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Josh Hawley Asks Allstate Executive To Straight-Up Apologize To Unhappy Customer
Forbes Breaking News
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5/27/2025
At a Senate Homeland Security Committee hearing prior to the Congressional recess, Sen. Josh Hawley (R-MO) questioned to Mike Fiato, an Allstate executive, and asked him to apologize to property owner Natalia Migal, an unhappy customer.
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00:00
Thank you very much to both of the witnesses we will now have five minute
00:05
rounds of questions we'll do a couple of rounds here and I will start let me
00:10
just start with you Mr. Fiato so I take it from your statement just now that you
00:13
don't have any regrets about Ms. Miguel's case Mr. Keating apologized to Mr.
00:18
Vertel and promised to work with him resolve his case thank you for that Mr.
00:21
Keating I didn't hear anything to that extent from you Mr. Fiato so you think
00:25
all state handled it just fine no I stated in my statement that I regret
00:30
that Ms. Miguel is unhappy with the yeah well that's like saying I'm sorry you're
00:34
unhappy right that's I apologize but I don't apologize would you like to
00:37
apologize to her now maybe I just misunderstood her I would like to say
00:41
is Ms. Miguel here you go ahead I'm sure she's watching I'd like to say I I want
00:48
to make sure that we get your claim resolved to your satisfaction and if
00:52
there's additional information or things that we can do to continue to work
00:55
to you with you we'll do that so I noticed that you said in your written
01:01
testimony you just repeated it here let me make sure I get this right I'm going
01:05
to quote you now we live and breathe our motto our customers worst day needs to
01:08
be our best I have to tell you Mr. Fiato based on the testimony I've heard
01:12
today based on the witness statements I've taken for witnesses it sounds like
01:15
to me that it really ought to be amended to say that our customers worst day is
01:19
your big profit opportunity I mean we've just heard testimony here sworn
01:23
testimony from multiple adjusters that your company ordered them to delete or
01:27
alter damage estimates to reduce payouts and to make you profits it sounds to me
01:33
like you're running a system of institutionalized fraud yeah that would
01:36
that would be incorrect senator that's not what we do so you have never ordered
01:40
y'all state has never asked an adjuster to change an assessment on their report
01:45
when we review an adjuster's estimate most often for authority requests so most
01:52
adjusters have an amount of financial authority that they can settle claims up
01:57
to without having to no wait a minute that's that's not what they testified to
01:59
that's not what they just testified to you just heard sworn testimony from
02:03
multiple adjusters and they said it happened one adjuster had only ever worked for
02:08
you over years in the industry and he said he was repeatedly directed by you by your company
02:14
allstate to change factual findings to delete material and his reports to alter his reports
02:22
to make them factually incorrect all with the purpose of driving down the award and padding
02:27
your profits I disagree with his statement well you know I have to notice that I mean your
02:33
profits have never been better I mean they're really quite extraordinary fiscal year 24 allstate
02:38
had 64 billion dollars in revenue that's 12 percent above the previous year you made 4.6 billion
02:45
dollars in profits and your CEO Tom Wilson last year was paid 26 million dollars now Miss Miguel
02:54
can't get her claim paid out but Tom Wilson whoever the heck he is gets 26 million dollars I mean
03:02
that's really extraordinary do you just not do you not have the money to pay people like Miss Miguel
03:07
why is she not a priority but Tom Wilson salary is we we've paid Miss Miguel's claim no you didn't
03:14
you have given her a a paltry sum your own adjusters you said in your testimony just a second ago you sent
03:20
out an adjuster in fact you sent out three and two of those adjusters testified just now under oath
03:25
that your company ordered them to alter their reports against their will contrary to their advice
03:31
and in fact to render them factually inaccurate I that's extraordinary I disagree with this you
03:36
disagree that's what they said I disagree that that's our our process so they're just they're
03:42
they're just they're lying they're lying that's what you're saying I can tell you that for example
03:46
Mr. Schroeder wrote 15 estimates for for us none of those were reviewed by all state
03:52
listen to another listen to another test and piece of testimony from another witness this is a
03:59
whistleblower report that has come in to us this person says I've dedicated my entire adult life to
04:04
the claims adjusting world in numerous roles I worked for pilot and all state for 12 years
04:09
as an independent adjuster I work claims all over the country regularly throughout the years and I have
04:15
watched the progression and controlling nature of claims worsen progressively all state created an
