Thread regarding Allstate Corp. layoffs

Allstate forming new company in Michigan - ASMI?

Does anyone have any inside information on the real reasons Allstate is forming a new company in the state of Michigan to service claims? We were told it is to insulate Allstate's assets should the industry here collapse under the new reform. They're expecting many claims to go into litigation over the new law.

It seems highly unlikely they would form a new company just to send these jobs to India as well. Yet, not completely out of the question. No one trusts anything they say anymore. Transformative growth - just a corporate buzz word for outsourcing and k–ling the American dream.

I see many posts on here of claims operations moving to Pune - mostly comments on auto and property, but nothing about casualty. I left the company but have many friends still there and wonder if they will all be without jobs. Allstate does not care about its employees or customers. The comments on their social media presence are scathing! 12 bad comments to 1 good. You don't improve your reputation by sending jobs overseas while giving bonuses and outrageous salaries to those at the top.

Trying to offer the lowest priced insurance by cutting spending is not the answer. Consumers will pay top dollar for top tier service and coverage. You get what you pay for! Cheap rates with foreign customer service agents will be the end of Allstate!

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| 1811 views | | 2 replies (last February 17, 2021) | Reply
Post ID: @OP+19sXrJzs

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Allstate does not want the liability if the MCCA fails to reimburse Allstate for the MI PIP claims over $585k. If they create a separate company and put the claims in there and a small enough amount of assets they won't be liable once those assets run out.

Good hands?

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Post ID: @mzn+19sXrJzs

Claims is just a small part of ASMI. This is in line with the reasons ANJ was formed years ago. Different regulations and probably going to have their own internal underwriting due to Michigan's complexities. This will have little or no bearing on the claims org as a whole moving to India.

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Post ID: @gjf+19sXrJzs

Allstate will not be the lowest price insurance under TW. He has lowered Auto rates 3%-5% across the board in the US. That makes Allstate still 15%-17% higher than the competition in regards to auto rates. According to www.alllstateagenciesforsale.com there are about 1000 agencies for sale without many buyers. There probably another 1000 agents looking for a plan B exit strategy. That puts 25% of the Allstate agency force not engaged in selling new policies because of the uncertain future TW and GS have created. Allstate does not know how to sell policies online. This fact comes from the Esurance debacle. Moreover, there is an army of ex-Allstate agents writing existing Allstate customers.! All of these agent factors and a claims organization that drives an elephant to work is a recipe for disaster!

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Post ID: @rfp+19sXrJzs

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