The agency structure is the elephant in the room that no one is willing to address. Customers should be able to decide if they want an agent or not. State Farm should have a cafeteria plan. There is no reason that individuals that do not want agents should have to subsidize the cost of agents so State Farm can keep 19,000 of them around as independent contractors. State Farm's decision to live and die by the agency structure is another major reason our great company is dying. Our Agency structure would be similar to if I went to McDonalds and ordered a chicken sandwich and they a stuck a Big Mac, large fry, apple pie and muffin top in my bag and told me I was paying for it whether I was going to eat it or not. We have to stop jamming agents down the throats of our customers! Look around, it's no longer 1922.
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We are known for personal service. Not long distance service. Like a good neighbor is not only in Atlanta, Phoenix and Dallas. Nobody wants an Agent until claim day. This includes the online folks. It’s where the rubber meets the road.
How’s about we offer slightly discounted policies online to reflect the lower cost of that service and then see how many customers are willing to pay a premium for an agent.
I do my insurance and banking through a company that is 100% online. No branches, agents, or physical presence at all. Their service and retention is the envy of the Industry. State Farm doesn’t even bother to compete. You’d think we might look at that and try to learn a thing of two.
I have thought for a while that auto policies should be treated as a commodity and the agent should only get an acquisition fee if they write it, nothing if bought online but all other lines should remain commission based. We need to get them in the door with affordable and competitive auto rates then let an agent upsell on the more profitable lines.
Here’s a free-market-inside-State-Farm idea. If a customer comes in through an agent, they forever are associated with an agent. If a customer comes in online, they aren’t associated with an agent. Let each model bear its own costs. Website costs for online and agency commissions for agency. Let the customer decide if the agent is worthwhile. Right now even if you come in online you’re assigned an agent and they get commission — for what?
Agents: The executives aren't scouring this website to help justify the agent model (so defending yourself here is pointless), and most of us know that the metrics regarding what percentage of policies are signed by agents is grossly inflated by State Farm standard operating procedure.
Actually the current number is closer to 90% of our customers now purchase online. That is compared to 25% for other carriers. Over 50% shop online. Our online presence is unfortunately not industry leading. A couple of facts, we would be foolish to abandon agents if there are customers that want them-that may be a dwindling number. Second, if that day comes the Farm will pivot-it has made a lot of progress on the capabilities to do so.
The ignorance of sF employees not understanding the agency model is hard to comprehend. 98% of all policies are sold BY the agent’s offices. That is the only reason you have a job. Those agents employ 75,000 people who cover for the lack of service provided by internal employees. The vast majority of people have no concept how auto and HO work and need assistance with making accurate decisions. The agency structure is not outdated and is not a problem.
PERFECT! The office is your cherished (obsolete) 1950's model. Maybe the office should be in the onsolete mall...
"the office staff handles my calls I don't need an agent"
You do if you want to talk to those staff.
Not sure how people in this company don't understand how the agency model works. No agent means no office.
i agree 100%. the office staff usually handles my calls i dont need an "agent".
It is a sad state when Ops and Agency folks are going after each other. Same team folks. Both sides got stuff to work on. Think we are in the boat together.
I heard from my friend in associate funds agents are dumping SF mutual funds not sure why we sell them. Good luck to everyone.
Hey 20 year agent: The executives that completely screwed up this company's customer service by gutting claims, and who ruined Systems by paying vendors billions of dollars to destroy every functional process it had, are the SAME executives who think the 1950s agent model is worth keeping.
Smoke on that for a minute.
I am a 36 year retired employee and I would first Iike to address the comments from 20 year agent. You should be ashamed of yourself for your lack of professionalism in your comments and if you were my agent I would cancel every policy. There is no call for some of your comments.
Shouldn’t all agents and current employees try to work together to solve these problems? Comments like yours only add fuel to the fire.
I have been a SF policyholder for over 50 years. I would like to see SF have an option to have an agent or not. If a policyholder chooses not to have an agent then an appropriate premium credit should be given.
I never thought I would see the day that there would be so much dissension between agency and employees. Sad to see and not productive. Try working together more.
I blame the majority of these problems on the executive decision makers.
Learn finance peon... The SF pension is 100% funded and is totally separated from what you claim to be "a woefully under capitalized insurance company".
What a big joke to to hear the "agents" defend their 1950's model... What person/customer under age 40 wants to go in to an agent's office on a Saturday morning and have a "simple conversation" with an agent who passed his exams last week. These morons don't know squat except what bumps their commissions. Anyone who sells a SF mutual fund or annuity to a naive country bumpkin customer is in fact immoral. SF public funds are an absolute joke as are the internal 401k funds. Most of the time they under perform unmanaged index funds.
The times they are a changing. Just ask Sears Roebuck, General Motors, traditional taxi companies, shopping malls,... You can try to convince the world "we are truly vital and comsumers cannot live without us...", I know you know the truth. You just want the ride to last until your retirement. Real talk.
You wouldn't believe the lapse/can this company would have had if I wasn't apologizing day in and day out and/or covering up for the sh--ty service that this company has provided in the last years.
And you think the 24 hour crew is going to sell anything? Talk about fixing mistakes.
Company keeps saying they want to take service issues off our backs....we are terrified because we know how bad you all will F*CK it up.
The agent concept is outdated... Agents staff do much of the work, are typically underpaid and receive no benefits while the agents kick back and are rewarded with bonuses and trips. In the 18 years I had an agent I NEVER spoke to my agent. I've switched to Geico, have had a claim and two towards and they are fast and efficient plus save me 100.00 a month all with no agent. It's ridiculous we still bow down to them like they are the ones who support the company.
You dumb sh-- the stock always comes back after it crashes. What a tool you are.
You think that's the elephant in the room? LOL!!
Not at all, only a peon would think that. The elephant in the room is the widely known FACT that all insurers are woefully undercapitalized to handle the retirement of the baby boomers and when the stock market crashes, pensions will vaporize in a moment.
But of course, that's miles above the head of the average peon.