Allstate withdraws commercial coverage in some states

Allstate has been informing state insurance departments about its intention to no longer offer commercial coverage including auto and other products such as inland marine and liability.

“The reason for withdrawal is to retire outdated and cost-inefficient legacy technology to enable a shift in focus toward modernized products and platforms that will optimize the product and experience for our valued customers,” the company explained in one of the filings.

So far, Allstate filed withdrawal notices in AZ, ID, MT, VA, ME, NC, MI, KS, RI, WI, OK, OR, CT, AR, and SC, impacting around 25k policies which will not be renewed.

Last November, Allstate announced an investment and strategic partnership with Next Insurance. As part of the partnership, Next will provide its products to Allstate customers and the companies will co-develop commercial auto products.