Thread regarding Allstate Corp. layoffs

"Allstate is dedicated to exclusive agents"

"Allstate is dedicated to exclusive agents" is a posting on the agent's gateway this week. With an article and a video from Terrence. Having to say it really means they are trying to do damage control because they are not believed. They are trying to talk the talk because the walk they are walking is not saying the same thing... The earnings report is clear, the way they treat agents is clear, the agents don't feel the love other than when there is bad press... leadership say "oh no we love you! can't you see how much we love you?"

Allstate is a sales company, everything starts with sales... you can never cut sales departments to get growth, it just doesn't work.

And as long as the direct channel keeps throwing cr-p at the wall, they'll never replicate Progressive and Geico... The loss ratio, retention and E&O exposure would be a fun disclosure and comparison to the agent channel.

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Post ID: @OP+1aNuK4An

14 replies (most recent on top)

Agents just filed lawsuit against Allstate. Surprise. Surprise.

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Post ID: @8lcj+1aNuK4An

Many Allstate agents delegate their sales/service to inexperienced LSP's. The LSP turnover is 40%+ in the agency space, and the hiring, training, and supervision is lacking. Many Allstate customers rely upon guidance from these types of insurance "professionals" only to be poorly served and protected. For this, customers are charged a much higher price. For me, buy from a decent agent, then shop the same coverage from online peers. You can fight the change, but the customer has spoken by boosting the market share of Geico, PGR, and USAA while Allstate's agent loyalty now goes unrewarded.

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Post ID: @6blv+1aNuK4An

Did someone say pointing the finger at others is a huge issue. Ge-z, way to confirm that thought. The problem with the agency model is only about 30% want to make the effort to do it the right way. The 30% that try and make it work kick bu-t but the 70% is crushing the whole model. Probably a similar ratio in direct.

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Post ID: @3qwu+1aNuK4An

@2yzr+1aNuK4An

Nioce to see some corporate stooges and CIC mo--s here to cheer on the burning house... I'd bet that the one who is with G--co and hasn't talked to an agent in 15 year is under insured, maybe not on that policy but on something else in their life... Unwilling to TALK to a professional because they can do it themselves and save 15%. We see the insurance consumer that "doesn't need an agent" or "want an agent" on a daily basis. They come begging us to help them after sh-t has hit the fan because they are underinsured with state minimums because they "Picked Their Price" or had an "Agent" 2000 miles away promise they'd be covered at claims time... All of a sudden they want advice and coverage to save their rear end.

There are no false criticisms of the CIC, 90% of the things they touch have errors on them. Many of the errors are things that home office would terminate the EA's for or look like intentional fraud. Policies bound without the customer's authorization, bad banking information attached to get it on the books. Wrong addresses, wrong cars extra cars, salvage title cars... The E&O and LR mess that is churning will be of epic proportions. No one is saying that the Progr----ves, G--cos, and U_AAs aren't doing well they are just chasing a different fish...

TW, GS and TW2 all talk about the blue ocean strategy and then turn on the chumming for the red ocean feeding frenzy, it's as if they all listened to the abridged version of the cliff notes of the book and then winged it as they talked abut the blue ocean strategy... They know it is a better strategy, they just can't get over the short term rush of the feeding frenzy.

As long as the CIC keeps giving lousy service and advice and Progr---ive G--co and U-AA cut coverage to sell on price, agents willing to build the right kind of book are safe.

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Post ID: @2bgr+1aNuK4An

Who in their right mind wants to pay double the amount with horrible claim service?

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Post ID: @2thk+1aNuK4An

Terrance has destroyed any trust he has ever had with the agency force. He has further divided the company pitting agents against each other. someone needs to send this id--t packing soon

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Post ID: @2yeq+1aNuK4An

This is a perfect example of what this company has sowed. Absolute discord between sales arms and service arms. Finger pointing at every department yet no one taking any accountability for their own short comings. A great company, has everyone working together. The company is reaping exactly what they wanted to sow, and yet everyone in sales and service hopes they will reverse course. Fat chance, everyone is expendable.

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Post ID: @2jsx+1aNuK4An

I’ve not talked to an agent in 20 years. Insurance agents are following the footsteps of travel agents .

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Post ID: @2gpq+1aNuK4An

Never talked to an agent at Geico in the 15 years I've had a policy. Their automation, mobile apps and technology have been sufficient and no unnecessary phone calls with id--t agents trying to upsell me.

This is why Allstate is doing what they're doing. Make the tools easy for customers to use and they can service themselves, requires far fewer overpaid sales people, I mean agents.

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Post ID: @2sby+1aNuK4An

Allstate still needs EAs because that is the only way they can sell business. We will see a slight uptick in policies from direct and IAs but it will be a few drops of water in the bath tub. Truth is that the company knows this but trying to please stock analyst who think the GEICO/Progressive path is the way. The EAs are safe until this company figures out how to be easy to work with and get their prices down. Leadership has all their eggs in the basket that this will happen on step 5 of TG but I know better. Allstate is hard to work with, priced too high, keeps hiring people that don’t know what they are doing, and unwilling to truly invest in growth. Anytime you hear “profitable growth” that simply means “we aren’t willing to do what it takes to grow”. I’ve worked for several companies that have talked about “profitable growth” and they all usually gain or loose .1% market share a year. Allstate simply needs to go back to the basics and lower their ROE targets to 5-10% and this darn thing will grow. It’s simply too competitive to maintain record high margins and grow the business no matter what channel you use. Direct business is cheap to write but cr-p and agency business is much better but expensive. Growth = lower your margins + happy sales team + pricing sophistication + good service.

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Post ID: @2yzr+1aNuK4An

Nice to see all the EA's whining on this post. You still act like prima donnas while the world passes you buy. You don't add anywhere near the value you assume you do and you are too stupid to see that today's insurance consumers don't need you, or want you. You are about to go extinct. Nash your teeth all you want, your days are numbered. Think Geico, Progressive and USAA. Do you really think your false criticisms of the CIC will save you?

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Post ID: @1zuh+1aNuK4An

@1bns+1aNuK4An - Sorry to burst your bubble. Captive 'Independent' Agents are the only thing keeping this company alive. Proven that call centers write cr-p and the client gets shafted when the claim occurs. Cost to litigate errors has gone through the roof. Profit is the casualty of poor sales practices from CIC and the-ilk. The new "Basement Dweller Agent" will be no different, "Churn and Burn" is the daily mantra and the 'hands' are going empty as I type. Any one with half-a-brain can see what's happening to AILSTATE. Management of this company ignores it.

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Post ID: @1elx+1aNuK4An

@1bns+1aNuK4An

And if all the agents were gone...
Who's going to sell policies?
Who's going to service correctly?
Who's going to retain the business?
Who 's going to cross sell?
The call center does a pi-s poor job of all of those.
The call center managers don't know a thing about the day to day issues agents deal with.
The processing mess and shoddy advice that comes out of the call center is epically embarrassing. they can botch the simplest items and not care, because who is going to find them and care? No one...

Allstate has a long way to go before they can replace the agency force... It may be coming but they surely shouldn't be amputating the only working arm of the company before they have a bionic replacement built, tested and in operational format.

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Post ID: @1dac+1aNuK4An

Dedicated agents are a thing of the past... So many cost savings if they were all gone

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Post ID: @1bns+1aNuK4An

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