Congress wanted to know whether policyholders were being harmed by Allstate’s quest for higher profits. In 2007, J. Robert Hunter, an insurance expert with the Consumer Federation of America, told members of the Senate Judiciary Committee that McKinsey’s advice was leading to lower claims payouts. Hunter urged the committee to examine whether hiring the same consultant—McKinsey—was tantamount to collusive behavior on the part of insurers, who have a limited exemption from antitrust laws. Few private-sector industries get such exemptions.
