Allstate backs taxpayer insurance pool (August 26, 2005)

A catastrophe insurance pool bolstered by taxpayers may be the best bet for US consumers, according to Allstate Corp.Natural and manmade disasters from hurricanes to flooding and explosions and even terrorism are inevitable yet the US private insurance system is vulnerable and most consumers do not know how to respond to disaster. In order to address the problem, Allstate’s president and coo Tom Wilson says a public insurance pool should be initiated.Catastrophe funds may help to keep insurance companies solvent and consumers protected in the face of mass disaster, he says. Pools would cover losses and charge premiums that cover the risk and this money would not be able to be touched by government agencies.In line with its support of responsible consumer catastrophe cleanup, the Allstate Foundation recently awarded a citizen group with a $100,000 grant to continue to train its program that aims to help citizens prepare for and respond to an emergency disaster. The grant will also aid the launch of a multi-media disaster preparedness public awareness campaign intended to encourage personal responsibility and volunteer service, in September National Disaster Preparedness Month. "Allstate believes the public and private sectors must partner together much more effectively in order to prepare for and recover from catastrophic disasters,” Wilson says.