Key PointsAllstate collects premiums up front and pays out claims in the future.The fewer claims the insurance company has to pay, the better its business does.10 stocks we like better than Allstate › Allstate (NYSE: ALL) is an insurance company. The insurance model is fairly simple when viewed at a high level. Essentially, Allstate collects insurance premiums up front and agrees to pay insurance claims in the future, if any arise. There will al…