Allstate announces CL runoff in 5 states today.

[AZDave]

Management: It's only 2%.
Allstate Agent: Bullshit, that is a 22% pay cut!
Indy Agent: Hey, I'm still getting 12 & 15%!

With the heavy service work with auto and home, Agents can't make money at 7%.

 

[Al3x Lee]

Management: It's only 2%.
Allstate Agent: Bullshit, that is a 22% pay cut!
Indy Agent: Hey, I'm still getting 12 & 15%!

With the heavy service work with auto and home, Agents can't make money at 7%.

Hell, it's a struggle at 12% lol. I can't imagine 7% unless they have less overhead?

 

[shawnmwalker]

No one wants the renewal rights to a book right now given the state of things. Go ask a carrier for a book role deal right now. In years past it was EVERYTHING. Now, ah, we are not interested in that right now.....

 

[Al3x Lee]

No one wants the renewal rights to a book right now given the state of things.

Pretty scary times when no one wants renewal rights lol. That's kinda the whole name of the game in insurance

 

[Markthebroker]

Management: It's only 2%.
Allstate Agent: Bullshit, that is a 22% pay cut!
Indy Agent: Hey, I'm still getting 12 & 15%!

With the heavy service work with auto and home, Agents can't make money at 7%.

Lolz, dude, why would anyone want to be captive. Seriously.

 

[marindependent]

cutting commissions from 9% to 7%. ouchie

WOWWWWW that is not a lot of money

 

[insuranceguy88]

Allstate is reducing average renewal commissions from 9% to 7%, but increasing new business commissions from 9% to roughly 30% depending upon the product mix. The renewal commission change only applies to new business written in 2023 and going forward. If you bundle home/condo with auto, then the renewal commission stays at 9%. When combined with the annual bonus plan, the new commission plan can be very lucrative for agents who are actively growing their agency.

 

[Al3x Lee]

Allstate is reducing average renewal commissions from 9% to 7%, but increasing new business commissions from 9% to roughly 30% depending upon the product mix.

So bleed the loyal customers out the back and churn new business. When has that not gone well?

 

[Markthebroker]

Allstate- "We're non renewing commercial lines and cutting agent commissions"

State Farm - "Hold my beer"

 

[shawnmwalker]

State Farm Stops Taking New Applications for Business, Personal Lines P/C in California (insurancejournal.com)