Thread regarding Allstate Corp. layoffs

Retention and Company Growth Issues

https://www.chicagobusiness.com/insurance/allstate-losing-auto-insurance-customers-fastest-clip-nearly-two-decades

With this article and the recent earnings call many of our eyes are even more open than before at what is going on (or not going on). Tom and Glenn both had a deer in the headlight reaction to the questions on retention... They acted like its is some sort of mystery... We are a business of big numbers, statistics and knowing exactly what is going on... It is not a mystery.

The retention and growth problems can be reversed. Let's start a list that hopefully TW & GS will see and take action on. Be reasonable and respectful.

I'll start.

  1. Stop the No Grace Period Terminations and Reinstate with a Lapse.
  2. Stop allowing the CIC to write junk business with every compliance issue known to man and then sent them to be serviced by the agencies for nearly zero money. They don't care to deal with the trash for little incentive.
  3. Stop "tweaking" internal discounts and ratings factors rather than filing for rates... We gutted every department known to man (except the "C Suite") to save $$$ we shouldn't need rates.
  4. Allow working agents in your "pro or elite" status to purchase the agents that are being terminated for not meeting ABO. These customers are not going to get the same love from the CIC as they will from an agent that is earning 9% (unless this is what you are going for...
  5. Stop with the non stop irritations to the customers and agents.
  6. Give the agents a feeling of security. You say you are being clear and concise but it all comes out as corporate mumbo jumbo...
  7. Stop talking about the "Blue Ocean Strategy" when it is obvious that everything you are doing at a home office level is chasing after the red ocean customer. You either didn't read the book, you don't understand it, or you are intentionally sating one thing and doing another.

What else do you have for home office to increase retention and grow through acquisition? Be realistic and polite so that it is actually read and heard.

by We Want to grow the Business (but we know how)
| 2441 views | | 8 replies (last February 8, 2021) | Reply
Post ID: @OP+19hvku5C
Comment! It's anonymous!

8 replies (most recent on top)

To commenter replying to OP... LOL...
I think you missed the point and also apparently have no idea what the direct channel is currently writing in the way of dumpster fire coverage / compliance mess. OP was clear that the agents coasting on renewals should get the boot and allow growers to grow. (it was mentioned twice)

You were so butt hurt over the comment that the direct written business was so c-appy that you couldn't get through the rest of the comment.

We'd all be interested to know what part of the company you fit into but also claim to not be a part of the mess. Manager in one of the direct channels? Were you with Esurance and cut because of the constant losses, yet think the agent channel (that produces 80+% of revenue and profits) is a lost cause? Comical, you can't have it both ways.

by Read between the lines
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Post ID: @2hck+19hvku5C

To OP: Bashing the CIC's to defend the agents is symptomatic of some of the problems Allstate faces in today's business climate. You are obviously part of the sales process; management or perhaps an agent. The days of you dictating the company's agenda while disparaging business partners in other departments is over. The current EA model is not sustainable in its current form, it is too expensive to support an extensive back office to do things agents have the means to do. The days of entitled agents living off of residuals and not writing new business are over. And, as I have already said, the days of agents justifying their expensive existence at the expense of others on the same team and pursuing the same customer service goals are over. Whose fault is it that many customers no longer see the " value add " of having an agent? Candidly, this should have been done long ago in a more orderly, incremental and compassionate fashion. Now Allstate, using sub- par senior leadership, is playing catchup while mimicking the USAA, Geico and Progressive models. I firmly believe this is going to get a lot more painful before it gets better. And for that I am 1) sorry and 2) forever grateful to not be part of this mess.

by Anonymous
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Post ID: @1elm+19hvku5C

The truly sad thing is that these numbers are before the recent paradigm shift in claims handling that occurred in December. Just wait until those numbers are calculated... This will be catastrophic.

by Anonymous
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Post ID: @cat+19hvku5C

Prediction. Stock buy out from competitor.

by Anonymous
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Post ID: @jdg+19hvku5C

Terrance Williams and Glenn Shapiro need to resign. These 2 id–ts k–led the agency force and their heads are going to spin with a bunch of upcoming lawsuits against them.

by Anonymous
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Post ID: @vxg+19hvku5C

Blue Ocean lol!!!!!! Agents never believe any of that.

They are trying to hire Uber style agents to sell from home and it’s horrible. Like 20 people maybe total in the whole country. They program will fail too. R-3001 is so weak! They are coming to flip that country wide and ruin TPP. The way leadership behaves is unreal.

Literally had an FSVP threatening the entire agency distribution at Town halls that our business model is in a fight for relevancy and that we have the highest operating cost of any competitor. I’ve never seen leadership at any organization be so condescending to the EAs. So inspirational!!!

Allstate is a toxic dumpster fire.

by Blue Ocean 4Eva
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Post ID: @bgq+19hvku5C

Anything involving the agents you're wasting your breath. The Direct model has been entrenched. Allstate agents will be no more in about 3 years. Word is the company will be up for sale and acquisition in about 5 years and the potential suitors do not want to purchase the agency channel.

In other words there is no need for agents to come here and give suggestions that involve agents saving the day. Sadly the agents are on their way out and Allstate will find performance and other metrics to take agent books of business by force without having to pay agents a penny for it.

by Anonymous
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Post ID: @vws+19hvku5C

Improve Claims Service!!!!!
You have everyone overworked because you fired 1/2 the claims department. If we piss off our customers when it is time to put up or shut up, we lose!

by Anonymous
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Post ID: @xig+19hvku5C

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