Allstate CEO Says GEICO Could Strugggle with Storefront Strategy

September 10, 2013

  • September 10, 2013 at 10:44 am
    jw says:
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    SNARK ALERT:

    ““We’ve been there, done that,” Wilson said today at an investor conference in New York hosted by Barclays Plc. “It didn’t work for us.””

    It couldn’t have anything to do with the product.

  • September 10, 2013 at 1:25 pm
    SWFL Agent says:
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    GEICO storefronts are nothing new. They’ve had offices in some cities, expecially near military bases, for many years.

  • September 10, 2013 at 1:40 pm
    Dave says:
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    Many years ago I had Auto insurance with GEICO. An attempt was made to break into my 1977 Celica GT. The lock on the dirver’s and passenger doors were pulled. But thanks to the design of the car, the doors could not be opened as when the locks are pulled the locking/unlocking mechanism drops to the bottom of the door where it cannot be reached.

    1) One of the pulled locks was missing from the scene. I assume so that a key could be made which could open the hatchback lock and gain access to the interior of the car. I asked GEICO to replace all three exterior locks and the ignition lock to prevent the car from being stolen next time. They said they would pay for only the two which were removed. I paid out of pocket to have all the locks replaced.

    2) I took the car to a “GEICO approved” body shop to have the damage fixed, locks replaced and repaint the doors where necessary. When repainting the doors the “GEICO approved” body shop painted right over the unprimed door from which within two weeks the paint began peeling off.

    I will never buy any insurance from GEICO again.

    • September 16, 2013 at 11:35 am
      An actuary says:
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      Similar experience here. GEICO is great, unless you have a claim.

  • September 10, 2013 at 1:40 pm
    mikey says:
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    How will they find all the talking Gekko’s to man the storefronts?

    • September 12, 2013 at 5:55 pm
      Wait, Mikey says:
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      Shouldn’t that be “Lizard” those storfronts?

  • September 10, 2013 at 2:37 pm
    jp77 says:
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    Does anyone remember that G>E>I>C>O is the former “government employees insurance company..?? a failed company bailed out then
    purchased by Mr. Buffet for pennies…??

    • September 10, 2013 at 3:12 pm
      SWFL Agent says:
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      Yes, America’s first bailout. But consumers don’t care.

      • September 10, 2013 at 3:24 pm
        Renoscs says:
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        The government didn’t bail out GEICO!! Berkshire did.

        • September 16, 2013 at 10:35 am
          bill says:
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          don’t try to explain minor details like that to SWFL. this is the same person that types words they way they pronounce them (see: expecially).

    • September 10, 2013 at 3:22 pm
      Renoscs says:
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      YES!! I believe this was back in 1975. Correct?

      • September 10, 2013 at 5:13 pm
        Paul says:
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        Yes, GEICO was in deep doo doo. I don’t believe it was the Gov who bailed them out, but another insurer. Metlife comes to mind, but I may be wrong. 1975 – ’80 was around the time period. Back then, only the biggest tightwad would fill out the card inserted in the Sunday paper, and lesser people went to Allstate too. GEICO built itself by lowballing teen drivers and then keeping rates high to recover the money “advanced” in the early years. those teen driver remained loyal, but they still don’t understand they have the “McDonald’s” of insurance. Fast, cheap, crap.

  • September 10, 2013 at 3:36 pm
    gekko crusher says:
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    Online insurance is not the best 60% return to an agent because they want the service and buying online can screw you over. I bout from the green monster switched from an agent I told them what coverage’s they had they told me I had the same coverages then I get the papers they bumped my deductible to 2,500 for collision I had a 1,000 then they put no comprehensive coverage bank forced insurance on be because the deductible was to high in the mean time I hit a deer the monster would not pay for it I had to take it to the insurance commissioners office they made them pull the phone calls and yep they lied just to get my business Hours and money spent the monster loss and frankly I hope they kick them our of the state they did with Esurance in our state I think online insurance only should be illegal and to many people buy it thinking they are covered and don’t understand insurance and pay for something they don’t have

    • September 18, 2013 at 4:50 pm
      Blondie2 says:
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      Say again?
      But with more than two sentences.

  • September 10, 2013 at 8:53 pm
    Gregory says:
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    Independent agency companies bailed out Geico

  • September 11, 2013 at 9:16 am
    lonestar says:
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    There is a large segment of the population that want cheap only. They have been duped into believing the commercials that Geico is the cheapest. These type of people tend to think they know more about insurance than an agent that has been in the business 10 years. Buyer beware. In my experience as an indepedent agent, I am rarely unable to beat a Geico policy rate. And, the client gets an agent with my policy, instead of a call center employee…

  • September 11, 2013 at 4:00 pm
    WyomingAgent says:
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    As a friend of mine from the claims side would tell Geico clients when they found out they didn’t have a particular coverage, “There’s your 15% savings.”

  • September 11, 2013 at 5:14 pm
    Art Williams says:
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    When Allstate adopted McKinsey & Company recommendations in the mid 90′s, the culture changed to that of finding reasons to deny claims. I was a long-term employee at the time and thought it was disgraceful then-it has gotten worse as verified with discussions with employees and neighbors who put in claims and evidenced by the loss of policyholders. After their handling of my recent Sandy claim which was an exercise in bad-faith”, I cancelled all 4 of my policies in favor of GEICO!

  • September 13, 2013 at 12:18 pm
    lonestar says:
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    Art, from my experience with clients I write away from GEICO, they don’t sound any better at claim time than Allstate. “There’s your 15% savings…”

  • September 16, 2013 at 12:36 pm
    Arthur Paras says:
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    In the 60s GEICO gave the store away with ridiculous low auto rates.Wrote car Ins on anybody. Loss ratio caught up to them,In New York State their Insurance Commisioner Rescinded their LIcense due to Insolvency.The other Auto Carriers were stuck with paying off GEICO CLaims off claims Lets see if History repeat. Allstate is last one to extgend advise to anybody. Ask Retired Agents what happed to their supposidly Retiree Health and LIfe Ins Benefits both were either terminated or will be shortly(Retired Allstate Agent 35 yrs #611116) Recipient of Promises unkept

  • September 16, 2013 at 12:40 pm
    Arthur Paras says:
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    Allstate is last one to give advise to Geico.Just ask retired Allsate Agens what happeded to their supposidly promised Health and LIfe INs.Benefits PS these are the dedicated Agents from the 60s who built this company.



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