EA is being slowly eliminated. Wait until sales goals come out for 2021 and R3001 is revised for compensation. Only about 20% of EA's will sniff the goals and with far less compensation. Also agency services being rolled into CCC gradually all proof of the eventual goal of primarily direct with focus on low compensated IA's. EA's don't even realize that when they call ASIC that half the time they are now talking to CCC while IA's now have more specialized service means. Not to mention the new discount if customers bind with the CCC instead of agents. There could be no more writing on the wall. 2022 is target year for total EA elimination.
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If you review the investor call about the National General purchase, I think some of your comments and questions will be answered. Don't think the EA model will go away anytime soon, most of our premium comes from that channel. I think you will see comp changes in the coming years for sure. Bolstering our IA and direct channels is a strategic move to keep us relevant in the insurance business. There is certainly a lot of overlap and we are very top heavy.
ECP agents are the ones making a ton of money. Only to either get fired or can’t make the curve after a few years and leave broke. Some states are not meant to be growth states for a reason.
Oh by the way, you only have to sell 6, five months out of the year. Again, if you can’t do that you plain s— at your job and should be terminated
If you can’t sell 6 autos in a month you shouldn’t be an agent
Enforcing ABO at this time is just plain dumb.
Can you elaborate on ABO? My understanding is that ABO is expanding while they are making big changes elsewhere. It feels like their goal is to sell policies online and have call center insurance agents write policies and make changes so that they can micromanage and control them, unlike actual agents.
Some people really love the anonymity of the internet so they can make up any ol' thing and cause fear and discontent. I honestly don't know why!
OP is trying to stir the pot and piss people off. $50 says he / she isn't hitting the ABO and is fearing for his career.
Some Florida agent reached out to a senior leader to ask about rumors about comp going on. He tried to put the rumors to bed. Really? Like this guy is going to tell you specifically? Keep drinking kool aid
I doubt this is accurate, Allstate has been pushing the IA channel for years and it keeps failing, they have been trying new ways to get away from the EA channel and those have been failing as well, BDA comes to mind.
Why walk away from EA when that is the only thing that works?
I don't see this in the short term. Long term, 10 to 15 years..maybe. Right now too much is being held in premium by the EA's. Now are they going direct to try and increase their channels and perhaps wean away gradually? Yes I can see that. But companies like Allstate have short, medium and long term goals. This would be a way long term goal/direction in my opinion.
This original post is so misinformed. I'm no longer at ALL, but worked in the AIA channel there. EA is not being eliminated. Captive agents still own 46% of personal lines market share which is ~$153 billion dollars in annual premium. Allstate is the number 2 captive carrier behind State Farm. So according to this doltish poster, Allstate is just walking away from a $150B market where they are the number 2 company. Oh wait, that's just total personal lines premium. If you only want to look at the customers in the marketplace that have an Auto and own a Home; Captive agents have 77% market share of that $113B marketplace. All these channels have a place and piece of the market based on the different types of customers and their preferred shopping mechanism. Will it fluctuate over time between the three? Yes. Is any one of them going out of business? No. Allstate is actually smart to finally realize you have to play in all of them. Meet the customer where they want to shop.
My heart goes out to the people impacted by the coming RIF's. Can't believe TW would do a media tour on how corporations need to treat american workers better and then go this route versus retooling their existing people/assets to accomplish the same goal.
You trust Terrance? I don’t trust any of them.
I have no doubt that Allstate is going more direct and we have actually been told this is the direction of the company however there is no way thousands of exclusive agents are eliminated in 2 years. 5-10 years I can see.
This is completely opposite of what we were told by Terrance on a call just a week or so ago, there is a new startup program being reviewed to increase the brick and mortar footprint too.
Well - Shoot !! I just renewed my office phone lease for two years...