Customer Reviews

From Good Hands to Boxing Gloves: The Dark Side of Insurance

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I'm not aware of another book of this quality, insight or ease of reading on this subject. The author devoted years of tenacious detective work and fact-finding in order to obtain insights and previously confidential information about claims practices at Allstate Insurance. His findings are credible and fact-based. His intellectual curiosity and inferential thinking are very strong, yet his ability to piece together and tell the story in simple, easy-to-read and highly understandable language are even more impressive. This is a first rate job of analysis of an important topic. It focuses on the claims practices initially instituted by Allstate Insurance in its automobile business and subsequently spread throughout it's property and casualty business. The net effect was to greatly reduce settlements to Allstate's customers and claimants while growing the company's operating profits significantly. It both raises deep concerns about, and also helps to explain how anti-consumer practices of such great magnitude could have escaped the detection of regulatory and oversight agencies for so long.

Since the book was published, sufficient additional information has come to light through the availability of respected management consultant McKinsey & Company's work for Allstate that a follow-up version of this book would be even more valuable. Nonetheless this book is essential reading for individuals who believe that their insurance claims may not have been handled fairly by Allstate, or who may be considering the purchase of home, auto or other P&C insurance from Allstate. The practices perfected by Allstate, with McKinsey's assistance, were pioneered by McKinsey at State Farm and elsewhere prior to initiating work at Allstate. Therefore investors, regulators or consumers interested in any of these companies will find this book important reading. Additionally this is "must" reading for insurance professionals interested in keeping their industry "clean", attorneys interested in insurance law and claims practices, those interested in the preservation of corporate ethics and the rule and protection of the law in free market economics, as well as students of first class problem solving will all benefit from and appreciate this book. Overall it is an impressive, insightful, important and highly readable piece of work. I cannot vouchsafe that every single fact and interpretation is correct, but am sure that further refinement of the author's findings will occur as more data comes to the fore.

Do yourself a favor and buy this book if you want to get very mad at the insurance industry and All State Insurance most of all. If you read this and have All State I promise you will drop them! This is a shocking book and one that I could not put down. I read it cover to cover in one sitting.

I have 20+ years coast-to-coast experience as a Property, Casualty, Catastrophe Adjuster, Expert Witness and 3rd party claim consultant. I have worked in-house (staff adjuster), independent and contract adjuster desks for so many Insurance Carriers I can't recall, as well as on the flip side representing the Policyholder (consumer). This insightful and brilliantly written book begins unveiling the protracted power of the 2nd largest lobby "on the hill". What most fail to recognize is how the insurance industry has been by design regulated at the individual 50 states' level (as opposed to the SEC, FDIC, FHA, FAA, FCC, FDA,....). Just why would this be??

Author David Berardinelli's brilliant work here will hopefully and eventually make him more heralded and well-known than the likes of Melinda Ballard, "The Queen of Mold" (landmark lawsuit against Farmers Ins) or Erin Brockovich (played in the movie by Julia Roberts).

Unfortunately many of the insurer tactics detailed in this book have become more malevolent and exponentially widespread because: 1. The Allstate/McKinsey M.O. has spread to Allstate's major competitors so as to protect their market share AND 2. The financials fallout experienced by insurers across the board since 2008. Our best hope is that Mr. Berardinelli authors a sequel or this book inspires a screen play tantamount to the storyline affect in the movie "The Rainmaker". Mr. Berardinelli - you are a modern day Gerry Spence! My hat's off to you sir.

This book should be an eye opener to all property owners. They are not on our side.

I am a personal injury lawyer in Ottawa, Ontario. Reading this book clarified for me that the road blocks I sometimes face in resolving serious accident claims for my clients are more more systemic that I believed. This is an easy read, written in plain English for the average consumer. I read it on the beach and actually couldn't put it down. I will be purchasing additional copies to provide to clients and to have in our waiting room. Injured Victim's Guide to Fair Compensation

Executive Summary: If you have a claim against Allstate, Farmers, State Farm, etc. you have a choice to make. Do you want your claim paid promptly or fairly? Most people choose promptly because they need the money right away. They accept 60%-70% of their claim value. If you want to be paid fairly, then retain a lawyer immediately.

Further note: Lawyers and prospective plaintiffs should read this book. It flows well and quickly. It also helps you realize what you're about to get into. Insurance companies don't play nice or fair. That's to be expected though because Berardinelli assembles the facts and presents a clear case of what these companies actually are - and it ain't nice. Basically, they are predatory and use peoples moments of greatest weakness as profitable opportunities.

OK OK, a bit about the actual book.

Berardinelli points out early why insurance companies are regulated differently from other companies. It's because they, essentially, hold their customer's money in trust with the promise of paying out that money when the customers need it. The problems arise when an insurance company decides that it would rather pay that money to its executive and shareholders. Unlike other companies, like retailers, you pay insurance in return for the promise that someday, if you need ever it, your claim will be paid promptly and fairly.

Sadly, they have no interest in keeping their promise. Insurance executives get paid out of the profits, the more the better.

So, the insurance companies are structured with processes that maximize profits. Maximizing profits means ripping off the customers as much as possible. The only thing that keeps them in check is litigation. That's why insurance companies are so very interested in tort reform. They make a nice profit if they hose 99 people out of $5,000 and pay 1 person $100,000 in punitive damages for unfair business practices. A very nice profit indeed.

All I can say is shame on you Allstate for the horrific acts you have performed that have been written in this book. Its funny how they spend so much money on advertising about how much you are in good hands when the fact of the matter is they have been ranked the worst insurance company in the US. Great job by David Bernadelli on exposing the Mackensie scam that made the profits of this corrupt insurance company explode through the roof.