporations such as Mckinsey and Company for effective management strategies.
In fact, after hiring Mckinsey and Company in 1992, Allstate learned concepts that improved the efficiency and profitability of the company.
Through court documentation, it was shown that Mckinsey would advise insurance companies to make low offers in the event of a consumer claim.
It was also noted that Mckinsey encouraged insurance companies to delay a settlement so that they had in their possession, more income for investments.
Although felonious and very anti-consumer, the services offered by McKinsey were unbelievably effective and did not go in vain.
After directly assisting Allstate in their mission for profit making, Allstate began to implement these practices and creating the desired change.
These transformations were directly seen in Allstate’s loss ratio; the ratio of claims paid.
In the 1990’s, the ratio was dropped from seventy-nine percent to fifty-eight percent in 2006.
This massive drop was undoubtedly per the recommendations offered by Mckinsey, and the direct reason for its profit increase and stock value.
Bloomberg also asserted that Mckinsey’s advice generated drastic profit increases and Allstate was not the only company gaining financial benefit.
Farmers Insurance for example also engaged in these malpractices and gained an increase of 4.8 billion dollars.
The source detailed that Mckinsey suggested insurers to train their representatives to make very low claim offers in return for merchandise and financial bonuses.
Insurance representatives were counseled to lie to policyholders and have them believe that they were fully covered, but offered only thirty to sixty percent, when claimants filed for a damaged property.
With so much corruption between insurers and organizations who can care less about the people who are negatively being affected, it’s hard not to wonder if consulting firms are also responsible for the close relationships between insurers and insurance commissioners.
‘Tis the season to be jolly, but if you’re unfortunate, the holiday season can also mean personal injury. Every year, thousands of people end up in the hospital because of holiday-related injuries. Whether you’re putting up lights, hanging wreaths, preparing a festive meal, traveling, or just working in wintry weather, you’ll want to be a little bit more cautious and patient, as one bad step can send you to the emergency room.
The attorneys at Millin & Millin, PLLC understand that sometimes accidents happen, but the best way to avoid them is to recognize what steps you can take to keep them from happening. So take into account the following holiday safety tips to ensure you and your family enjoy a safe and cheerful holiday season.
One of the most commonly reported decorating injuries involves slipping and falling.
With thousands climbing up on roofs and ladders to decorate houses and Christmas trees, it’s no wonder that we sees hundreds of slip and fall injuries during the holiday season. Consider the following safety tips to avoid a horrible accident:
Don’t let holiday travel dampen your holiday cheer.
Traveling means lifting and carrying baggage, but you’ll want to be extra mindful of your body to avoid common neck, back, and shoulder injuries. In fact, these injuries are so common that the Consumer Product Safety Commission reported 75,543 luggage-related injuries in 2013. So as you travel to visit loved ones consider the following tips:
Be careful when carving.
Turkey, ham, roast, and pies are all delicious holiday traditions, but they also require knife safety. The American Society for Surgery of Hands reports that hand lacerations are one of the leading causes of holiday injuries, so be wary and take care of those free fingers to avoid a carving injury. Here are some simple tips to remember:
An electrical shock is not the holiday surprise you need.
Electrical accidents are common during the holiday season because of the use of Christmas lights. Overloaded outlets and frayed wires can have horrific consequences on an unsuspecting victim, so remember to use the following tips to avoid an electrical shock:
This time of year can be especially hectic with huge to-do-lists that cause safety measures to be overlooked, and even then, sometimes the safest families have accidents.
If you are having to file an insurance claim, it’s likely due to the fact that you just suffered a terrible accident. Having to deal with the bad faith tactics of an insurance company is the last thing you need on your plate during this time. Depend on the responsiveness of the Millin & Millin legal team to get your rightful compensation from deceitful insurers.
Contact us at (956) 631-5600 to get help from the premier bad faith insurance lawyers of the McAllen metro and Rio Grande Valley.
