Too Long; Didn't Read
Allstate Corporation told Maryland regulators it was time to update its auto insurance rates. The insurer said its new, sophisticated risk analysis showed it was charging nearly all of its 93,000 Maryland customers outdated premiums. Allstate said the goal of this new customer “retention model” which it was rolling out across the country, was to limit policy cancellations from sticker shock. The Markup and Consumer Reports conducted a statistical analysis of Allstate’s price-adjustment algorithm. It resulted in a suckers list of Maryland customers who were big spenders.