Thread regarding State Farm Insurance layoffs

Same thing everywhere

Yes, I am frustrated. But at the top of this page, click on Allstate, or Farmers, or Nationwide or AmFam. They might as well be the State Farm links. I’m an agent, used to work in Claims. All I have to do is walk across the parking lot and talk to another company’s agent. They are going through all the same stuff. Yes, our companies are changing. But they are trying to adapt to an industry and a world that are changing. None of us are doing the same job we did 5 years ago. None of us will be doing the same job 5years from now, and many of us won’t be doing any job at our present companies.

For us, we see customers face to face every single day. They want to pay less. But when something goes wrong, they still want me to be able to instantly fix it, or at least have “people” I can call who have the authority to fix it. They still want an army of local claim adjusters....but apparently believe there’s an army of volunteers working in donated buildings. When we tell them it cost a lot of money to have all those people in all those facilities, they usually respond “that’s just the cost of doing business”. As though there’s no relationship between costs and pricing. There’s a total disconnect somewhere, and it’s going to take something really revolutionary to turn it around.

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Post ID: @OP+SXtCA6X

15 replies (most recent on top)

There’s a credibility issue on these threads. A few people seem to have anointed themselves as keepers of the one true faith. Any poster who differs from their version of orthodoxy is branded a heretic....I mean troll. It’s too bad because this forum could be a safe place for thoughtful discussion.

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Post ID: @2ynn+SXtCA6X

TERMINATE EVERY CONSULTANT!!!!

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Post ID: @1pfr+SXtCA6X

Yeah, we definitely have trolls here. But this OP seems more like the work of a corporate PR goon. I could be wrong. Our resident troll could be responsible for this OP and for half the responses here, for all I know.

Either way, this is like the 4th time someone has tried to create this particular thread. Each time it is called out for being the BS that it is.

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Post ID: @1vpu+SXtCA6X

Go to the front page of this site and check the most active companies. No other insurance companies are active. The Allstate posts are a month old & questioning when the sh-- is going to hit the fan. The Farm is cutting hard when everyone else is either growing, or at a minimum, not in a transition. We have trolls a plenty here...

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Post ID: @1xue+SXtCA6X

By the way, All-State is hiring.

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Post ID: @1kop+SXtCA6X

Largest workforce? Yes.

A history of terrible decisions at the leadership level? Yes.

Losing policies while many other insurance companies are growing? Yes.

Losing employees while many others are hiring? Yes.

So no, not the same everywhere. Not even close.

The commonalities faced by all insurance companies are the only thing that's "common." The impact certainly is not.

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Post ID: @1ipt+SXtCA6X

State Farm had (still has) the largest workforce in the industry. Combine that with the fact that they are one of the latest to adopt new technology, and it's hardly surprising that they are laying off the most people.

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Post ID: @1pld+SXtCA6X

No. It's not the same thing everywhere. Someone find me one single insurance company that has laid off as many employees as State Farm or that has lost as many policies. Go ahead and look, but you won't find it. You won't even find one that's in the ballpark.

As the previous poster mentioned, State farm is in the top 10 for layoffs for 2 years in a row. They are slashing and burning the entire company, while some other insurance companies are hiring and growing.

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Post ID: @rxa+SXtCA6X

I left State Farm (voluntarily) in 2015. I thought I'd loose my mind, the stress working there. The micro-management. But also the ivory towers from whence decisions that make no sense came down onto the lowly minions expected to exact those decisions .. enough to drive a person insane!

The only recourse, was our direct management. Used to be claims folks, . now managing in areas they have no knowledge or experience. Those who sit in ivory towers .. unapproachable.

Best decision I ever made, for my own well being.

I feel for those of you who have invested your career in the place and seen it turn so far south as to the disconnect between good service to customers, and the same disconnect between managemet and the rank and file.

Hope all of you can find more rewarding paths to come.

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Post ID: @xcd+SXtCA6X

State Farm is desirous of getting rid of their most tenured/expensive employees. The best way to do that is move jobs and make it look like a re-org. They avoid a lot of discrimination suits that way. They aren't wanting you to accept those reassignments. They'll figure out another way if too many move. they want you gone!

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Post ID: @tqn+SXtCA6X

This is the most sophisticated version of this particular PR message we've seen yet.

But no, things are not the same everywhere.

State Farm was in the top 10 for lay-offs both last year and this year (so far) with no end in sight. There isn't another insurance company even on the list.

Retail is the struggling industry. Insurance is not.

Yes, the insurance market is changing, but State Farm's woes are largely the result of its leadership and the bad decisions they've made over the years. In particular, the last big re-orgs in claims and Systems were buffoonery of the highest order.

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Post ID: @rhw+SXtCA6X

It might be the same thing everywhere, but State Farm is the only insurance company laying off employees in such numbers. All-state laid off 500 people last year and then turned around and started hiring State Farm's lay offs. Other insurance companies are growing like crazy while State Farm is shrinking and losing customers daily.

So yeah, maybe it's the same changing insurance market we're all dealing with, but State Farm is doing the absolute worst job of adapting to it.

Plus, they appear to have no strategy. It's all just one clueless shot in the dark after another from our inept executives.

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Post ID: @fne+SXtCA6X

Wait do u see the change in agency renewal compensation. Farmers is going to 0% on Homeowners renewals it’s a volunteer position in future.

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Post ID: @cnk+SXtCA6X

OP - I agree that there is a disconnect. It starts with our ad campaign that says that State Farm is here to help make life go right. Right there State Farm is making a promise, similar to the promise we have always made, that State Farm will be there. The problem is, we have been cutting back on the number of claims people since 1995, and they are the promise keepers. Also, Corporate keeps trying to make the claim central concept work when it has consistently failed for us. Finally, the remaining workers are overworked, micromanaged and demoralized. Not our fault, but in this environment the best we can do is make life kinda sorta ok. Can you picture that as our new ad campaign?

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Post ID: @btb+SXtCA6X

OP is not wrong.

There are disconnects far and wide. And growing.

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Post ID: @szn+SXtCA6X

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