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Sunday, August 15, 2010

McKinsey & Company - Wikipedia, the free encyclopedia

McKinsey & Company - Wikipedia, the free encyclopedia: "McKinsey is a named defendant in Hurricane Katrina litigation. Louisiana Attorney General Charles Foti's suit accuses McKinsey of being the 'architect' of sweeping changes in the insurance industry, starting in the 1980s. The suit alleges McKinsey advised insurers to 'stop 'premium leakage' by undervaluing claims using the tactics of 'deny, delay, and defend'.[21]
Several civil suits have been filed against home insurance and vehicle insurance companies after the insurers were advised by McKinsey, and allegedly paid the insured parties significantly less than the actual value of the damage.[22] McKinsey was cited in a February 2007 CNN article with developing controversial car insurance practices, used by State Farm and Allstate in the mid-1990s to avoid paying claims involving a soft tissue injury. This is done, the article alleges, because these types of injuries are hard to verify by X-ray or other common examination methods other than surgery.[23]"

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