WE ARE THE GOOD HANDS
PUBLIC POLICY
Allstate is actively involved in public policy advocacy at the state and federal levels. Extensive state-based regulation of insurance, the importance of a fair court system to our customers, and the priority we place on personal safety and property protection combine to compel Allstate to seek to shape sound public policy. By participating in the development of good public policy and offering ideas and resources in this arena, we help our customers protect themselves from life’s uncertainties and prepare for the future.

BOARD OVERSIGHT AND CONTRIBUTION GOVERNANCE

Allstate maintains a rigorous oversight process for its advocacy efforts. In addition to complying with public disclosure laws at the state and national levels, we maintain internal guidelines and procedures that govern our public advocacy and political activities. Proposals are developed by subject matter experts and personnel within the Government and Industry Relations group for contributions to candidates as well as public policy involvement. With regard to corporate contributions to candidates, our general counsel and the senior vice president for Government and Industry Relations determine the candidates and committees to which our support is offered. These contributions are subject to further oversight by the company’s Board of Directors.

Subject matter experts and government relations professionals in the company are responsible for working with organizations and associations that the company supports. Proposals related to the company’s involvement in public policy and candidate contributions are reviewed by the Senior Leadership team, and reports are presented to the Board annually.  In addition to the company’s internal guidelines and procedures governing public advocacy and political activities, direct corporate political contributions are made as permitted under federal, state and local laws to help elect candidates whose views and positions will improve the insurance market place for the corporation, the insurance industry and the insurance consumer.

Allstate’s use of corporate resources in the public policy arena is consistent with the company’s strategic vision of reinventing protection and retirement for the consumer and is not based upon the personal views of any individual member of management or the Board of Directors. The specific deployment of corporate resources is presented formally to the Board each year and is always guided by the principle of what is best for the interests of our shareholders, employees, agencies and customers.

Support of Public Policy Initiatives

Metric 2017
Employee Support $353,962
Company Support $15,684,819

 

OVERVIEW OF EXPENDITURES

Allstate supports candidates for public office, research associations, coalitions, industry trade associations, nonprofit organizations, advocacy professionals and other groups to advance key priorities. The priorities include topics such as ensuring a healthy regulatory system, promoting fiscal responsibility, fostering market innovation, and promoting safety and security (such as teen safe driving and natural catastrophe management). We may not agree with every position taken by a specific organization, candidate or committee.

In 2017, the company’s efforts in this arena utilized approximately $15.7 million in corporate funds, which represents 0.04% of revenues. In addition, for the same period, the employee-funded political action committees contributed approximately $353,962 to a wide variety of political organizations and candidates.

As part of our public policy efforts, the company supports various organizations, including those that may engage in lobbying activities, and contributes to candidates and political committees. Our resources are allocated among the following categories: research, coalitions, national trade associations, state trade associations, advocacy professionals and corporate political contributions. This report describes each of the categories and the amount we spend in each category. We devote approximately 50% of these corporate resources toward research. Approximately 76% of the total company support was directed to tax deductible, non-lobbying endeavors.

2017 Overview of Expenditures

Metric 2017
Coalitions $448,874
Advocacy Professionals $1,983,446
Political Contributions $323,319.52
Research $8,397,238
National Trade Association $2,664,531
State Trade Association $1,867,409

 

2017 Deductible Expenses and Non-deductible (Lobbying/Political Contributions) Expenses

Metric 2017
Deductible $11,972,242
Non-Deductible $3,705,577

 

ORGANIZATIONS AND INITIATIVES WE SUPPORT

Research

Allstate supports research groups and other organizations that provide information that is used to shape public policy debate and inform consumers and businesses about key issues affecting insurance consumers. Our support is largely focused on improving safety on roads and in homes and combating insurance fraud. In 2017, Allstate provided nearly $8.4 million to research organizations such as the National Insurance Crime Bureau and the Insurance Institute for Highway Safety (see the list of major organizations that Allstate supported in 2017 within this report). The Insurance Institute for Business and Home Safety envisions a world where the durability of homes and commercial buildings is a core societal value — greatly reducing human financial losses, as well as community disruptions, that result from natural and man-made disasters.

