Has this been confirmed?
23 replies (most recent on top)
What the H E Double Hockey Sticks was that about ???? Another waste of time from this pathetic leadership !
policy reviews and retention. AI and Direct channel cannot do that.
EA's do that.
Allstate wants agents that are engaged in growing new business and retaining, agents who fall outside of that category will struggle. pretty simple and no reason to spread doom and gloom
@1nx I hear you and this the result simply of an emotionally immature leadership group (watch what they do not what they say). I.E. Lets talk about AI but not be able to roll out basic AI programs...lets talk technology but not be able to roll out simple 2 factors app changes...lets talk lowering aquistion cost while paying agents a ton for new business. Its a weird concept for most people but these people are not straight sho-ters...they live in imagination land...but when push comes to shove they have to deal in reality . That is why they can't answer basic questions about where we are going as agents. They will flirt with idea and validate that it is a bad idea. The changes coming likely will move us back in the direction we had previously with a little "new business flare". Will that work? Probably not well until we price competitively and don't run our auto loss ratio (the least profitable line by the way) to 88%...target is 95-96% LOL (this is billions of dollars). You think ASC is priced well? Give these same agents Progressive and watch them write 80% of their business with them instead of Allstate. Allstate doesn't care about "profitable growth"...they care about maintaining the best they can and "profit". You see this over and over again. Does the web channel look good allocating all that marketing budget against the entire org but meant for web....online quotes caused by agent marketing? Does the Allstate Direct look great picking up tons of agency marketing (after hours and other ways)? These agency changes won't be too bad because how could they? They are already talking about bringing on more new agents...saying they lost too many...need to stabilize the system. Agents will react how anyone would react...reduce, go do IA, or go after growth...Allstate gets to decide what happens next. Want to keep your job? Hope they don't blow this up...(they won't because look at Tom's stock options).
@1jk Well if that is all true then Allstate is shooting themselves in the foot as there are active and ongoing projects to eliminate EA's overall in the coming years. First eliminate its service footprint and then mass consolidate agency sales to a handful of regional, not local, based agency conglomerates.
Allstate really thinks they can maintain and even improve if 80+% of sales are from within corporate.
Not saying I agree with this but reality is this is what Allstate is planning in terms of eliminating almost all EA's and independent agents will not and do not sell the new product.
Again pi-s poor decisions by clueless underqualified executives.
Most of you commenting about "getting rid of agents" really just don't understand why this whole system works, how loss ratios differ between channels, the cost of acquisition spread amongst years of average retention and the overall failures of the past in trying to do just that. There is a reason that Allstate is so profitable and it isn't that online business (insert years of auto loss ratios from eSurance well over 100% here). Whether you are 30 or 85 you want someone to call if something goes wrong that is a local qualified human being and that will not change anytime soon. Even the young generation is finding out the hard way and the agent channel is now seeing growth here.
The truth is Allstate has an easy out with agents which is making them all truly independent. This cost them nothing and probably would have some sort of program for transferring those policies to true ownership to the agents just like Nationwide or American Family. Most educated agents share your vision too because they know they offer more to Allstate than she offers to them under almost all circumstances. Agents own the financial interest in their policies so the alternative would be TPP all of them but I think the retention drop on that is too large for the executive teams stock options.
Most jobs at the company are tied to the continue financial success of Allstate which is tied to the continued financial success of agents. Carriers struggle to make UW profit on online business (GEICO just wants the float remember) and struggle anymore to sell homeowners (Allstate most profitable line). Get rid of agents? Please, we would all love to have more competitive carriers that have better pricing discipline as the other carriers are finally turning back on in many weather states.
Most of us have been advocating for getting rid of EA's for a long time now. Just a burden and unneeded cost that can be focused on many other areas to improve the business and improve products.
Those companies without agents are eating our lunch.
There is no mystery. And change the agency model should hardly come as a shock to anybody because this has LONG, LONG, LONG been inevitable and in the works. If you want to be an Allstate EA, then your agency will be 100% focused on sales. Customer support and administrative functions will no longer be part of the agency model, period. Meaning all agencies, whether already widely successful or struggling and in the toilet, will need to shed all support and administrative personnel. It's not fun letting good people go, but that's how the cookie crumbles. Those left within an agency will be 100% devoted on selling to achieve step-change growth expectations handed down by corporate. Some agencies will thrive, grow and even acquire other agencies. Other agencies will perish and go the way of the dinosaur. It is what it is. Adapt or die.
