Can anyone share insight as to the companies position on agents not meeting required items each month? Only met goal twice last year, goals were then raised and have only met 1 time so far this year. What is known about about job security and long term company plan for these "underperforming" agents?
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Allstate pulled line 10 and 19 from the Independents in several states.
As an example your minimum line 10 autos last year were 10 and to get variable is 25. If you miss the ten number they will watch you and warn you. If it goes on too long you will be gone.
I believe that industry leader, as noted below, also said that when agents are happy and the company is doing right by them, that the company does well.
Since then, we’ve lost a third of the agents.
Tom thinks Allstate is successful because of the pricing sophistication that they have - the reality is, the EAs are the only reason Allstate has been successful.
The EAs allow Allstate to effectively only compete against one carrier (the insured’s current carrier) rather than the IA space where it might be 12 carriers quoting on a comparative rater. Some IAs even pay a higher commission when you quote directly on the platform rather than through a comparative rater to try to limit the competition (get closer to the EA power).
Thought it was great when they had an industry expert speak to a large group of Allstate employees about two years ago and he touted the huge advantage of the EAs - then Allstate leadership seemingly took that as an attack on them, so cut the EAs pay even more.
The below synopsis is right on...except for "mega" agencies - we are on our way out.
The sad reality is Allstate brass sees the exclusive agent as an expense liability. They do not value or respect the exclusive agency channel. They do not value the sales the exclusive agents bring. That is just the sad fact. The inept, incompetent, no business acumen "leaders" of this company fail in every aspect of running this company as a viable insurance business. They don't value or respect any position or role in this company because they have no clue what they are doing. Just a rudderless ship cruising aimlessly through rocky seas bouncing off icebergs constantly and occasionally tossing pour souls overboard to the sharks as a sort of sad scapegoat for their regular failed initiatives and processes. The leaders of this company are weak, pathetic clueless sots who really couldn't hack it at more productive and stable companies. The exclusive agency network is doomed and it is all by design and the process is being expedited by failures in execution by home office.
As I recall the average tenure for an LSP is (or was) about 6 months. You're past your sell by date anyway. Move on.
If they are treating the agency metrics and goals/quotas like they are the corporate roles then they are pretty much setting up agent's to fail like they have many corporate roles. Then they can "terminate" without any severance or payout....or in the agencies' cases terminate without any buyout or monetary compensation. Plus it is well known that corporate wants to trim off a large percentage of exclusive field agencies and only keep the workhorse highest performing exclusive agents while focusing on the independent agency model and process.
Main gauge is the line 10 auto quota that must be met each month. If 8 months are missed on a 12 month moving basis - agent can be terminated ( and probably should be).