Re All State and Current Buzz

[mkmaem]

So with the current news about All State supposedly raising Car insurance premiums as well as looking to pair down car policies but up to 30 % . I can't help to think this is less to do with more drivers on the road as All state reported and more so to do with fact that since the 1980s there are now 20-25 % less All state agents and those still around being pressured increase policies have likely hired
some Producers more interested in making $$$ in the short term then really qualifying their prospective clients , meaning less desirable clients being signed up?seems common sense that as all state has forsaken their Agents over the years the quality of the new clients may as well have deteriorated ? Not to mention now talk that they are looking to reduce commissions by 1% going forward . Am i wrong to think that we will see more long term quality agents will throw in the towel and now look to retire ( adding additional stress to the All state balance sheet ) before it becomes even less attractive to be an agent for A/S ? I have considered buying an agency and have largely tried to ignore the mud slinging on this and other sites but starting to wonder if some of A/S corporate practices to strengthen their bottom line has forgotten the back bone of the company has long been their agents who are the face of the company . any thoughts ?

 

[Heather]

I do not trust Allsnake at all. In 2006 I started looking at their opportunity and they painted a grand picture. I interviewed with all these execs and was told they had chosen me(out of dozens of applicants so they say) to open up in this specific area where they wanted an agent. I asked them had there ever been an Allstate in the neighborhood and everyone said no. Turns out they were all lying there had been at least 3 agents that I know of that all failed in less than a year , one was located in the same plaza they wanted me to rent office space in. One was located across the street from where I was to be. All I did was pull out 3 old phone books and look up Allstate in that neighborhood and there they were in 2005, 2004 and 2003 each closing by the next year. After that I just walked away.

 

[xrac]

You are in good hands (for the company's) with Allsnakes.

 

[BigSteve]

In my short experience working at 3 different agencies, you get what you put into it. The first 2 failed and blamed the company for lying to them. In reality, they were terrible business people. The office that I am in now, we are always in the top 5, and I am the top producer there (thanks in part to what I have learned here). Guess what, you, they take care of you. At least I believed that 100% until an office opened up down the street last week. They still do take care of you when you give them what they want, but reality is, our market is not profitable because they only care about production #'s. The only incentive that I have to not write bad business is to avoid chargebacks. Don't get me wrong, I'm at the point where I actually try to turn non-standard drivers away for the most part, because they are nothing but headaches (a recent decision). The changes are going to hurt as at first, but will finally allow me to do some outside prospecting for better quality people. Now if Allstate would just make rates competitive in suburban areas( where their target market seems to be), that would be great. I work my ass off, I like where I am now. Maybe it's easier with other companies or as an independent, I don't know. The bottom line is that the only way I will make any real money is to be an agent myself. Oh and forget commercial, I lost money because I am the only person who handles commercial in my office. Normally that would be great, but no carriers want to write anything in CT, our brokers are mostly useless, and Allstate commercial is the biggest joke of all. On second thought, maybe it is easier somewhere else...

 

[moonlightandmargaritas]

So with the current news about All State ...

It's Allstate..........

 

[Gooner]

It's Allstate..........

I find humor that this was your first post since late July. Awesome.

Headed your way next week!

 

[skeet282]

Just like in everything else, you can't be the least expensive at everything. If you're cheap on auto bc that what you want to write, you're going to make it up somewhere else (commercial). Maybe you make the cost up by denying claims or customer service...etc. Allstate wants to write p&c. If you can make a living long term off of that then you're in the right spot. However, Allstate over the years changes things to work against their agent force bc they can. I went the indy route just bc of that!

 

[biaomaha]

It's not just Allstate, I was captive 8 years. Talk to Farmers agents, State Farm, Farm B , AMFAM. It is what it is and they control you and your growth more so than Indy companies.