I agree with someone who said that there is no chance to compete with them with the current agent based model. Perhaps someone disagrees?
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Policy count dropping heavily and losing more market share. Transform is not working
I deal directly with agents. They’ve lost many loyal customers due to the massive layoffs in claims over the last two years. Customers were willing to pay Allstate’s higher premiums before the transformative growth layoffs because of the great customer service in claims but now customers are leaving in droves. Agents tell me Allstate’s rates aren’t competitive.
They can, it just depends on which state you are in, I have friends that are Allstate agents and State Farm agents, both are getting lots of business from Progressive but mainly GEICO as they are using lower coverage to get lower payments and then when the customers figure out what is going on they are getting customers (back or initial).
The 2 Allstate agents I know are successful and said if the Allstate agents that are complaining would spend less time complaining and more time hiring sales oriented LSP instead of those that just to customer service they would clean up as well, both said the wouldn't tell them that as they have plans to but additional agencies.
At this point one has to wonder how poorly Allstate would be doing if they didn’t have the brand recognition. There is very little to like when you look behind the marketing and branding. Expensive, dated, not innovative, poor leadership etc.
Wilson, Shapiro , and Williams could not do it. Why because they hire the worst least leaders from c r a p p y companies
The results indicate a strong no.
Allstate has been selling online for 20 years. They have tried to grow direct organically and through acquisition (Esurance.) This leadership regime has been given a chance to grow their online presence. They have failed on every turn. A great way to do this is hire talent from Geico and Progressive. However, Allstate is hiring talent from Farmers and Nationwide. It's easy to point the finger at the agency system. However, Progressive is getting 50% of its business from agents. Progressive, does a better job with its expense ratios than Allstate. Let's face facts, old Sears management mentalities are not grow Allstate online. Don't blame this failure on the Agents.
The insurance industry is changing - there will still be a need for agents for the foreseeable future. Probably don’t need as many agents. Many companies are changing their compensation plans which should naturally eliminate many of the low producers. Allstate’s biggest issue is their rates are too high to compete over the long haul. They always had great claim service until the last two years- that’s why people were willing to pay more. Now with all the cutbacks the claim service is horrendous.
Clearly not.