Does anyone know what is going on at ABI and Ivantage?
6 replies (most recent on top)
The Allstate agent is one of the only factors holding together TC’s book of business (BOB.) Agents are doing this by skilled salesmanship and relationship building that it continues to do for the customers.The BOB is over priced. The only way this company goes completely direct is Allstate would have to lower their overpriced premiums across the board by 15%. That would mean TW would have to give up $4 bil-$5 bil in margins. TW does NOT give up margin! Contractually Allstate would have to pay the agency force about $2.5 bil in the Termination Payment Provision if they want to liquidate the agent model. This management team does not have a clue on how to sell direct to consumers. This fact was exemplified by the Esurance abortion. Nat-Gen will be a debacle also (Please refer to the 1999 purchase of CNA personal lines that was once $1.7 bil in revenue that is now reduced to the Encompass $1 bil in revenue.)
TW and GS are skinning up Allstate to put it for sale. This will be accomplished in 2 more years with an Indian Claims organization, a reduced agency force, and a leaner corporate structure. This will be TW’s golden parachute for he will be 65 and ready to throw in the towel after fleecing this company for the better part of 25 years. The Wolves are surrounding the hen house!
Allstate Commercial is a joke of an organization. First and foremost they use a system that is very cumbersome and s—s the life out of agents. An auto quote can take an hour or more to complete. The backbone of any commercial carrier is a solid underwriting department that can be used to discuss, underwrite, and price a risk. Allstate does not offer the agents underwriting access. Business insurance is of no interest to the agents because of the lack of support given by TC. As these business prospects go to competitors, they are cross sold their personal lines policies. This fact puts further pressure on Allstate retention. Wilson probably sell ABI if the right price were to come across his desk.
Ivantage has already started expanding to become direct to consumer to bypass the Agent channel completely. Smart move being done with Agents disappearing. Can't speak for ABI.
A lot of what happens with the eventually elimination of the exclusive agency channel with the implementation of direct will impact the fate of ABI and Ivantage. Without agents those areas go proof pretty quick and agents will be going proof in the next few years.
Nothing. Mirrors a pattern in place since 1979. We have not been a "commercial company" since then. Commercial has been a joke and very few agents write any of it once they get burned on rates.
I wish I knew!!