@OP https://www.businesswire.com/news/home/20260310198344/en/RingCentral-Unveils-AIR-Pro-An-Agentic-Voice-AI-Platform-for-Customer-Engagement
Makes you wonder why they are forcing everyone into Ring Central?
Well--well look. I already told you: I deal with the god damn customers so Allstate doesn't have to. I have people skills; I am good at dealing with people. Can't you understand that? What the he-l is wrong with you people?"
Like it or not…..agree with it or don’t, but this had to happen. The competition employs AI. It is the way of today (and into the future).
@pn AI don't lie.....but agents do!
These are results from a simple Google search. Are we the last to know?
These are results for is allstate forcing agencies to use customer service
Search instead for is allstate forcing agencies to use custmer service
AI Overview
Yes, Allstate has moved to force its captive agency force to use centralized, company-run customer service systems for routine service, shifting the focus of local agents toward new business sales.
Crain's Chicago Business
Crain's Chicago Business
Key details regarding this shift include:
"Transformative Growth" Strategy: CEO Tom Wilson initiated a plan to cut costs, which included reducing agent commissions and shifting routine customer service out of local agency offices.
Mandatory Technology Shifts: Allstate has required agents to use company-approved phone systems (such as the "Allstate Agency Voice" platform) to manage calls, causing tension with the sales force.
Reduced Agency Roles: This shift is designed to remove routine tasks—like policy changes or payments—from local agencies, which the company claims is for long-term success, despite pushback from agents who believe it weakens customer relationships.
Exodus of Agents: Similar past attempts to alter the agent commission structure and service models led to a significant exodus of agents, with many becoming independent to compete with Allstate.
Service Centralization: While some agents have resisted, the company has continued to push for this centralized model to compete with internet-driven insurance sales
@ky This is pretty much verbatim what our agency owner was told. Any other fluff or garbage out of corporate that claims and states otherwise is pure misinformation and outright lies.
But you know they are going to try to paint over this with corporate speak and pathetic word salads when addressing and giving the wolf smile to agencies.
And even question your field representatives if they try to deny or gloss over this. They have been given their talking points and scripts and are not on the sides of the agents. Most of them have other corporate roles already waiting for them. So they don't care.
Exclusive Agencies will be 100% devoted to sales. Everything else shifts to Allstate Customer Service, self-serve. To include AI-driven models that will continue to be developed on the fly. For many agencies, this means that "minder" and customer service type will be eliminated. The sales bogeys placed on EAs will be aggressive. Part of the intermediate strategy to cull the herd to only those who are effective new business development machines. 24 months from now the overall landscape of EAs will look dramatically different.
Allstate agencies will be the way of the dodo by 2029 or so based on the overall extended plan. It starts with service but will not end with sales.
@hx Thanks. Confirmed with an agent that is well connected to management that this is true. Everyone will be forced on ACS.
There is a plan to take everything out of the agency aside from sales. Agencies will have to refer customers to self serve or ACS for everything else. Reduces compensation and redesigns the agencies to be selling machines instead of advocates. Agent owners will have to quote and bind a certain portion of the new business sales themselves. Corporate is taking on the advocacy role.
@fc So force all agencies on Allstate Customer Service?
We heard at our agency they are taking all service out of the agencies. Insureds will be self service (though an AI agency platform) or CCC for endorsements and payments. We will sell the product and nothing else. Which means no more endorsement and reduce renewal compensation. Also very very high ceiling on sales number will determine which agencies are kept and which agencies are terminated and their books absorbed.
Best try to unload while there is still money to be made. A lot of agencies about to be out of their investments.
@e6 It will be some form of AI to eliminate or at least minimize agent involvement. It’s the current wave…….which they will claim to be on the front end of.
Rumors have been circulating for months. What are your thoughts? Expansion of A.I., agency closures for failure to meet goals, "Super" agents only, like a Walmart superstore, reduced renewal commission for policies issued before 2023? OR ALL OF THE ABOVE?
Chug a lug that Koolaid!!
To be honest, the best thing they could do for agents is what LIMU did with Comparion. Give EAs multiple carriers to write with and get rid of VC!
Here...comes....the....PAIN!!!