Has there been any more talk about the sales goals for 2024? I keep hearing that the agents will be forced out in the coming year. When are goals announced?
20 replies (most recent on top)
I went from insurance to the auto repair industry, from what I have seen when it comes to auto repairs the ones that are having coverage issues are the ones buying their insurance online and not talking to and asking questions with an agent face to face. These customers have high deductibles and low coverage amounts. They are mainly from Progressive and Geico, but I am seeing them from Allstate and others as well who "chat" to get insurance.
It may seem convenient to get insurance online, but it will be a PITA when you don't have the right coverage or have rental coverage.
If CCC doesn't know to have comprehensive with full glass and gives the customer a $1,000 comp deductible, do you think a customer buying online is going to know the difference. Yes in some cases but come on, we've been seeing CCC writing comp with no glass in error for some time now.
FFS, I guarantee you that more than half of current agents have never fully read ofmr studied the policy contracts they schlepp.
AI is tightening up at an alarming pace and will have better reliability than 99% of agents Just like it is doing now with chess players.
Plus it scales up such that it can do the work of 10,000 agents in nanoseconds and 24/7 and never sue the company, ask for benefits or commissions.
Wake up agents, your days are numbered. claims, underwriters, adjusters, actuaries, trainers, and all the management layers for each.
Approximately 50% of Progressive’s premium is placed by insurance agents with the balance being direct. The people who think agents are going away anytime soon are probably the same ones who use WebMD instead of visiting a doctor or use online do it yourself legal forms. There is a subsection of consumers who (think they) can do these things themselves until they’re burned by their own choices and then there are educated consumers who realize the importance of consulting a knowledgeable professional and will continue to do so. Travel agents, cashiers, etc. don’t have to pass a licensing exam to gain entry into their profession and also undergo continuing education.
A young girl walked into my office with a progressive quote on her phone and I offered to look at it the recommendation of coverage pre selected had a $2:000 collision deductible. This industry is a shitshow that is required by law and run by private corporations that remind me of the sackler family.
State Farm is a dysfunctional dumpster fire and taking major losses per quarter as well. Just look at their board at this site. The same ridiculous BS going on there as Allstate. And they are reducing their agent numbers as well. Market share does not mean business is being done ethically or at the best interest of their insureds and agents.
so obsolete that State Farm still holds the most market share
Exclusive Agents are going the way of the dinosaur. This is hardly shocking. The handwriting has been on the wall for 15 years.
@2oca I totally agree with your assessment. However I think this company's brass is beyond caring about the customer's best interests at this point. I see a lot of shrugging anymore when it comes to issues that the company considers customer initiated.
Geico makes it seem like buying insurance is just like buying a plane ticket or booking a hotel for a trip. It’s a lot more complicated than that though especially if you have multiple vehicles, residences, and other assets to protect. People often think they are covered for something like rental reimbursement only to find out at the time of a loss that they are not. That is where exclusive and independent agents are helpful because they talk to you about what your coverage means. Everyone may not think they need one, but personally I have always had an agent even before I worked for Allstate and they have always been beneficial for me. It gives me peace of mind to know that I’m not just guessing my way through what I may or may not need.
People can do a lot of things by themselves online. We see what typically happens when the public tries to play their own insurance agent. Cr-ppy or missing coverage. Think how about d-mb the average person is. Then think about half the people are d-mber than that.
Agents may be here to stay but at the fraction of numbers with little to no support from ASIC, underwriting, Claims, or from the field. Even agency tech support is being downsized. Much like the customer our agents will soon be completely self service and those agents who cannot cope or handle this new way that is coming will be gotten rid of.
Agents may be here to stay - but there will be a helluva lot less of them in 1-2 years. After 35 years - I've had it. Let some other young energetic tech-savvy person can come in and blow thousands and thousands of marketing dollars to chase some ever elusive year end bonus that is a "moving target" !
Agents account for about 80% of our PL business, according to the nifty little article on Allconnect this week. The company can’t possibly totally dump agents and rely completely on direct to make up for that volume next year. Especially now that the CCC has gone to vendors. The company is trying to change the agency model so they can be viable into the future. Sorry, agent haters, they are here to stay.
Allstate has stepped far away from relationship building. That’s all an agent was for a customer. It’s a do it yourself world now for the cheapest price. The Information Age is upon us and people are learning more on their own. They don’t need an agent to buy a policy when they can do it themselves online for hundreds less per year. There’s no coworker relationships and no agent / customer relationships. Allstate is a remote company with more and more customer service reps offshore. People don’t want to talk to these people so they just go online. Just what Allstate wants them to do. How are the sale goals for September ? No one is talking about it I wonder why. We are tanking. Again.
I do not know of one person under the age of 60 who wants to mess with an agent. Agents are becoming obsolete and coincidentally the insurance companies that are having the most struggles cling to this outdated agency method.
Travel agents, customer service reps, cashiers, etc. etc. Insurance agents will go the same way as these and many other jobs have gone; into extinction because they are no longer perceived as adding value by customers. You can complain, sue, unionize or do whatever you want but the writing has been on the wall for so long that Allstate now has to play catch up ( shame on TW and the rest of Sr. Mgt. for that! ). The USAA, Progressive and Geico models are the future. Agents are not evil, just anachronisms from the recent past. This trend is irreversible and global. The trend is clear; direct to consumer with a heavy dose of self-service policy maintenance. And just for the record; I have almost 30 years of experience at Allstate, started in 1980 when the agent was king. No sense fighting this, leverage it or get out. Good luck.
If an agent can’t write enough business to meet any “production goals” they don’t deserve to be agents. Barely meeting goals is a losing proposition. Not necessarily a fan of goals, but the reality is that the company is doing an agent a favor by running them off before financial disaster occurs.
Agents are being squeezed out. Over 3000 agents gone in the last 18 months. It is almost impossible to make money as an agency anymore so Allstate is forcing them out through "surrender". At the current rate the agencies will pretty much take care of themselves by late 2025 into 2026. Allstate brass is all in with their direct initiative regardless. Soon all field and corporate support for agents will be gone in the next 2 years. So.....no way to make money and all support gone. Sounds like a way to force mass agency exits to me.
How in the world can any agent claim to “feel way more confident in where we’re headed” gone are the days of sons inheriting agencies ! Brhahahaha! What is this 19th century England ? You be working for da man. Da man is TW. Now don’t you go forgettin that ya hear? Brhahahahhaa