Developing and providing products is a shared responsibility of multiple teams, including Product, Innovation, Marketing and Technology. The executive leadership team, especially the chief marketing officer, oversees our approach to developing and providing customer-centric and responsible products.
Policies and practices
Our purpose is to empower customers with protection to help them achieve their hopes and dreams. We also help society, by making our products more accessible and affordable, in addition to fostering safer habits.
Advancements in data collection and technology help us offer competitive prices. Allstate agents and staff build personal relationships with customers to offer the best insurance solutions at the right price, balancing risks and costs.
We base our homeowners insurance pricing on external factors such as historical weather patterns for the area, the cost of labor and building materials, the home’s age and homeowner policy preferences such as deductible amount.
Allstate offers several ways to reduce customers’ premiums, including discounts for insuring their car and home with Allstate, maintaining a safe driving record and using Drivewise to reward and encourage safe driving behavior. Customers may get credit for installing safety features like smoke detectors and home security systems.
We’re expanding customer access to our products by broadening distribution and incorporating a direct-to-consumer model. We integrated Esurance into Allstate brand to create Allstate Direct, expanding product availability in the direct-to-consumer channel. Additionally, we released a new Allstate mobile app, which saw a 40% increase in monthly active users.
Proprietary auto insurance risk scores
For auto insurance, we use information such as driving records, location and vehicle type to provide accurate and competitive prices. Over time, we expect to use more data from our telematics tools to develop auto insurance prices. Our telematics offerings reward customers with lower premiums for safe driving. By analyzing a customer’s average driving patterns, we can promote better public safety habits like following the speed limit and avoiding hard braking.
Given an unprecedented decline in driving due to the COVID-19 pandemic, we provided auto insurance customers a Shelter-in-Place Payback representing approximately $1 billion, with most customers receiving 15% of their monthly premium back in April, May and June 2020. As we began to see a decline in auto accidents in March 2020, we immediately provided customers a payback and were the first U.S. insurer to announce this program. Since then, we have reduced auto insurance prices in the majority of states.
As everyone’s lives became more digital, Allstate offered free identity protection to all U.S. residents starting in April and through the end of the year. We helped over 200,000 Americans protect their identity online in 2020. To limit in-person contact when possible, we increased the use of virtual tools like QuickFoto Claim® and Virtual Assist®, which allow for a simple, fast and safe claims handling process for customers and employees.
For auto and property customers who needed payment relief, we offer a Special Payment Plan that allowed them to delay payments for 60 days without penalty. They could also pay what they could afford during the 60-day period, with no minimum required. We also took action so customers using the Special Payment Plan during pandemic shutdowns didn’t lose discounts like Easy Pay and Responsible Payer even though they didn’t meet the criteria to participate.
During shelter-in-place orders and states of emergency, we extended coverage to protect customers using their personal car or motorcycle to deliver food, medicine or other commercial goods, activities that are typically excluded by standard personal auto policies.
Programs and performance
With the free, user-friendly QuickFoto Claim app, a customer can take photos of a drivable car’s damage and submit them to our highly trained auto technicians, who can remotely calculate the estimated damage.
Using telematics, the science of collecting data through sensors in a vehicle, we’ve redefined insurance. Our Drivewise product personalizes the auto experience and provides customers insights into their behavior to promote and reward safe driving. Drivewise is available in 50 states and the District of Columbia. Allstate was the first major U.S. insurer to bring to market a mobile app to collect data for a telematics-based insurance program. As of Dec. 31, 2020, Allstate had over 1.7 million Drivewise connections.
Crash detection (a Drivewise feature)
Allstate launched free Crash Detection Services through Drivewise. It’s a free safety feature available through the Allstate Mobile app. Using telematics and the sensors in a smartphone, the app can detect when a customer may have been involved in a serious car crash as a passenger or a driver. The Allstate Mobile app offers the customer help and quick access to emergency assistance, claims and Allstate Roadside.
Allstate is the only top insurance company offering this benefit to anyone, not just our customers, with no additional equipment needed. We want to give people peace of mind and make the roads safer. All iOS users with the Allstate Mobile app received Crash Detection on Dec. 20, 2020, and all Android users on Jan. 29, 2021.
Pay-per-mile coverage is auto insurance based primarily on the miles a customer drives. Consumers want personalized products and services that give them more control over cost and usage, and we’re staying on top of this trend. Milewise, Allstate’s pay-per-mile auto insurance, is available in 17 states and will expand in the coming year. Milewise gives customers more control over their auto insurance costs with the same great coverage and claim service from Allstate. As customers looked for more flexible products during the pandemic, Milewise saw 442% year-over-year growth. With companies offering their workers continued telecommuting options, customers are gravitating toward insurance that can accommodate their new driving habits.
