I don't think Allstate knew how to run a company with a similar market niche as Chubb for high net worth individuals, i.e. doctors, lawyers, successful business owners. That is what the Encompass package policy was originally created for when it was owned by CNA. Encompass had gross premiums of over $3.5B when Allstate bought it. Now gross premiums are $1B. It never came close to meeting its goal of $10B in the 20 years under Allstate guidance. Great sales leadership! now its becoming a non-standard auto insurer under Nat Gen. Another former good company going down the tubes.
8 replies (most recent on top)
Agree the people they put from Allstate over time the IA side has been an unmitigated disaster for the company.
Not sure how Encompass managed to hang on with Allstate for so long (20 years!) without making a profit. Should have been jettisoned a long time ago.
There has not always been poor IA leadership. But for at least the past 10 years, yes, it has been pretty poor.
I don't like how this has been handled at all obviously, but I have to say the TSCs I interact with are pretty terrible at what they do. Again, -some-, simply rely on being able to push what needs to be done to some other area instead of doing it themselves when they have all the ability/access needed to do so.
Finally! somebody said the truth about the IA distribution channel. I totally agree and echo the previous post. The absolute TRUTH is
- “poor sales leadership”, not just poor but an absolute poor joke.
- “hire a bunch of” anybodies. And I mean anybody, as long as they could drive a car and complete a quote.
- “arbitrary sales goals”, no business methodology at all.
- “nepotism and favoritism”, OMG! The IA channel was ran almost single handedly by this one thing, NEPOTISM. If nepotism would have been removed, most of the current leaders including RSMs and TSCs would need to know ‘insurance’.
A very, very long time ago, the ALLSTATE IA channel, not Encompass, but ALLSTATE IA, was respected within Allstate. There were quality and knowledgeable sales leaders in place. Now it has dwindled down to a lot nepotism and people who know how to drive a car and complete a quote. So sad.
This is all the result of poor sales leadership, plain and simple. This is what you get when you hire a bunch of underwriters or claims people and turn them into sales people or sales managers. It's like the blind leading the blind. Not to mention arbitrary sales goals and a healthy anount of nepotism and favoritism.
So reduction now and then with the NatGen merger? That’s harsh even for how you’ve been treated over the years.