The brain drain was irrecoverable.
11 replies (most recent on top)
The problem was a crossed wire when Tommy Toupee said he wanted Transformative Hair Growth and someone missed a word in his memo.
Seriously though, at its base level any excelling insurance company today is first and foremost a technology company. The best systems to streamline sales, utilize predictive actuary/underwriting, claims handling. and customer experience wins the game.
This is why the Progressive/GEICO's have come from nowhere to challenge SF for the top spot is US P&C. If AS doesn't keep up with the tech curve they will be dusted like any other stodgy old school insurance behemoth.
Of course doing this likely means your job will be gone in the future which brings us to this website and the real question is how each of us will prepare for their own personal Transformative Growth before the pink slip arrives should AS actually adapt.
Talk to some of the NatGen side - they launched the ASC products (called Custom360 there) and it’s been a train wreck. The Allstate technology platform doesn’t work and the product is geared to writing single car auto policies with poor credit and low limits. It’s a worse version of the NatGen rating plan.
Time to come up with a different plan or this company is toast.
It's not that Transformative Growth/ASC is a failure. It's that the people in charge of Transformative Growth/ASC are failures.
Serious answer. The original TG plan would have had a better chance of being successful had covid not happened, driving the inflationary environment. That threw a wrench in things and affected not just us, but the whole industry. Because we reduced expenses in 2020 we were able to decrease rates which increased our close rates and was bringing in more business. We were growing. The reduced rates had a short-term immediate impact, but came back to bite us once inflation hit. Unfortunately, we also executed some of TG poorly, laying off too many claims employees and other agency support functions and not having a proper way to handle the work coming in. And we’re incompetent in the technology area and still haven’t been able to roll out the new auto product to agents. We moved forward with our plans in spite of the significant external challenges. We did need to dramatically reduce our expense ratio. We couldn’t compete with the lower rates from P and G. And we did need to modernize our agent program and our technology systems. Change was years overdue. But truly, a lot of what has interfered with our progress has been the external inflation and weather factors. Our leaders have made some bad decisions in the process though and have exhibited poor leadership during a time when employees are struggling.
Wilson needs to go
Watching Q3 prop & Liab meeting with Mario etc. We lost alot of money in the first half of the year. How can Transformative Growth be working for the better?? Will there be job losses in claims soon because of this?
Good question, I wonder if the BOD has ask themselves that? I suggest it was arrogance at the top level which tainted the lense of the next decisions that needed to be made for the plan to be successful.
The drum beat will only get louder.
Anything that moves American jobs to foreign labor and exploits that foreign labor with unfair wages all while still hemorrhaging money over the last 3 years while lying about and manipulating stocks and assets is nothing but a failure.
I implore OP (obviously and handler) to tell us how Transformative Growth has been in any way a success.
It was never about growth. It was about expense reduction.