ACCOUNTING CASE COMPETITION

Accounting Case Competition challenges members to analyze a comprehensive case that involving key areas of accounting, such as financial, managerial, intermediate, tax accounting, auditing & internal controls, ethics & professional standards. Members evaluate the case and present their findings and recommendations to a panel of judges, demonstrating technical knowledge, critical thinking, and professional communication.

OVERVIEW

Division: Collegiate
Type: Team of 1, 2, 3 or 4 members
Event Category: Case Competition
Elements: Presentation with a Topic
Presentation Time: 3-minute set-up time, 10-minute presentation time ( a one-minute warning will be provided), 5-minute question & answer time
Important: Time allocations are exclusive. The presentation must begin immediately after the 3-minute set-up time concludes. Time may not be shifted between segments. Competitors will not interact with judges during the set-up period.
Educational Alignments
Items Competitor Must Provide: Technology & presentation items; Photo Identification; Conference-provided nametag; Attire that meets the Florida FBLA Dress Code.

Items FBLA Must Provide: Table

2026-2027 Case Study

The business entity should not be contacted for additional information.  This case competition is for educational purposes only, offering a real-world scenario to help FBLA Collegiate members develop critical reasoning and casing skills. These skills can be applied to careers like consulting, corporate accounting, audit, and financial consulting, etc. The case needs to be solved with independent research using publicly available information and your own business acumen skills. This year’s case competition was created in partnership with CaseBasix.

Overview and Background Information
Client: The Allstate Corporation
Project: Evaluating a Major Investment in AI-Powered Claims Automation

Founded in 1931 and headquartered in Northbrook, Illinois, The Allstate Corporation (NYSE: ALL) is one of the largest publicly held personal-lines insurers in the United States, best known for its “You’re in good hands” promise and its nationwide network of local agents. In 2024 the company reported roughly $64 billion in total revenue and about $4.6 billion in net income, and it employs on the order of 53,000 people. Allstate has built its reputation on personal, relationship-based protection across auto, home, and other personal insurance lines. In recent years it has pursued its “Transformative Growth” strategy, reengineering its business model, cost structure, and technology to make protection more affordable, simple, and connected. Central to that effort is a growing investment in artificial intelligence, including its Allstate Large Language Intelligent Ecosystem (ALLIE), which the company has begun using to automate claims communications at scale. As larger competitors and direct-to-consumer insurers lean harder into automation to settle claims faster and at lower cost, Allstate’s leadership must decide how aggressively to scale AI across its core claims operations without eroding the human, personal-service culture that defines its brand. 

To ground the analysis, the snapshot below outlines the workforce, platform economics, financial position, and stakeholder views your team should weigh. Figures are illustrative and should be confirmed against Allstate’s public filings. 

Claims Organization Snapshot
The initiative would touch Allstate’s core claims value chain. An illustrative view of the roughly 15,000 claims-organization roles most affected is below: 

  • Claims Leadership & Strategy: set claims policy, govern vendors, and oversee complex and catastrophe claims (~600 roles). 

  • Field & Catastrophe Adjusters: inspect auto and property damage and resolve complex, high-severity claims (~4,900 roles). 

  • Claims Service Representatives: handle first notice of loss, intake, triage, documentation, and routine settlement, the roles most exposed to automation (~6,000 roles). 

  • Customer Care & Contact-Center Staff: manage policyholder communication throughout the life of a claim (~2,500 roles). 

  • Claims Technology, Data & IT: run the platforms, cybersecurity, and model monitoring behind claims (~1,000 roles). 

    The ALLIE-Powered Automation Platform

    Direct-to-consumer insurers and insurtech competitors have used automation to settle claims faster and at lower cost. The proposed platform, an enterprise expansion of Allstate’s ALLIE ecosystem supplied by an established vendor, is projected to: 

  • Automate roughly 60% of routine claims intake, triage, and documentation. 

  • Reduce average claim cycle time by about 35%. 

  • Lower loss-adjustment (claims-handling) expense by about 20%. 

  • Improve fraud-detection and data-accuracy rates by about 25%. 

  • Carry ongoing model-operations and maintenance costs of roughly $22 million per year. 

    Implementation Requirement

    Realizing those benefits would require:

  • A roughly $180 million upfront investment, financed through debt or equity. 

  • An estimated nine-month enterprise rollout and training period, reducing claims productivity by about 10% during the transition. 

  • Redeployment or reduction of a share of routine claims-handling roles over the following two to three years. 

