We have a successful office with two long time very experienced LSP and one newer. We have always hit our numbers from call ins and referrals. Our phones rang off the hook. Now that Allstate took over the phones for the EA offices the phones don’t ring and now we are having to call out for autos. We have never needed to do this. I read that Allstate reported only one out of 60,000 calks should have gone to the agent as a sale. So now on top of losing all work item prem change reports needing to use the New reports it is much more time consuming for retention. So is this the end? Is this a long slow painful death of the EA office. Can we pull together and call out begging to give quotes and still make the numbers work? Am I the only one who is having these nightmares? Thanks in advance.
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Question - I thought exclude agencies purchased and maintained phone lines to the franchise. Why would an exclusive agent need to be forwarded against a competing owner broker that can redirect new business quotes? Has there been any lawsuits where they didn’t just pay off the ea’s suing?
Allstate facing lawsuit from agents' group - headline 2021
THE FIGHT CONTINUES FOR NAPAA AND AGENTS AGAINST ALLSTATE INSURANCE COMPANY - headline 2022
First, the judge ruled that NAPAA did have standing to bring the claims against Allstate on behalf of its members. “The court recognized that some of the claims against Allstate impact agents across the nation,” said NAPAA's Executive Director, Ted Paris. “It is critical that our members understand that NAPAA exists in order to help support them in multiple ways—and one important way is by ensuring that Allstate is living up to the terms of its contract with agents. The judges ruling enables NAPAA to continue this fight for agents' interests.”
Second, the judge refused to dismiss some claims brought by NAPAA against Allstate for breaching the contract by allowing Independent Agents (“IAs”) to sell in territories serviced by Exclusive Agents (“EAs”). Allstate has promised, in public statements and over its history with agents, that IAs will not compete in areas already serviced by EAs. Instead of abiding by its own statements, Allstate has authorized hundreds of IAs to directly compete in the same areas served by EAs.
Finally, the judge refused to dismiss any of the claims brought by individual agents for various breaches of contract, including unjust terminations for cause and improper interference with the sale of their agencies. One of the primary benefits of being an EA with Allstate is your ability to sell your book of business. Allstate does not have the right to interfere in the negotiations between an EA who is selling his book and potential buyers. But Allstate did just that—steering potential buyers away from purchasing one EA's book, and guiding that buyer to other EAs instead; interfering directly with negotiations regarding selling price, and forcing agencies to be split before selling. In addition, Allstate unjustly terminated agents for alleged infractions. But the reality is, these same agents were some of the most successful agents who were earning high commissions from Allstate.
“We are thrilled that we can continue to fight for what is right in this case,” stated James Bopp, Jr., lead counsel for NAPAA and the individual agents. “Contracts mean something, and powerful, large corporations do not have the right to violate their contracts. This is especially true when a company like Allstate writes the contract and requires the agents to sign the contract, as written, with no negotiation as to its terms. We look forward to working with NAPAA to vindicate the agents' rights against Allstate.”
I thought exclude agencies purchased and maintained phone lines to the franchise. Why would an exclusive agent need to be forwarded against a competing owner broker that can redirect new business quotes? Has there been any lawsuits where they didn’t just pay off the ea’s suing?
Tom wilson is the problem not the solution. He despises agents
does your office have a "lead line number for your marketing? if not , this is your solution
Following. You are not alone.
Nice story bro.
It is no surprise that Allstate only wants to keep select high volume agents spread out over particular areas. They are purposely choking off the EA's and pretty much setting them up to fail or at the least cry uncle and leave on their own. Kind of like they did to corporate employees during one of the most infamous phases of "Transformative Growth".
Allstate has put in all their chips with the new ASC product and a more direct model. They want to become Progressive and Geico with a stubby little agency tail. And that agency is independents, not exclusive.
They have hand picked the EA's they plan on keeping in what areas. The rest they plan to starve off and to force fail. There for they can say to the agency owner "you're fired" and take the books without compensation for cause (not meeting contractual obligations and sales requirements). They value their India employees and their relationship with their vendor partners far more than the exclusive agencies at this point.
Safe to say it is a bumpy ride down the hill and eventually off the cliff.