Thread regarding Allstate Corp. layoffs

@oxa+1g8R282X While Geico and Progressive are getting business they are also losing a lot of business, many of those policy holders are not getting the best advice and the policy holders are getting wise. I have a person that lives a few houses down that is a manager at the local State Farm agency, they have hired 2 additional people due to stealing so much business from Progressive and Geico. She said the Allstate office down the block is getting some of the business but that guy isn't as aggressive as her owner.

7% on new business and renewals on anything written in 2023. Existing renewals on policies written prior to 2023 will be 8-9% based on management's current mood towards the agency force. Guaranteed this will be "tweaked" between now and Jan 2023.

What is agency compensation on renewals and New business starting in 2023?

If they keep lowering agency office revenue without improving competitive position then many agency owners will try to get out and leave the bag for another generation. Only exit strategy is to try to sell now as they keep lowering commissions.

Can you touch on the CWC rumors you think might be a bit exaggerated but true?

There have been some great insights given in this thread. However, some misinformation needs to be clarified. First and foremost, YES selling online policies costs way less than agent sold policies. However, 75% of consumers still want help when purchasing a policy. TW has been with Allstate Since the the early 2000’s. He has never been successful at selling policies online. In fact he bought a direct company Esurance and ran it the ground. Time for TW to tell shareholders why he can’t sell policies online. Despite all the labor cuts at Allstate, it is still a bureaucratic mess. Agents, still help customers navigate the mess Allstate has created. 50% of Progressive policies are agent generated. Progressive does have the correct formula for balance between agent and direct business. We certainly don’t hear Progressive leadership bellyaching about Agent generated business. Allstate has started détente with the agents this week. Leadership has lowered their bonus requirements by an average of 25% for the agency force. More than likely Q1 numbers will not be good especially on the retention side. CWC rumors are probably true but exaggerated. Remember CW of CWC bailed on Allstate after telling his loyal followers to keep positive attitude while he ran to the bank cashing in his chips. CWC has management in his hip pocket, but some loose change is slipping out the pocket since he bailed. Rumor has it CW has changed his personal lines over to State Farm now that he is no longer an Allstate agent. I hear CW saved 19% on his premiums. Remember if Allstate gets rid of of 65% of its Agents, 25% of that agent premium will follow those disenfranchised Agents to their new work destinations.

Allstate is dead to me

Transition to a low cost high growth model has been touted for a couple years. Easy to cut or change commission structure and introduce new models. Messing with agents has never been a winning strategy as industry expert Brian Sullivan shared at an Allstate leadership conference. EA's should be a key part of the strategy, though all admit that consumers have changed and Allstate needs to improve in direct and IA channels.

There's no way to compete with progressive, Geico, etc with the current agent based model. It's a relic of years past and not worth the cost to maintain

Senior leadership has been touting a “low cost” auto product for a couple years now. This was based on their expense savings initiatives. However, the introduced an employee agent program which is turning into a complete money drain. Go into LinkedIn and check out the backgrounds of these new agents as well as their leaders. They are taking anyone who can fog a mirror. Unfortunately, in the end, it will never work out and you can pretty much kiss goodbye any hopes of being a low cost operator. Just make a few calls for rate comparisons and you will clearly see how far they are out of the ballgame.

Talked to this guy from CWC who has his hand in leaderships pocket on agency sales. Most likely 3000 less agencies by years end

Horrible rates , constant tech issues and horrible claims organization and the leaders still have a job

Horrible rates , constant tech issues and horrible claims organization and the leaders still have a job

Agents are obsolete

It's 2022. Nobody needs an agent to buy a policy, especially one that can only quote one company.

treat agents like dirt and see what happens