From Good Hands to Boxing Gloves

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From Good Hands to Boxing Gloves
In 2008, Attorney David J. Berardinelli (may he
rest in peace) published From Good Hands to
Boxing Gloves. This book was earth-shattering as
it explored Allstates transformation after it
hired the consulting firm McKinsey and Company
(of Enron fame) in the early 1990s.
Bernardinelli had exclusive access to The
McKinsey Documents consulting presentations
upon which Allstate based its highly lucrative
and unethical practices. His books title using
boxing gloves was actually penned by McKinsey
when advising Allstate how to treat its
customers.
I was shocked when I read this book. On page 34
he discussed how Allstate was able to increase
its average net operating profits by 3,335
percent! (That is not a typo three thousand
three hundred thirty five percent). Using the
principals McKinsey developed and which they
called Claims Core Process Redesign (CCPD)
Allstate decreased claim valuations, delayed
payments, and doggedly litigated against anyone
who did not accept the companys low ball offers
of settlement.
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Allstate was a subsidiary of Sears. The CEO of
Sears who instituted the program was Edward
Liddy, an allegedly unadulterated thief, who,
after making millions at Sears with McKinsey
recommendations, went on to become Allstates
chairman. He milked over 350 million dollars from
Allstate due to a pay plan set up by McKinsey
that awarded him bonuses for the profit increases
Allstate experienced. During Liddys leadership
at Allstate, he oversaw that companys rejection
of Hurricane Katrina home loss claims, how those
costs were passed off on the American taxpayers
through the National Flood Insurance Fund, and
how Allstate and Liddy profited by passing off
the losses to taxpayers. Where did Liddy end up?
The last I heard of him occurred when he attended
a congressional committee to explain why he
thought it adequate to pay 165 million in
Obamas federal bailout money from American
taxpayers to his employees in the form of
bonuses. I loved the book and bought several
cases to distribute to clients as Christmas
presents in 2009. They loved it as well and I
saved just one copy for myself. Quite recently I
was having a discussion with a client about
Allstate and told her about the book. I located
my copy and read some of the notes I had penned
in the book. She asked for a copy and I went
looking for one but I could not find it so I went
to Amazon. Could you possibly guess how much a
copy of From Good Hands to Boxing Gloves costs
now? You wont believe it 270.24 for new and
143.22 for a used copy. Obviously someone has
been buying up copies of that book. In the
meantime, McKinsey and company went on to advise
OTHER insurers how to increase their profits and
that is where we are now. Still, if you get a
copy you will see the importance of having an
advocate on your side when you have an insurance
claim and that is what we do. We have to follow
the fine print of the policy but an article in
The Dallas Morning News discussed how, with an
attorney or public adjuster on your side, state
compiled stats show a consumer could receive
between three and four times more in insurance
payments.