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Tuesday, February 07, 2006

Another Message 

Allstate Corp. announced that it will no longer insure homes built close to the water in the New York area because of possible damage from hurricanes. Allstate's action was a clear message that it cannot handle any more storms like Katrina and the damage it wrought on the Gulf Coast. It was also a message to householders who live by the ocean. That message: "You are on your own." Of course, householders will get insurance coverage. They will pay more for it from someone else.

Allstate's action might look selfish to some, but it is courageous to others. We have known for decades that building on coastlines was dangerous, but no one would stop it. And, when there was major damage, homeowners were allowed to rebuild again only to watch their homes swept away in a few years.

Allstate's action is a common-sense stand, it seems to me, that private industry should not have to backstop foolish choices. Good PR sometimes requires one to take an unpopular position. I have no doubt Allstate is going to lose even more business in New York because of its decision, but that is better in the short run than bankruptcy in the long run.

Comments:
Dear Mr. Horton,
I am a junior at Southern Methodist University studying Corporate Communications and Public Affairs. I came across your blog today and I am really interested in your opinions on Public Relations. I am in a class right now where we are studying blogging and how it is affecting the PR world. I was wondering if you have any stories or tips you could share with me about getting clients good exposure. What do you think are the best, cutting edge ways for "getting ink"? I would love to hear from you and I would really appreciate any opinions or comments you may have about this topic or any others. You can write me back on my own blog at www.beccaburnitt.blogspot.com. Also, please feel free to check out our class blog at www.smuccpaclass.blogspot.com. Thank you so much and I look foward to hearing from you!
 

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