Allstate Chair, President, and CEO Tom Wilson said the company’s expense reduction program is “well laid out” and “includes everything from using digital processes and getting rid of extra labor to using more outsourcing and cleaning up our processes and reducing our technology costs with the new platform.”
In December 2019, Allstate laid out a “Transformative Growth Plan that leverages the Allstate brand, people, and technology to accelerate growth in its personal property-liability business.” In September 2020, Allstate said it would cut costs with a restructuring “which will impact approximately 3,800 employees primarily in claims, sales, service and support functions.”
It was unclear from the earnings call if “getting rid of extra labor” would signify a similar effort.
Wilson said Allstate has been “a leader in product innovation, multi-channel distribution and leveraging technology in telematics and claims settlement” and is working on “building a low-cost digital insurer with broad distribution through transformative growth.”Allstate President of Property-Liability Glenn Shapiro said the company is “leveraging advanced claim capabilities to mitigate loss cost pressure” for customers.”We’re broadening strategic partnerships with part suppliers and repair facilities to mitigate repair costs,” he said. “We’re using advanced claim analytics and predictive modeling tools to optimize repair versus total loss decisions and to assess the likelihood for injury and attorney representation on casualty claims. The bottom line is we are highly confident in our ability to restore auto profitability to targeted levels.”