June Newsletter 2025
Let’s stop pretending. This industry isn’t broken. It’s working exactly as intended: to profit off your pain and cheat you out of what you’re owed. The truth has been exposed, and it’s uglier than most people could imagine. In a recent Senate hearing, the spotlight turned to Allstate, and what came out wasn’t just negligence. It was a calculated, institutional system designed to defraud policyholders while executives cash in.
Senator Josh Hawley didn’t pull any punches. He called out Allstate’s representative directly, saying, “Your company is running a racket. You’re making more than you ever have,” and “You punish your policyholders. You rip off the public. You rip off the federal government.” And he’s right. Allstate has created internal review teams whose only purpose is to slash claim payouts. Adjusters have testified under oath that they were ordered to alter and delete factual findings, manipulate reports, and submit intentionally inaccurate estimates, all for the benefit of the company’s bottom line. These weren’t isolated events. This was routine. This was company policy.
One former adjuster, who worked exclusively for Allstate for years, testified that he was repeatedly instructed to change his reports and remove critical information. Another revealed that during Hurricane Isaac, an internal email directive made it clear that no adjuster was allowed to approve a roof replacement regardless of the actual damage. When these damning facts were laid out in front of the company, their response was to simply disagree. That’s it. No accountability. Just more evasion. When asked about executive compensation, the Allstate representative refused to answer even though it’s public knowledge that their CEO took home over $26 million last year.
And it’s not just about lying to clients. These companies systematically offload costs onto federal programs like FEMA, forcing taxpayers to shoulder the burden so insurers can maintain record profits. It’s not a bug in the system. It is the system. And it’s working exactly how it was designed to: maximize corporate earnings by minimizing what people are rightfully owed.
This isn’t just Allstate. This is the model. Whether it’s Allstate, State Farm, or any major carrier, the game is the same: delay, deny, underpay and then repeat. It’s not about fair settlements. It’s not about recovery. It’s about profit. And while they’re padding executive paychecks, policyholders are left battling bureaucracy, begging for basic coverage, and struggling to rebuild what they lost.
“The industry is playing on an unfair and unlevel playing field", says Richard Farrand, owner of Farrand Claim Consulting. "Anyone who believes the industry is 'on your side' or 'you're in good hands' or 'they are a good neighbor' is crazy. The fight to be brought whole is a street fight, and it's not fair, and you better have a strategy.”
If you think they’ll do the right thing on their own, think again. They won’t. They never have.
Richard says, "The insurance industry isn’t concerned about losing market share and for good reason. With most major carriers operating in lockstep, raising premiums, delaying or denying claims, and prioritizing profitability over policyholders, consumers have few meaningful alternatives. Bad publicity has little impact when systemic practices are widespread and normalized across the sector.
What we’re seeing is a deliberate holding pattern: carriers are stockpiling assets, investing heavily in commercial real estate, and reaping unprecedented profits, all while withholding payments from the very people they’re contracted to protect. This is no accident. It’s a calculated strategy to preserve capital and maximize returns, even at the expense of public trust.
I don’t begrudge the success. Profitability is not the problem. Lack of accountability is. Carriers should be held to a higher standard of transparency, regulation, and ethical conduct. At present, there’s virtually no meaningful oversight. Regulatory bodies are outpaced and under powered, leaving consumers exposed and unsupported.
The industry isn’t navigating change, it’s entrenching itself. Insurers aren’t adapting to anew reality; they’re weathering public scrutiny and waiting for it to pass. That should concern all of us. Because without enforceable standards and independent oversight, the imbalance between carrier power and consumer protection will only grow."
And that’s why you need someone in your corner who understands exactly how this game works and knows how to beat it.
Don’t let them get away with it. Don’t play the claim game. Fight back.
