Recently home office has accused claims of paying too much and taking to long and actually asked claims senior leadership "So what is the deal?" and "How are you all going to fix this?". Either home office is totally oblivious to the problems that their "Transformative Growth" caused or they are just trying to pin their failures and poor decisions on the claims department. Could be a combination of both.
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Post below is spot on. Create a chaos environment where the core business will suffer, blame the managers and workers for it, not transforming ect. Well that's the excuse they need to sell offshoring. The less american paid workers the bigger bonuses for the managers and the shareholders, nothing else matters.
The absolutely terrifying thing here is all of us at other carriers are praying this fails for Allstate, as we all know everyone will be doing this if it shows to be profitable and legal.
This was the ploy and plan all along. At least in terms of claims. Remember claims is a big expense and TPTB really don't care about how long it takes to pay out or claims service quality. Many insureds leave within a renewal after a claim (people forget insurance is a business and not a charity) so Allstate is done making any profit off these people so what they think doesn't matter to TPTB.
So the plan...mass layoffs in claims in 2020 knowingly and purposely creating a short staffed, underperforming, and stressed environment. This results in immediate cost savings and if remaining claims adjusters and employees are demoralized to the point of quitting then a win win there...a salary not needing paid and no severance and unemployment owed.
Create a situation where there are months of numbers showing behind work, customer and shop complaints, overpaid claims due to rushing, and further demoralizing of the claims workforce. Then the next step and where we are current...throw all this back on claims employees and leadership making it seem like it is their fault for not "transforming". Give it a short time for claims leadership to "fix" before TPTB uses this as an excuse to move the whole claims shebang to India where they can hire 3-4 Patel adjusters and claims reps for the same price as USA adjusters and claims reps. It is no secret that they have been training and certifying India centers for claims auto/prop adjusting and other claims functions so they have been planning this little scheme for some time.
The endgame...most all claims functions are in India with 4 times the employees doing the work for the same or less money. Quality and customer satisfaction of claims is still in the toilet (again TPTB don't care, again expense) but costs are saved, claims are more caught up, and the mantra of "see it was the USA employees fault, India can keep up fine" speech from their lips in private earnings calls while Glenn, Tom, Brandt, and Parsons keep raking in their cost savings bonuses and shareholders remain fat and happy.
The End...
I think it is both.