    Financial Snapshot 

    Metric  FY 2026  FY 2025  Change 

    Total revenue  $64.1 billion $57.1 billion +12.3%

    Net income (loss) $ 4.6 billion $(0.3) billion Return to profit
    to common
    shareholders     

    Property-Liability 94.9% 104.5% 9.6 pts better
    combined ratio     

    Cash and invested ~$70 billion ~$66 billion  +6%
    assets     

    Debt-to-equity ~0.4 : 1  ~0.5 : 1 Improved
    ratio     

    Figures are approximate, reflect Allstate’s publicly reported results, and should be confirmed against the company’s most recent 10-K filing. 

    Stakeholder Feedback

    Stakeholder Group Representative Comments

    Executive & Claims Leadership “This is our chance to modernize claims
    and stay ahead of direct-to-consumer
    rivals.”
    “Cycle-time and labor savings alone could
    cover the financing within a few years.”
    “Larger insurers and insurtechs are
    already scaling AI, we can’t fall behind.”

    Regional Claims Managers “AI could streamline claims but weaken
    the personal service our agents promise.”
    “We may hurt adjuster morale before we
    ever see the efficiency benefits.”
    “Claims are about judgment and
    empathy, not just data.”

    Claims Adjusters & Frontline Staff “If AI handles intake and triage, will our
    jobs disappear?”
    “Retraining sounds good, but only if we
    aren’t replaced afterward.”
    “Customers want a human voice after a
    loss.”
    Technology, Data, & IT “Cybersecurity and data-integrity
    protocols must come first.”
    “We’ll need major upgrades to support
    enterprise AI.”
    “Ongoing model monitoring and
    responsible-AI compliance are
    essential.”

    Specific Elements to Address
    CEO of The Allstate Corporation has engaged your team as part of its corporate finance and accounting team, supporting the Claims Operations and Treasury functions. 

    Allstate is weighing a roughly $180 million investment in an enterprise, AI-powered claims-automation platform, an expansion of its ALLIE ecosystem, that could automate a large share of routine claims intake, triage, documentation, and settlement work, cut costs, and speed settlements, while also carrying rollout downtime, financing, and workforce implications.  

    Leadership has asked your team to determine whether the investment will strengthen Allstate’s long-term financial stability and customer relationships or put its culture and reputation for personal, human service at risk, and to recommend whether the company should… 

    • accept the full investment, or 

    • delay it pending a limited pilot, or  

    • reject it to preserve the current high-touch claims model. 

     Before you begin, take time to understand the sector you will be working in. Click here to explore what the insurance industry entails and to build the context you will need to create a credible, data-driven recommendation. 

    Additional Note: Your analysis should draw on Allstate’s publicly available financial reports, its Transformative Growth strategy and ALLIE AI initiative, and the broader economics of the property-casualty insurance industry. It should also reflect the company’s “You’re in good hands” heritage of personal service, its focus on affordability and shareholder returns, and its disciplined approach to capital allocation. 

    Deliverables
    Your final presentation should include: 

    • Financial Viability & Pro Forma Statement: 

    • Estimate the profit and loss impact of adopting the AI claims-automation platform, including assumptions for cost savings, training downtime, maintenance, and financing. 

    • Prepare a pro forma income statement for the next fiscal year. 

    • Take reasonable assumptions so the projections are realistic and state them clearly. 

    • Financial Ratios & Cash Flow Analysis: 

    • Analyze at least two relevant financial ratios and their implications. 

    • Assess the cash-flow impact of the ~$180 million investment and compare debt versus equity financing. 

    • Evaluate key non-financial KPIs, including claims quality, customer satisfaction, and employee morale. 

    • Strategic and AI Risks: 

    • Assess impacts on employees, customer relationships, personal-service reputation, and brand. 

    • Evaluate governance, data integrity, responsible-AI, and ethical considerations. 

    • Recommendation: 

    • Recommend one option: Accept, Delay or Reject supported by financial and non-financial analysis. 

    • Provide actionable next steps and risk-mitigation measures

REGULATIONS

State: Each chapter may enter one (1) individual or team composed of two, three, or four (2, 3, or 4) active local members. Participants must be on record in the FBLA national office as having paid dues by February 1 of the current school year.

When it has been determined that an individual or team will represent the charter at state competition, the appropriate forms must be received by the date specified in the SLC registration packet.

Competitor Eligibility Requirements

• FBLA membership dues are paid by 11:59 pm Eastern Time on February 1 of the current program year.

• Members must be registered for the SLC and pay the state conference registration fee to participate.

• Members must stay within the official FBLA housing block of the official FBLA hotel to compete.

