Ding Do-g The Witch is DEAD!

We have been listening to plenty of nonsense from Tom Wilson about his transformative growth as he is cleaning house for the ultimate sale of Allstate Insurance Company. One reality that will hit Allstate between the eyes is the 4000 agents that have become disenfranchised by Allstate by forcing them out of their agencies. These former Allstate agents will start going after THEIR old customers insurance business. These customers that will be obtained by the ex agents will be high lifetime value customers generally with Home, Auto, umbrella and landlord policies. These policies are highly profitable and stay on the books for double digit years. Moreover, these customers are great life insurance prospects also. Allstate’s non-compete is a joke as it stands. To make things worse for Allstate, the FTC is contemplating making noncompetes unenforceable in the UNITED STATES. Please cut and paste the following link to your browser for further action being taken by the FTC:

https://www.usnews.com/news/business/articles/2023-01-05/ftc-proposes-rule-that-would-ban-noncompete-clauses

Allstate will be able to replace these clients with their shiny new digital foot print. Leadership will replace the the high value customers with folks who own 1 car and rent a mobile homes. This will put a great deal of pressure on Allstate profitability. The new digital customers will run for the hills when they see their premiums at their first renewal. There is no relationship established with the shiny New Digital customers. Furthermore, this will put great pressure on Allstate Commercial. The ex agents will eat the meet off the bone including Allstate commercial. The agents will have the resources of carriers that do commercial business way better than Allstate can ever do from a price and service stand point.

I challenge the Wall Street analysts and Steve Daniels of Crain’s Chicago Business to bring up these facts up when they report on Allstate. Moreover, what will is Allstate’s plan is to replace the profitable business that will be undoubtedly lost to the ex agents. Moving forward, Allstate agents will have the abil

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My money is on “the wolf.”
Bleed them dry..

I remember when the Uber project was touted by leadership as a sign that Allstate was a major player….Uber giving them business and taking it from other carriers because they are “so good.”
Turns out that they were played for a su---r by Uber…The priced in severity and expenses was not even close to reality…..
Keep telling us how great Allstate executive leadership is…I need a good laugh this morning….

@2vmr+1kzib8Ed you are so correct! Allstate can't write liability only non-standard personal lines! What made Wilson think and sign off on the Uber deal is beyond me. By no means is Allstate a commercial player. Looks like he went to the craps table and bet on green...Sorry Tom, you are playing craps and not Roulette!

Allstate has never been good at pricing vs its competitors. The fiasco with the Uber project is the most recent example. Allstate took a beating on the losses.
Allstate is led by the same Sears “has beens”..Geico is led by Warren Buffet…who do you trust to lead a corporation in 2023???
Customers leaving, needing to spend capital to keep its stock stable and dropping like a rock in customer service…..Allstate leadership is a joke above the senior leader
Level.

This is about relationships! The Agents have the relationship with the clients not Allstate. Your high value lifetime customers will not accept the ABUSIVE rate increases. The old guard Allstate customers are taking notice and leaving in droves. As the tenured customers are leaving like a Tornado in the trailer park, Allstate is replacing them with very unpredictable fly by night trash off the internet.

Allstate does not have the pricing sophistication as a Progressive or Geico. Moreover, they don’t have the deep pockets of a State Farm to weather a storm. Allstate is going to survive. However, they will have less to work with after they are taking in the internet trash business. For God’s sake, Farmers is eating Allstate alive by writing all this Big Blue business. Just ask Troy Hawkes (Allstate’s Leadership Team Member) how well Farmers is doing. Troy came from the Farmers Insurance Scrap heap.

You've got a few agent groups selling the vast majority of the policies, and the actuaries know who's pulling the "undesirables" in quantity as well. They're not getting rid of anyone they don't want to lose, because the bottom line is king. As for rising premiums? It's just math, and insurance companies have literal centuries of experience in pricing this kind of thing.

Thread regarding Allstate Corp. layoffs

Ding Do-g The Witch is DEAD!

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