Coalitions

Allstate partners with advocacy organizations and other coalitions throughout the country to promote various public policy positions. In 2017, Allstate provided about $449,000 to coalitions, with $74,000 (16%) attributed to lobbying efforts.

Throughout our history, we have also endeavored to make roads safer. We were pioneers in the advocacy of mandatory seat belts and airbags in cars. Today, many of our employees and agencies devote significant time every day to promote safer driving, working with community groups, parents, teen drivers, schools and national organizations. Allstate provides significant human and financial resources to organizations that save lives, prevent injuries, and reduce losses caused by crashes on the nation’s highways. For example, Allstate supports the Advocates for Highway and Auto Safety, a champion in the effort to save the lives of drivers and passengers.

National and State Trade Associations

Allstate contributes to groups that advocate meaningful change for insurance consumers, nationally and in individual states. In 2017, Allstate provided almost $2.7 million to national trade associations, with approximately $848,000 (31%) attributed to lobbying efforts and just under an additional $1.9 million to state trade associations, with approximately $456,000 (25%) attributed to lobbying efforts.

We are also working on building a better insurance regulatory system. The insurance industry currently operates under a different set of regulations in each of the 50 states and the District of Columbia. At the same time, the Federal Insurance Office and other federal agencies are becoming more actively involved in insurance regulatory matters. This patchwork system makes it difficult and expensive to develop innovative products for customers and for Allstate exclusive agencies to operate as efficiently as possible. We believe it is imperative to modernize and improve the regulatory system for insurance companies and consumers. The company therefore supports organizations working for reforms that will help ensure a healthy regulatory system with more uniformity and consistency.

Allstate also supports reforms to our civil justice system to keep pace with changes in technology and address lawsuit abuse. This advocacy includes changes for dealing with electronic document discovery, third party–financed litigation and state-specific challenges. In addition, Allstate advocates for sound theories of civil recovery and supports a fair court system.

Advocacy Professionals

Allstate engages advocacy professionals to help promote public policy positions that affect our stakeholders and our ability to efficiently and effectively operate and compete in the marketplace. Allstate’s government relations team works with these advocacy professionals, along with the trade associations and other organizations described above, to help ensure that policymakers understand the company’s position on legislative and regulatory matters. Those matters cover a wide range of issues, including personal safety and security, property protection, civil justice reform, fraud prevention and regulatory modernization.

The major organizations that Allstate supported in 2017 include:

CONTRIBUTIONS TO CANDIDATES AND COMMITTEES

Corporate Contributions

Allstate contributed a little more than $323,000, representing 2.1% of its total public policy expenditures of approximately $15.2 million to state candidates for public office, political parties, political committees and other entities organized and operating under 26 U.S.C. Section 527.

ALLPAC and MIALLPAC Contributions

The Allstate Insurance Company Political Action Committee (ALLPAC) is a voluntary, nonpartisan political action committee (PAC) comprising eligible individual employees. Its personal contributions support candidates for federal and state office who support the competitive marketplace and understand and bring attention to the issues of importance to our industry generally and the Allstate group of companies specifically. In 2017, ALLPAC had 558 members, contributing a total of $354,561, with an average contribution of approximately $635 per participant.

ALLPAC contributions to candidates are governed by a Board of Directors composed of company employees. Candidates receiving PAC contributions must demonstrate one or all of the following: a commitment to free enterprise and a competitive marketplace, sound judgment on issues of concern to our industry, a supportive voting record, and viability as a candidate.  During 2017, ALLPAC contributed a total of $349,462 to state and federal candidates for public office as well as political committees.

The Michigan Allstate Insurance Company Political Action Committee (MIALLPAC) is a Michigan-only PAC funded by eligible Allstate employees, and abides by the same practices and procedures as ALLPAC. During 2017, MIALLPAC had 18 members who contributed a total of $16,602, with an average contribution of $922 per participant. MIALLPAC contributed a total of $4,500 to state candidates and political committees in 2017.

Grassroots Lobbying

Allstate leverages an intranet-based system, called Advocate for Good, as a means to engage interested agency owners and employees through grassroots activism on important public policy initiatives. Through the company’s grassroots platform, Allstate agency owners and employees can communicate directly with elected federal and state officials on public policy matters that are important to Allstate and our customers. Participation in Advocate for Good activism and relationship identification is completely voluntary.

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