In October of last year, Allstate launched a new line of homeowner’s insurance products in Oklahoma called House & Home. The company’s initiative was met with success and now the insurer is gearing up to launch these products in various states through 2014. The products became popular amongst consumers because it provided them with a sleuth of discounts and new deductible and coverage options. The insurer has also introduced a more simplified quoting process that uses external information to fill out applications more quickly.
As Allstate introduces these new insurance policies in other states, the insurer will be looking to make changes to the way these policies deal with roofing coverage. The insurer has been criticized in the past due to misprices roofing coverage in relation to risks posed by natural disasters. The insurer is looking for ways to make their risk pricing models more intuitive and hope to have a new system in place before these new policies become available in other states.
Allstate believes that launching these new products throughout the U.S. will help the company achieve its return on equity goal of 13% by 2014. This will depend largely on how consumers in states that are not pre-disposed to natural disasters react to these new products. Some may turn a blind eye, but Allstate believes that a wider range of insurance options for homeowners will be welcomed by most.
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