You do not need an MBA to have serious concerns about the current direction of Allstate..
In order for “transformative growth” to be successful, 3 things must happen.
1–The top line MUST grow substantially each year to offset the proposed cuts in premium to compete with geico, progressive and the rest..which means the retention of current customers must be high every year..
2-Allstate MUST be able to cut costs to the extent needed to compete with their lower priced competitors.
3-In order to retain customers who have a claim (20 percent of PIF exposed in any given year), Allstate must be able to give customer service that at the very least is equal to the service being given by lower cost competitors.
If any of these 3 things fails to happen, TG falls like a house of cards...
We are already seeing the bleeding of customers in large part based on continued high premium charged to long term customers and the significant deterioration of customer service at Allstate across the board....
Over the next 5 years, we will likely see Allstate made irrelevant as a major insurance carrier....
I look forward to watching..