• Each chapter may submit one individual or team in this event.

• On the state level, each member can compete in up to three different events in the following combinations: three objective tests OR two objective tests and one presentation OR two objective tests and one production or one objective test and two production OR one objective test, one presentation, and one production. Students may enter the Christopher Heider, Rob Kelleher, Who’s Who event, and one Chapter event in addition to their above chosen events.

• Only registered competitors are allowed to plan, research, prepare, and set up their presentations. Advisers and others may not assist.

• Each competitor must compete in all parts of an event for award eligibility.

• Picture identification (physical or digital: driver’s license, passport, state-issued identification, or school-issued identification) matching the conference nametag is required when checking in for competitive events.

• If competitors are late for their assigned presentation time, they will be allowed to compete if the judges allow it. If judges have left the competitive event area, it is no longer possible to compete.

• Some competitive events start prior to the Opening Session of SLC. The schedules for competitive events are displayed in the local time of the SLC location. Competitive event schedules cannot be changed.

• Participants must adhere to the dress code established by the Florida FBLA Board of Directors or they will not be permitted to participate in the competitive event.

EVENT ADMINISTRATION

• This event has a preliminary and final presentation round. If there are less than 15 teams registered, the event will proceed directly to the final presentation round.

Preliminary AND Final Presentation

Timing Structure

· Equipment Set-Up: 3 minutes—No interaction allowed with judges during this time.

· Presentation: 10 minutes (a one-minute warning will be provided)

· Question & Answer (Q&A): 5 minutes

· Important: Time allocations are exclusive. The presentation must begin immediately after the 3-minute set-up time concludes. Time may not be shifted between segments. Competitors will not interact with judges during the set-up period.

Venue & Format

· Presentations occur in-person at the State Leadership Conference (SLC).

· Competitors/teams are randomly assigned to presentation sections.

· Presentations may take place in a large, open area with a designated space of approximately 10' x 10', which includes a table and chairs for the judges. If conference space allows, presentations may take place in a separate room.

· The presentation is closed to conference attendees and audience.

· All schedules are posted in local time for the SLC host city.
· Schedule changes are not permitted.

Technology Guidelines

· Internet Access: Not provided
· Presentations must be delivered using one or two personal devices (laptop, tablet, mobile phone, or monitor approximately laptop-sized).

· If using two devices, one must face the judges and the other must face the presenters.

· Projectors and projector screens are not permitted, and competitors may not bring their own.

· Wireless slide advancers (e.g., presentation clickers or mice) are allowed.

· External speakers are not allowed; audio must come directly from the presenting device(s).

· Electricity will not be available.

Non-Technology Items

· Visual aids, samples, notes, and other physical materials related to the project may be used.

· Items may be placed on the provided table or on the judges table, if space allows.

· No items may be left with the judges following the presentation.

Restricted Items

· Animals, except for authorized service animals.

· Food, which may be used for display only and may not be consumed by judges.

· Links and QR codes, which may be shown but may not be scanned or clicked by judges at any time.

Research

· Information must be supported by credible, well-documented sources.

· Any use of copyrighted material, images, logos, or trademarks must be properly documented.

Team Expectations

· In team presentations, all members must actively participate in the delivery of the presentation.

National: If competing at national, see national guidelines: www.fbla.org.

SCORING

• Preliminary round scores are used to determine which competitors or teams advance to the final round from each section. If there are fewer than 15 competitors or teams, the event will proceed directly to the final presentation round.
• The final presentation score will determine winners.
• Judges must break ties.
• The decision of the judges is considered final. All announced results are final upon the conclusion of the State Leadership Conference and will not be changed after the conclusion of the State Leadership Conference.

AMERICANS WITH DISABILITIES ACT (ADA)

• FBLA complies with the Americans with Disabilities Act (ADA) by providing reasonable accommodations for competitors. Accommodation requests must be submitted through the conference registration system by the official registration deadline. All requests will be reviewed, and additional documentation may be required to determine eligibility and appropriate support.

RECORDING OF PRESENTATIONS

• No unauthorized audio or video recording devices will be allowed in any competitive event.

• Competitors in the events should be aware FBLA reserves the right to record any presentation for use in study or training materials.

PENALTY POINTS

• Competitors may be disqualified if they violate the Code of Conduct or the Honor Code.

AWARDS

State: The number of competitors will determine the number of winners. The maximum number of winners for each competitive event is four.

National: The number of awards presented at the National Leadership Conference is determined by judges and/or number of entries.  The maximum number will be ten.