I am in talks with Allstate about opening a new book of business. I am meeting with the manager to discuss Baseline Cash Flow Analysis next week and would like to see if anyone has any tips on questions I should ask or what I should know going into this. Also, what is the official approval process for Allstate. I am already in the State Farm approved candidate pool but haven't had to go through anything like this with Allstate. Should I be expecting it soon? THANKS!
Allstate Approval Process
- Thread starter Boston
- Start date
I don't know anything about the Allstate process but I do welcome you to the forum.
I will make this very simple for you, and hopefully you will run from Allstate as quickly as possible.
1st. Walk into some establishes agencies (and not the ones they tell you to go to) and ask the agent for some feedback on coming on with Allstate.
2nd You will never hit those baseline numbers that they want to go over with you. If Allstate where you are at is anything like virginia (where I was once an agent) you will get creamed by other captives, and if you are going up against an independent.
3rd. You will get treated like an employee, even though you are independent. So you will have managers riding your back from day one, and telling you that you have to be open a certain amount of hours per day. This is a blantant violation of IRS laws concerning 1099 employees. Check into what happened with Fed Ex a couple of years back.
4th. Take a stong look at the agent contract. Allstate has no skin in the game and the contract completly favors the company. Ask how many scratch agencies have made it in the past 3 years.
5th Ask how many agents had policies non-renewed in the past year. I personally know agents that have had 2/3 of their book non-renewed in the past year.
Bottom line is this, I went to class with 14 agents in 2005. ONly 2 remained in 2006, and only because they purchased a book of business. They only reason that I did not go broke, was because I was well capitalized. And before you think I am just a whiner who could not sell know this. In the entire year that I was with Allstate I wrote 45 policies. As soon as I left Allstate I picked up about 5 independent contracts and wrote that many policies in about 2 months. My policy with allstate for home and auto was 2200 a year( with my agent discount) I moved it to another company that I currently have with the same coverages and deductibles and went down to about 1275. And not to mention that the premium has held for going on 3 years now. The only thing that Allstate has done that was good was to get rid of that POS CEO Liddy. Stay away, stay far away. And if that did not convice you, PM me, I have lots more.
1st. Walk into some establishes agencies (and not the ones they tell you to go to) and ask the agent for some feedback on coming on with Allstate.
2nd You will never hit those baseline numbers that they want to go over with you. If Allstate where you are at is anything like virginia (where I was once an agent) you will get creamed by other captives, and if you are going up against an independent.
3rd. You will get treated like an employee, even though you are independent. So you will have managers riding your back from day one, and telling you that you have to be open a certain amount of hours per day. This is a blantant violation of IRS laws concerning 1099 employees. Check into what happened with Fed Ex a couple of years back.
4th. Take a stong look at the agent contract. Allstate has no skin in the game and the contract completly favors the company. Ask how many scratch agencies have made it in the past 3 years.
5th Ask how many agents had policies non-renewed in the past year. I personally know agents that have had 2/3 of their book non-renewed in the past year.
Bottom line is this, I went to class with 14 agents in 2005. ONly 2 remained in 2006, and only because they purchased a book of business. They only reason that I did not go broke, was because I was well capitalized. And before you think I am just a whiner who could not sell know this. In the entire year that I was with Allstate I wrote 45 policies. As soon as I left Allstate I picked up about 5 independent contracts and wrote that many policies in about 2 months. My policy with allstate for home and auto was 2200 a year( with my agent discount) I moved it to another company that I currently have with the same coverages and deductibles and went down to about 1275. And not to mention that the premium has held for going on 3 years now. The only thing that Allstate has done that was good was to get rid of that POS CEO Liddy. Stay away, stay far away. And if that did not convice you, PM me, I have lots more.
If you are considering Allstate about becoming you need to send an email to [email protected] and ask for a secret decoder ring. It is a newsletter about the inside workings at Allstate."
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