Earlier this year Allstate started discontinuing CSG and removing it from policies state by state.
The gaslight reasoning behind the removal was that "Claims is running so smooth we haven't paid very many of these and we don't want to keep paying the filings or keep an office open to process something that nearly never happens."
Anyone even remotely involved with claims, customers, or Allstate knows this is a flat lie and total horse excr-ment at the very best.
Allstate gutted claims during the covid shut downs ahead of schedule to cut costs. They systematically cut all of the talent and knowledge base within claims knowing (thinking) they would replace them with less expensive people and train them. This has been a huge flop, because now after the great resignation, no one wants to work in a cubicle making chump change, being overwhelmed with calls and emails and customers pi---d off and managers that also don't care demanding more etc. etc. When they can tiky tok into fame and fortune or simply have a better work life balance doing their own thing.
We all know that claims and sales shouldnbe the heart of this business. But some bean counter in Chicago decided that cutting claims before they had all the next steps figured out was a great way to save money...
Then they decided that for the first time in human history cutting the commisions of a commissions based sales team would be a great way to build morale and incentives for building a business.
Now, not to leave out the total fiasco of the CCC sales and service model that is nowhere near being self sufficient.... they are not trained well enough to properly sell a correct or compliant policy. Loss ratio and retention on the CCC book are horrendous but no one will admit it on record because they don't want to spook the investors. Retention is in the toilet because they don't care when someone calls in to cancel and simply process the cancelation. Better yet an insured will call in because they sold one of the four cars on the policy... and the insured says "I need to cancel my policy we sold the car" and the untrained mo--n in the CCC doesn't think to ask any follow-up questions and cancels the entire policy... then when the insured catches on to the error, they call back, and the CCC doesn't care or have the ability to fix the self inflicted problem.and tells them to call a local agent... so they call a local agent... and the local agent sees a gap in insurance that is impossible to fix and no way to make any money under the current program so they tell them to call the CCC back to fix the problem.... ask me how I know....
The same people that got us here are designing the next batch of programs to fix this excr-ment show I suggest someone in home office ask "Should we or should we not follow the advice of the galactically stupid?"