Allstate is proposing to create new, divided companies for each brand we hold auto business with certain open injury claims under, Allstate, Encompass and Esurance in the state of Michigan. Existing and new business customers will not be affected. Learn about more in the FAQs below.
Auto claims division
The Illinois Division Law, which went into effect in 2019, allows Illinois domiciled stock insurance companies to divide into two or more insurance companies and allocate assets and liabilities, including policy liabilities, between the resulting companies.
The new companies will separate existing Michigan Personal Injury Protection (PIP) liabilities associated with inactive business in Michigan and certain other related liabilities from active business in Michigan. On the effective date of the division, each new company will contain certain inactive PIP claims and certain other related liabilities as of December 31, 2019, for the applicable Allstate, Encompass and Esurance brands. There are no current plans for the new companies to write new business.
A recent change in Illinois law allows insurance companies to divide existing liabilities into more than one company to maintain a more efficient marketplace. This promotes a healthy and stable business environment, which allows us to better serve customers.
We are looking to complete this transaction effective April 1, 2021, subject to regulatory approval. All impacted Claimants and Policyholders will receive a letter explaining the change and notifying them of a public hearing held by the Illinois Department of Insurance. At the conclusion of the regulatory approval process, impacted Claimants will receive an additional notice confirming the division has been completed.
Allstate is committed to a seamless transition. There will be no change to how claims are handled or paid, and we will continue to ensure the same level of exceptional service.
Current Allstate policyholders will be unaffected by this transaction and will remain insured with their current Allstate company. There will be no changes to their policy terms or conditions.
Allstate Insurance Company, Allstate Indemnity Company, Allstate Property and Casualty Insurance Company, Allstate Fire and Casualty Insurance Company, Encompass Indemnity Company, Encompass Property & Casualty Companies, Esurance Insurance Company, and Esurance Property & Casualty Company are the dividing companies that will allocate their open injury claims incurred under former Michigan auto policies and certain related liabilities to new companies for the Allstate, Encompass and Esurance brands, respectively.
Allstate is committed to a seamless transition for claimants. There is no action required by claimants.
The names of the new companies in Michigan for each brand that we hold auto business under Allstate, Encompass and Esurance will be as follows:
- Previously with Allstate → ASMI Auto Insurance Company
- Previously with Encompass → ECMI Auto Insurance Company
- Previously with Esurance → ESMI Auto Insurance Company
The new companies will be organized as Illinois domestic stock insurance companies and will all be licensed in the state of Michigan.
No. We are committed to providing Michigan agency owners with a full suite of competitive products to offer to customers, including a robust auto product in Michigan.
Copies of the Plans of Division are available for your review at Illinois Department of Insurance's website. Additionally, you may access the plan of Division for Allstate by clicking the links below.
Yes. The Illinois Department of Insurance will hold a consolidated public hearing on the Allstate, Encompass and Esurance Plans of Division to obtain information to confirm that the statutory criteria for approval of the Division is met.
The hearing also provides an opportunity for public comment.
The public hearing is scheduled for March 3rd and 4th and will be conducted using a virtual meeting program.
Additional information related to the hearing will be posted on the Illinois Department of Insurance's website. Additionally, you may access a copy of the witness list, exhibit list and witness statements by clicking the links below.