The real issue is how long the captive agency system can survive in our industry. They can’t simply keep cutting commissions and expect everyone to fall in line. There will be a breaking point which will come sooner than you think.
I've been thinking about this just recently, @qyv+1hrLPiQv
Can we have a little discussion about it?
@1gme+1hu82WGm I used to think that when I was selling Allstate, I am with another carrier now and that isn't the case, my office has found that when I am talking to an Allstate customer the chances of my selling to them are low, I have also found when I am talking to a GEICO or Progressive customer I can often get them over by talking about how those companies have reduced their coverage to get them lower rates.
Agents are about to be totally screwed. They are being forced to rely on AI and incorrect resources and soon their support will be provided by non-Allstate vendors in Mexico and India. Underwriting will soon be a no dispute zone with zero exceptions and no questioning. If new business is denied or if non-renewals are decided or if home inspections are considered unacceptable or if new business is endorsed to re-evaluate for valuation then it will be what it is without any questioning or changing. Also by early 2023 a further direct channel pricing is being implemented to make direct and corporate sold new business even more cheaper than exclusive agents and independent channel will be cheaper than exclusive agent new business. And wait for the new exclusive sales metrics in 2023. That alone will guarantee the termination of and forced acquisition of at least 50-60% of all exclusive books of business. Corporate is getting ready the rob the exclusive agent channel blind. Get out while you can exclusive agents!
It’s been a dated plan for maybe 15 years….and they keep losing ground because of it.
Allstate has the highest auto rates and they know it . This is a plan of failure to keep churning business
Allstate corporate has provided higher new business commision at a higher rate. Also a higher rate for bundles. They also let captive wrinte new purchase - no prior auto insurance. They also let captive write NatGen home which is excellent coverage at a great price. Yes renewal has been cut b ut if you have a good office you will make it. If you have five employees and buy every lead the numbers may not work.