There are over 1000 agencies for sale, considering a sale or considering TPP while this clown show continues. Very sad state of affairs across the country and many state zero confidence in Upper management.
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Home office most certainly does not hate TPP, ALL pays less commission.
Regions do not like it as it affects their agency head count and therefore their bonus. Decisions have been made to benefit the region that in the end cost ALL far more $$ than necessary.
Now you know why the regions are being dismantled. The four selected zone captains will do the bidding of home office and will operate in tandem.
The company hates to have agents TPP, if you have been in any meetings where they talk about this you think an agent doing a TPP is the end of the world. I can tell you that even right now they are pushing FSL's hard to avoid any agent TPP.
Consider that if ISP becomes mandatory the book is devalued by 20%. It is little wonder why an agent would want to seel while in control of his/her own destiny
It is substantially more cost efficient in the long run for the company to have active agents TPP vs. selling.
ALL can either keep those policies in-house or assign them and pay 3 or 4% (I forget the amount) to the agent who receives the policies. If the book sells, ALL continues to pay 9% or substantially more if the policies are in an ECP book.
It is not hard to see the long term goal of ALL, as they have made it very clear with their actions while perhaps not so much words. National General opens the door to the independent channel with a great platform and people who know the business (9k employees I believe). ALL clearly does not know the indie channel, why re-invent the wheel when you can just buy it?
So, if you work on the indie side at ALL? Have a nice day building your career elsewhere.
Work with direct agents (NEA)? Have nice day building your career elsewhere.
Work in a call center? Come on in, we could use ya.
Agents screwed themselves a long time ago with their greedy corner cutting and unethical arrogant handling of their business. Now it is starting to catch up with them. Geico and Progressive have shown that constantly battling with petchulant children is not as profitable than doing it direct themselves.
What would you expect? Management has no respect for agents. They keep on screwing them.
Being on the side that works with agents selling this is not news, since there is not a start up program the regions and FSL's were pushed to talk to each agent and ask them if they would be open to consider selling since FSL's are rated on on how their agents do and how many agency sales they have. This has led to agents telling the FSL's they would consider selling and even putting their book of business on PPC loans website, of course these same agents will only sell if they get a multiplier of 3-4 which no reasonable buyer would go for, I know about half the agencies "for sale" in my region have rejected every candidate that has tried to negotiate with them.
Now that the FSL's are on the chopping block most don't care about looking for new agency owners.
This is not news.
The 34000 corporate book is coming back and eventually CCC and Allstate.com bound business will no longer be assigned to field agencies but will remain in the corporate 34000 book. Agents will be expected to bind new business on their own and will not get corporate bound business credit.
Not to mention the uncertainty of the telematics partnership with Ford. Milewise being used in conjunction with automakers/Fords 2020 models announced in March. How long until you can buy your insurance on the cars touch screen via Ford Pass?
What is ECP?
Yes, there are a LARGE number of exclusive agencies for sale countrywide. Let’s not get started on the ECP model that has driven many of these agents out the door.
Considering the communication that went out today showing lower premiums and additional discounts for binding direct/company new business with CCC and corporate website over agency bound business and the rumors of a retooling down of compensation levels for agency bound business for 2021 it would probably be for the best for agents to look at getting out while there is still value to their book.