Need Help Preparing for Interviews with Allstate and State Farm..

[mbomb]

Hi everyone. I'm brand new to this forum and looking to get started in insurance sales. I've have a background in phone sales, but very little face-to-face. I've about 2 years of face-to-face selling experience with physical products.

I've recently applied to 2 positions:

1. Business Development Agent with Allstate
2. Insurance Sales Representative with State Farm

I just submitted my apps yesterday. In preparation for phone interviews or face to face, I'd like to start studying potential questions.

I'd also like to find more info on the insurance industry as a whole...for example trends, outlook, major competitors and their strengths and weaknesses and types of customers. As well, I'd like to get as much background info on State Farm and Allstate as possible.

As far as I know the two companies are both industry leaders and I've heard they are great companies to work for, but obviously I'd like to learn more facts and figures.

Which company is the better choice?

I'd appreciate any input. Thanks.

Mbomb

 

[jhuang]

Re: Need Help Preparing for Interviews with Allstate and State Fa

I know that Allstate and State Farm contracts are captive, therefore, if you have a client, let's say you were competitive with his Auto insurance, but the homeowner's insurance does not fit, you CAN NOT shop the HO outside of Allstate and State Farm. It leaves you with a disadvantage compared to independent agents.

 

[mbomb]

Re: Need Help Preparing for Interviews with Allstate and State Fa

Thanks for your response. Any indepth info on the companies? Where can I find more indepth info on the insurance industry?

Btw, why did you decide to get into insurance?

Thanks,
Mbomb

 

[xrac]

Re: Need Help Preparing for Interviews with Allstate and State Fa

There is tons of stuff on here about both companies. Just use the search function.

 

[jhuang]

Re: Need Help Preparing for Interviews with Allstate and State Fa

Btw, why did you decide to get into insurance?

I got into insurance because I was in Hotel and Food Industry. Was able to move up to a postition just under the owners, but could never get the owner's position (unless I have $$$$ to buy a hotel). At that time, I figured, heck, in a recession, people need insurance as well, so it's was my recession proof idea and motive.

 

[Insurance1guru]

Re: Need Help Preparing for Interviews with Allstate and State Fa

Mbomb. Listen to me. I just sold my Allstate agency and you do not want to go to Allstate. Agents are selling their agencies in droves. In fact, the company has announced they will see 30% of the agency force leave in the next couple of years. They treat you like crap. They send threatening letters and termination letters if you don't meet their high sales demands in a very poor rate environment they give you. Why are they marketing for new agents you ask. Well they need agents to buy the agencies that are for sell. The scratch agencies for them are the best. These agents open up and grow a small $1 mill book then can't sell it so it goes TPP back to Allstate leaving you stuck with a lease and debt. They are running off lifetime agents of 30 years. These are agents that have celebrated year after year of achievements in the past but because they could not sell 250 to 330 autos in a year, they are told to leave.

State Farm is not a good place to go now either. If you go to the NASFA.com website and open the non-member public forum you will see tons of threads about their situation. Basically SF changed the contract in 2005 to an AAO5 contract and you get a locked-in commission of 10% for 4 years. After 4 years you have to meet minimum requirements or you can go to 8% commission on new and renewal commission. Apparently about 70% are coming off the locked-in rate dropping to 8%. Agents are not guaranteed a permanent position with SF until after the 1st year. You have to have 2 to 3 staff hired from day one on top of all the other expenses like rent etc so it is just brutal over there. The way to go is independent my friend.

 

[mbomb]

Re: Need Help Preparing for Interviews with Allstate and State Fa

Hey there, thanks for your input. I'm actually looking to work for an agency as a sales representative. I'm also located in Canada if that makes a difference. Most sales reps I've spoken with are happy with both companies, but say it's definitely been a tough go this year as rates have increased and people shop around.

Does that make a difference since I'm looking for employment rather than a business?

I also like the idea of them covering all my training and licensing expenses. Even if I don't stay with them, I would have all I need to work anywhere else or eventually go independent without coming out of pocket. Does that make sense? Thanks again.

Mbomb

 

[Insurance1guru]

Re: Need Help Preparing for Interviews with Allstate and State Fa

Yes of course it is a different deal working as an employee in Canada. I was referring to ownership in the USA. Good luck.