04:21
internal review team with the sole purpose of making sure claims were paid as low as possible
04:26
all state reviewers instructed adjusters to alter and delete factual findings in their estimates to
04:32
drive down the cost of the claim the alterations and deletions were often factually wrong during
04:38
hurricane Isaac in 2012 2012 an email was sent out that no adjuster could buy a roof no matter the damage
04:46
present this looks like a pattern this is someone who's not even involved in this case in
04:51
hurricane helene we've heard from person after person all this testimony is on the record it
04:56
sounds to me like your company is running a racket and you're making more than you ever have
05:01
those are not our processes senator but multiple people have testified that they are in fact this
05:07
really all goes back to a strategy that your company pioneered with the mackenzie company back
05:11
in the 90s isn't that right let's just take a look here at what mackenzie advised all state as early
05:17
as the 1990s you went to mackenzie and asked them how can we get rich and mackenzie gave you this
05:23
advice sit and wait they said delay delay delay it's a zero-sum economic game there can only be
05:30
one winner and the winner is going to be all state it's not going to be the policy holders and then
05:33
good hands or boxing gloves mackenzie suggests all state make a low offer on a claim like you did to
05:39
miss miguel and then if the policy owner has the temerity to protest you go after him hard just like you did
05:46
to her her home hasn't had one lick of work done on it not one lick and yet you sit here today and
05:54
say you're sorry she feels badly about it i mean this this is really your strategy is it not and
05:59
it's made your company just filthy rich that report is over 25 years old we've had you've implemented
06:05
it to the t in those 25 years we've had multiple departments of insurance uh indicate that this is not
06:11
uh an issue or or we're doing anything untowards what do you mean it's not an issue you're saying
06:18
that you don't follow mackenzie's advice that's not the way we handle claims you've never done it this
06:23
way you didn't go and seek their advice i've been at all state for about a year and a half i can't speak
06:27
to what oh 25 years ago i see this all predates you you don't know anything about it i don't know
06:32
anything about the mackenzie oh of course of course right deny delay right it's the same tactics over
06:40
and over let me ask you do you ever engage in retaliation for employees who come before committees
06:46
like this one or who raise objections to what you're doing to the fraud that you're engaged in
06:50
would you ever retaliate it's a hypothetical question but the answer it's actually it's not
06:53
hypothetical but go ahead what's the answer would be of course not well we just heard sworn testimony
06:58
from mr millican that you have retaliated against him that he has been informed by all state
07:02
that he is not going to be doing any further work i see your your suits behind you are shaking your
07:07
heads no all state all state didn't have any communication we never had any communication
07:12
with mr millican on this subject you're under oath now just of the of of this specific we've
07:19
communicated with mr millican for many times he's worked for pilot oh it sounds like now we're
07:24
prevaricating no we're not now we're prevaricating so my question is have you retaliated against mr
07:29
millican of course not did you tell mr millican that he won't be doing any further cases with
07:33
all state not that i'm aware of not that you're aware of course not did you have you taken any
07:38
you are all say taking any adverse action against mr millican ever at all no have you done that has
07:43
all state ever done that against any other employee i can't answer that question i can only answer
07:49
what i've done no in fact you've been sued multiple times in court after court after court for
07:55
retaliation you've been sued for fraud successfully time after time after time mr fiatto i have to tell
08:02
you i i just i find your testimony absolutely stunning here today i can't believe after what
08:07
we've heard i can't believe after what miss miguel has been through that you would sit here and insist
08:11
that everything is fine and above board i can't believe that you this this pattern of fraud that
08:18
you would have nothing to say about and these outrageous profits i mean don't you think that
08:24
your policyholders deserve better than this i'm not sure what the question is senator don't you
08:30
think they deserve better than what you're giving them that's my question i think we do our best to
08:35
service our policyholders every day oh i think you do your best to make profits and i think you're
08:40
very good at it and i think your policyholders are getting the shaft senator kim
08:44
like bombs too good at it and i think you're having to spend time in China with public", so that's all
09:03
you can only see the thing on the limous wind because there is some street tragedy in this média win and
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