It seems like Allstate is shifting to virtual just like other companies but I’m wondering has anyone heard anything s out Independent Agents how much longer for them?
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Corporate bound business will no longer go to the book of field agents. Direct pricing is less that agency pricing. Compensation starting in 2021 will be much lower. Agents will be 100% responsible for building their Allstate new business book. Heard exclusive agents will no longer exist in 3 or so years.
Exclusive agents will become Independents within 2 years. Allstate will FOLLOW Nationwide move
This is a great question! One would think Agents are on their way out. However, consumers still want a local agent that they can trust. However, TW and GS want the agents out of here yesterday. Allstate is still a bureaucratic mess. Moreover, claims is a short handed nightmare. These 2 factors make the consumer dependent on the agent. Allstate is trying to gain market share with a direct product that is on 7% less money than the agent product pricing. Allstate home and auto insurance is priced at about 20% higher than their competitors. Allstate needs the agency force now more than ever. The Allstate agency force is responsible for about 90% of all property and casualty sales. Furthermore, if you get rid of the agents kiss the financial services business where the Agents are responsible for about 99% of all sales. Allstate is not ready to kiss that portion of the business goodbye yet. Moreover, Allstate commercial is a complicated disaster that can not be sold direct at all. The first thing Allstate would have to do do is sell its commercial and financial units before they get rid of the agents. If you have to give a grade to Allstate direct the grade would be a D-. They have not gotten the direct sales division ever working properly. The proof of this is the disaster called Esurance. Right now Allstate is a rudderless ship. The left hand does not know what the right hand is doing.