Allstate Agency

I was a scratch agent with Allstate from 3/2008 until 3/2009 when I closed my agency.

My #1 issue: you only have one product to sell- a one size fits all. The month I opened my agency Allstate raised rates 20%+ on homeowners. Five months later another 20%+ increase (in Ohio).

My #2 issue: linking financial sales to your P/C bonus compensation. In Cincinnati over 75% of the agents are not hitting their financial goals. This is costing them lot's of money in lost bonuses, prevents them from buying books of business, travel, etc. Almost without exception those that are hitting their numbers are writing business on themselves/families/employees. The largest agent in Cincinnati recently sold his book and bought a large book at Nationwide for this reason.

When I left Allstate I went to an Internet quote site and every quote I received was lower than Allstate.

If I could start over I would get my license and go and work for an independent agent 30+ miles away from the market I wanted to work. I would get paid to learn the business before starting my own independent agency.
 
I have to admit, I am curious about why so little talk about AllState in relation to Farmers and State Farm on this forum. Is the opportunity at AllState that much worse than the other two, or are there other reasons involved? After reading superdave's post, I recall my agent with AllState leaving the business after 4 years and no real explanation. I also, I know the one time I asked her about life she mentioned Jackson Financial. Are AllState agents captive when it comes to life?
 
I was a scratch agent with Allstate from 3/2008 until 3/2009 when I closed my agency......If I could start over I would get my license and go and work for an independent agent 30+ miles away from the market I wanted to work. I would get paid to learn the business before starting my own independent agency.

Here is good advice from someone experienced for those interested in the P&C game.
 
I have to admit, I am curious about why so little talk about AllState in relation to Farmers and State Farm on this forum. Is the opportunity at AllState that much worse than the other two, or are there other reasons involved? After reading superdave's post, I recall my agent with AllState leaving the business after 4 years and no real explanation. I also, I know the one time I asked her about life she mentioned Jackson Financial. Are AllState agents captive when it comes to life?

Allstate is for the "fair haired" boys in town. If you don't have some real money laying around or not willing to put it up, you have to look at other options.
 
First a little disclaimer, I am not nor do I have any interest in becoming an AllState agent. I was just curious as to why so little interest was show in AllState when compared to State Farm and Farmers.

A rather strange stance when you consider you do not own your book of business. Also, with AllState's reputation concerning claims, it seems that those that might be able to go with AllState would have little interest in them. I understand that it is difficult to start as an independent in P&C, but if you have that kind of liquid reserves, isn't indy a much better option?
 
First a little disclaimer, I am not nor do I have any interest in becoming an AllState agent. I was just curious as to why so little interest was show in AllState when compared to State Farm and Farmers.

A rather strange stance when you consider you do not own your book of business. Also, with AllState's reputation concerning claims, it seems that those that might be able to go with AllState would have little interest in them. I understand that it is difficult to start as an independent in P&C, but if you have that kind of liquid reserves, isn't indy a much better option?

It's not talked about because Allstate Agents are not posting on this forum.

Here you have the dead end kids. Allstate agents go on road trips and pass out scholarships, and their wives live in a world where their hair doesn't move.
 
I have been an Allstate agent in New England for over 20 years, I recently sold my agency.

People in AND out of the company have a lot of negative things to say about Allstate and I think that is because as BIG as they are, they become an easy target. But, as an insider, (er, former insider), I thought I would chime in and give my .02¢:

What is good about Allstate:

Allstate has really stepped up the marketing machine and increase awareness on pricing, coverage and the value of the Allstate agent, more so than any other time during my career.

When I met clients, I have NEVER had to sell the company OR myself. Allstate has to be one of THE best branded names in any industry, but certainly insurance.

If you are doing a scratch agency and have good marketing habits, you can really cash in IF you are willing to work hard and smart.

Allstate consistently works with agent focus groups in order to make change that will benefit the agencies. These groups are composed of the most productive agents in the local area. The new products and new technology initiatives that are being introduced now are clearly what the agents have been asking for.

As you build your agency, you have an "economic interest" that you can sell to an interested buyer. Despite the few negative comments I saw in the thread of economic interest vs BOB ownership, I can tell you first hand that you WILL profit nicely when/if you decide to sell. Personally, I don't know what independent agents typically sell their agencies for, but I sold mine for 3x my agency commissions earlier this year AND had several qualified buyers make offers for it. If the grass is any greener on the other side of the street, I am sure it isn't by much.

Are there any negative things I can say about Allstate? Probably, but honestly, I would tell you to do the same thing that I did 20 years ago when I started with them. Find the best agents, the ones who are growing at 20% or better every year, or the ones that have $7-10 million BOB's and ask them what THEY hate about the company. You will find out that instead of hearing them gripe about what the company DID NOT give them, they will spend more time PRAISING what the company DID give them and how they used it to there great advantage.

Bottom line: Are there better companies out there? Sure. Is this the only place to make money? Nope. Someone once said, comically, that if you see a fork in the road you should take it. If there is were you have been lead and you see the opportunity, then you just have to decide whether you want to jump in with both feet and do it, wait for the next opportunity that comes along.

Good luck to you and feel free to contact me with and questions you may have.

Rich
 
Rich -

Good response. I'm not affiliated with Allstate, but I do have a lot of respect for the company. It's easy to find fault with any company, the successful people find a way to move past a speed bump rather than stopping and complaining that they migh scratch their bottom side going over it.

Sure, Allstate has had a few lumps, so has State Farm, Farmers, AAA, Blue Cross, Blue Shield, Health Net, Kaiser, and virtually every independent agency out there. It's not that you have lumps, its how you move past them that builds character.

3X earnings? That's pretty awesome.

Dan
 
Back
Top