Allstate Business Insurance offers its business owners policy customers an opportunity to purchase eight types of first-party and third-party technology-focused coverages. Cyber coverages are essential for business owners, because personal information held by a business can be lost, stolen or accidentally released. A business may need help with the financial and legal burden, as well as the service obligations to affected individuals. All 50 states plus the District of Columbia now have laws requiring notification to individuals whose personal information is lost or stolen, and 29% of small businesses have had at least one data breach. The cyber coverage is available in 49 states in different bundle offerings to meet the needs of various classes of business.
Allstate Identity Protection
Allstate Identity Protection (AIP) is reinventing privacy and identity protection by giving consumers the tools to see, control and protect their digital lives. In 2020, as our lives became more digital, Allstate offered free Allstate Identity Protection services to all U.S. residents, not just existing Allstate customers, starting in April and extending through the end of the year. We helped over 200,000 Americans protect their identity, and 5% of those converted to paying identity protection subscriptions in 2021. In December 2020, we launched the Digital Footprint product integrated in the Allstate Mobile app. Any consumer, not just Allstate customers, can download and create an Allstate Mobile account and run a free Digital Footprint. For the first time, people can see where their data lives within all the online accounts they have created. Through Digital Footprint, consumers can unsubscribe from email communications and request that their data be deleted from organizations they no longer want to be associated with. Additionally, consumers get a simple summary of each account they have, along with the privacy and data sharing agreements they signed when creating those online accounts. This gives consumers the power to take back their digital lives.
Due to the growing and evolving types of identity fraud, some due to the COVID-19 pandemic, AIP handled a record number of identity remediation cases on behalf of customers. As Americans share more personal data online amid COVID-19, unemployment and tax fraud are on the rise and expected to continue to increase during 2021. Scammers are estimated to have already collected about $26 billion in fraudulent unemployment insurance claims, according to the Department of Labor. After the pandemic started, Allstate Identity Protection saw unemployment fraud spike more than 17,000% from 2019 to 2020, while tax fraud grew 258%.
This is a powerful contrast to pre-pandemic times, when unemployment fraud was a sliver of the overall identity theft picture. Today, it’s one of the most prevalent types of fraud we resolve for customers. It also illustrates how quickly cybercriminals adapt to new vulnerabilities, which is why it’s so important for consumers to have strong identity protection before fraud can occur. We managed the spike in cases effectively and yielded strong satisfaction scores post-remediation of 97%.
The employee benefits business at AIP remains strong. During open enrollment season leading into 2021, about 950 new employer clients were onboarded, and approximately 200,000 new plans went into effect.
Sharing economy coverage
With the rapid growth of consumers using personal cars and homes to participate in the sharing economy, Allstate moved quickly to address their needs.
- Ride for Hire® provides Allstate customers who drive for companies like Uber and Lyft an optional endorsement to help fill the gap between their personal auto policy coverage and what’s provided by the transportation network company’s commercial policy.
- HostAdvantage® provides Allstate customers who rent out their homes on sites like Airbnb and HomeAway coverage options to help with their personal property protection gaps.
As communities plan for a low-carbon economy, ride-sharing plays a critical role. By providing insurance for ride-share operators and car-sharing services, Allstate helps enable the low-carbon transition and fills an insurance gap in a way many competitors don’t. Additionally, the Transportation Expense coverage offered with auto policies that previously provided rental cars for customers after an accident was expanded to include reimbursement for public transportation or ride-sharing.
Avail connects drivers and car owners, providing a protected car-sharing experience conveniently located where people live, work and travel.
Arity is a mobility data and analytics company that turns billions of miles of driving data into predictive insights to make transportation safer and improve the accuracy of auto insurance pricing.
In 2020, Allstate implemented the use of Routely, a telematics application used to capture driving behaviors and reward customers for safe driving. As of Dec. 31, 2020, Routely is available in 18 states.
Environmentally responsible products
Paper use is one of the most significant factors in our environmental footprint. Allstate offers paperless billing and up to a 10% discount for customers who go paperless. Through this discount, we return the savings from less paper use to the customer, in addition to demonstrating our commitment to environmental stewardship and supporting customer retention. In 2020, 61.6% of claim payment transactions were digital, up 19% from 2019.
We offer policyholders the Homeowners Policy Green Improvement Reimbursement Endorsement. If purchased, it allows a customer to replace damaged or destroyed appliances and equipment with more energy-efficient items and be reimbursed by Allstate for the additional cost. The reimbursement applies to certain categories of Energy Star®-rated products such as: washers and refrigerators; computers and other electronics; heating and cooling equipment; and certain plumbing and building equipment. These products are designed to save electricity or water, reducing a home’s environmental impact while lowering homeowners’ utility bills. The Homeowners Policy Green Improvement Reimbursement Endorsement is available in most states.