Advocacy—using our leadership position to take a stand on behalf of our customers and consumers in general—is fundamental to our progress as an enterprise. The economic, environmental and social value we create is often defined by the regulatory and policy boundaries within which we operate. Having a voice in determining those boundaries, therefore, is of interest to all Allstate stakeholders. Specifically, we choose to build our advocacy campaign on issues regarding driver safety (particularly teens), automotive safety, catastrophe preparedness, modernization of insurance regulation and many other issues of importance to Allstate and our customers and stakeholders.

Allstate has dedicated legislative and regulatory lobbyists in each of its 14 business regions, as well as an elected officer in Washington D.C. to represent our policy agenda in the nation’s capital.

As an industry leader, Allstate continues to take a public stand on issues that are of vital interest to the insurance industry and consumers. Among our signature issues is the threat of mega-catastrophes, and we’re working to find a solution that will help better prepare and protect Americans.

Eight of the 10 biggest natural catastrophes in U.S. history have occurred in the last decade. Recent hurricane seasons have caused unprecedented damage and affected millions of Americans throughout the Gulf Coast and Florida. In addition, earthquakes pose an enormous threat. In the United States about 5,000 quakes can be felt each year. These infrequent but extraordinarily devastating natural catastrophes present serious risks for consumers, for insurers and for the economy. It’s one of the reasons insurance in catastrophe-prone areas is growing more expensive—and less available.

We believe America needs to be better prepared. Preparing and protecting America from catastrophe is larger than Allstate and even larger than the insurance industry. That’s why Allstate is a founding member of a coalition called ProtectingAmerica.org, which encourages collaboration between local, state and federal governments, consumers and the private sector. Since 2005, ProtectingAmerica.org has been working to advance a comprehensive, integrated solution to deal more effectively and efficiently with mega-catastrophes.

Since its formation, ProtectingAmerica.org has achieved several important milestones in which Allstate has played a key role, including:

• Building a coalition consisting of more than 300 member organizations, including emergency management officials, first responders, catastrophe relief experts, large and small businesses, nonprofit organizations and insurers;
• Raising awareness, supplying information to hundreds of media outlets and other public information sources;
• Educating policymakers across the country;
• Appearing before numerous legislative and related committees at the state and national levels; and
• Helping to craft and advance specific legislative proposals that will advance this cause.

Additionally, a senior member of Allstate's law and regulation department serves as national director of ProtectingAmerica.org, working with the co-chairmen of the coalition, James Lee Witt, former FEMA director, and Admiral James Loy, former Commandant of the United States Coast Guard and deputy secretary of the Department of Homeland Security.

Allstate and ProtectingAmerica.org achieved a major milestone in November 2007 when the U.S. House of Representatives passed the Homeowners Defense Act, a bill that would help to create a public-private partnership to address the impact of large natural catastrophes. This legislation would create a privately funded national backstop that would stand behind state catastrophe funds like the Florida Hurricane Catastrophe Fund and provide a stable and predictable source of coverage so that homeowners can repair, rebuild and recover in the aftermath of massive hurricanes, earthquakes and other catastrophic events. The bill is expected to be introduced to the U.S. Senate in 2008.

Allstate insures one out of every nine vehicles in the United States. For these customers and for the public, we promote safe driving through several different highly visible activities, including advertising, public relations, public policy advocacy and philanthropy—as well as through product features such as safe-driving discounts. Teen driving is of particular concern. Motor vehicle crashes are the number-one cause of death for teens in America. This represents a chronic public health issue that has yet to find a high enough place on the national public health agenda. Allstate and The Allstate Foundation are committed to identifying and implementing new approaches to raise awareness of this issue and ultimately, help lower the number of teen driving fatalities and injuries. We’ve also developed a whole set of teen driving online tools and resources.

In 2007, Allstate published and promoted its third annual “America’s Best Drivers Report,” which identifies the cities where the safest drivers reside, based on the likelihood of drivers in America’s 200 largest cities to experience a vehicle collision compared to the national average. (Sioux Falls, S.D., ranked safest in 2007.) The primary purpose of the study is to promote public discussion of safe driving by sharing data on motorists’ driving habits. Our intention is to help shed light on communities with drivers who could be more tolerant and attentive behind the wheel, as well as to provide a platform to recognize cities with drivers that have collectively improved over time. In 2007, Allstate’s best drivers report included a new category recognizing “America’s Most-Improved Motorists.”

Nearly 80 million Americans will be entering their golden years in the next two decades. Unfortunately, many of these people will outlive their savings. How will our nation make sure its citizens have enough money to retire? As a financial services leader, Allstate is taking a stand on this issue because retirement funding is not only pertinent to the industry, but critical to the livelihood of our country. Allstate believes that government, business and individuals should all play a role in helping to avert a potential retirement savings crisis.

In recognition of the fact that political issues are important and affect Allstate and its business operations every day, Allstate is committed to participating in the political process in a responsible way that is in the best interests of Allstate, its stockholders and its customers.

Allstate and its employees participate in the political process by making financial contributions to elected officials who share our belief in maintaining a competitive marketplace. Our Board of Directors has developed a policy on political contributions for the company, which can be found on the Corporate Governance portion of our Web site.

Allstate also maintains a political action committee known as ALLPAC (Allstate Insurance Company Political Action Committee). This is a voluntary program, funded by a segment of Allstate employees. Historically, ALLPAC contributes to officials and candidates representing both major parties. In the 2007-2008 election cycle, ALLPAC contributed $473,950 to 575 candidates (as of 4/1/08).