Pretty much crapping all over the agents and making excuses for CCC and the Direct/ASC product that is rolling out. Our FSL's have been telling us for a while that there is a plan to go full direct and absorb exclusive agency books through forced attrition and termination. We exclusive agents either need to get collective representation for what is coming or need to see about getting out while there is worth before corporate takes what is ours by force without compensation which is their dirty plan over the next 2-3 years.
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Most here have already made legitimate statements about the direction of the company moving away from EAs. Based on conversations I have been a part of, the goal is to reduce agent levels to around 3000 by end of 2024. However, we have tried the Direct model before. Perhaps based on leadership or how we did it, it was such a failure that we moved to “the trusted advisor” model and got rid of the Direct book. Round and round we go so give it 3-5 years and we’ll be right back where we started. Luckily, by then I won’t be around to help rebuild what was lost based on poor leadership decisions.
Progressive AFAIK have direct writers in call centers and then a huge indy network.
Management has to say agents are integral as they don't have the infrastructure in place yet to go direct or further integrate pure IAs.
What they have done to agents over the past 5 years would beg to say their actions don't entirely match their words. Agents are seeing and feeling the actions much more than what the brass is saying.
And let's not forget that if you listen to what prognosticators are saying about the future of AI that insurance agents (and thankfully lawyers) are among the top 5 job sectors most likely to become extinct in the next 5-10 years.
Claims people, underwiters, and actuaries should be fearful of the future as well. And that large erasure means layers of management goes too. A robot CEO making decisions would be a welcome improvement also!
I lost count of how many times Troy, Mario, Tom, and others said at the conference that exclusive agents are critical to Allstate’s future and that the company doesn’t succeed without the agents. I would like to believe that they were telling the truth. I think it’s more likely to be true if more agents invest, grow, and bring in more premium and bundled policies. A growing channel is a valuable channel. I don’t see them getting rid of the channel altogether. Even Prog has agents. We can’t go fully direct because even they aren’t. But Elite agents are probably the safest.
Allstate obviously has set sail full ahead for a direct model. Whether they do not understand the importance of the EA's to their sales and overall placement or simply do not care due to very short gains for TW and the few in his inner circle and the top level investors what is done is done. Kind of like Transformative Growth. There is no going back and Direct is what is happening at Allstate. Personally I think it will be the final nail in the coffin but it is their coffin to lie in and apparently they find it pretty cozy.
My prediction: EA's gone completely in 2026 and the company gone by 2028-2029 after completely failing financially as we have started seeing since earlier this year with the removal of EA's accelerating the final end.
We haven’t had FSL’s for 3 years.
You are looking at it partially.
Most IA's offering 10 products know 10% about each where an excluding knows 100% about 1. They know how to fix issues, who to talk to, partnerships etc.
The problem for Allstate is if they were always lined up side-by-side with 9 other carriers they would have to either innovate or price better or their sales would tank. A good LOCAL captive was able to overcome many of AS's failings and now AS is showing them the door.
You don't understand exclusive vs IA
Being able to offer multiple options is greater than one. Would you goto one fruit stand for your produce or 10 different ones?
Allstate doesn’t seem to understand the value of the EA. It’s legitimately the only competitive advantage they have currently - there’s a significant value in having a customer only being offered one policy instead of being offered 10 in an IA’s office. Just seems like TW and the ExCo don’t understand the IA or Direct market, they just see how expensive EAs can be.
Allsnake is going the way of others in seeing agents as an expense rather than the keystone of revenue production.
Liberty Mutual offloaded their agents to Comparion and soon the Libery Mutual brand will be direct/employer-based sales-only leaving the agents to only schlepp Safeco and other carriers.
Farmers is hacking agent commissions (like AS) hoping to downsize their footprint to only the largest as they ramp up new call centers for direct sales.
AS has been copying the the same and with AI coming to refine it is easy to see in 5 years there will be few of any agents remaining.
The longer they stay the lesser they will ever see of their TPP. Time to turn off the lights before the electric company does it for you.
Only State Farm will retain captives and the rest will be independents.
How did “T” ascend and take over the Sales organization? Outside hire, middling performance in Midwest and N Central regions. Outplayed and outlasted all the legacy FSVP/FVP talent. Of course Shapiro preferred a clean slate to minimize the resistance from Field to his changes.
I've heard different situations regarding both from reputable parties regarding both. With how they have totally changed the agency compensation to make it almost impossible to make decent profit, Allstate corp undercutting their own agents with additional 7% off for binding direct, slow disbanding of agency services and underwriting functions that are agency facing, and the upcoming reductions in force involving field sales management and representation I would lean towards Allstate eliminating agents in the coming years. Or at least keeping just a very limited agency force that brings in the highest level of retainable and profitable business it be a support area to the direct model that Allstate seems to putting all of their eggs into. It seems the vast majority of agents are being forced out one way or the other. Time will tell I guess.
Yeah, that's not my take away from the Agency Conference. And your FSL is full of cr-p and guessing to stir you up. They don't even trust FSLs with comp changes because they are notorious for having loud mouths. Let alone a company strategy shift that would have massive repercussions.
The FSL is most likely trying to get YOU to sell and move along.
If the exclusive agents can get bargaining going there will be a parade of claims adjusters who will join you. It’s very painful to watch with no voice as this company disintegrates before our very eyes. TW and his minions love cheap serf labor overseas and hate the American workers. We are all getting bulldozed here little by little so multi million dollar salary and bonuses can be had for those at the top.