allstate office in upstate ny

[gms585]

Hello all,

First let me say sorry for any typos I'm posting from my cell.
I'm a 27 year old p/c life/health agent in upstate ny. I've been in agencys selling and servicing policys for about 7 years. I've been at local geico offices, allstates, and brokers. Recently I've been offered a fairly good deal on a 2mil book in upstate ny with allstate. There are some issues with the book and the office location is so so gor the area. My concern is last time I was at allstate they were clearly in decline both in agent treatment and retention as well as customer satisfaction. I'm looking for others thoughts on allstate as a whole and in ny. I have a feeling I may be looking at a lemon even with solid book size.

[lonestar]

gms, you are wise to 2nd guess this "opportunity". I don't know about selling Allstate insurance in NY, as my 14 years of exerience is based in selling insurance in Texas: 11 years on the captive side and 3+ years on the independent side. But I am sure some of the logic applies in both states. There are some folks out there buying Allstate agencies, and I am sure some of these folks will find a way to make it work for a while. But my skepicism is overwhelmed when I see so many Allstate agencies for sale. If it were such a "great" opportunity, logic would tell you that Allstate agents would never sell. They would keep running their agencies until they passed away of old age. Your experience working for a captive agency will tell you what to expect if you buy the Allstate agency. If you read any respected publications, they all point to the fact that the days of the captive are not going to get any better. From my own personal experience as a captive agent prior to me going IA, I am convinced this trend will not change, and will only get worse.(Allstate knows this as well if you look at their actions: They purchased Esurance and Answer Financial(an independent platform) recently, and they also own Encompass which is sold throught the IA channel. If you have the chance to buy an independent agency, that will allow you to compete in the 21st Century. Customers these days, by large are demanding more than "one brand of detergent" when they go shopping. If you buy the Allstate book, be prepared to be beat down with threats of commission cuts if you don't make certain numbers in life and securities production. Selling your soul to a captive company is like being an employee without any of the benefits. Doesn't mean you can't make it work, but be prepared to work ten times as hard while all the while being harrassed by your manager to write more life versus truly owning your own business as an Independent agent.

[d's insurance store]

The Allstate environment at the present time is rather bizarre with success or failure heavily dependent on your rates in the immediate brick and mortar footprint area. Add to that the adversarial relationship between Allstate owner and the company that is fairly well acknowledged in insurance circles.

Do a web search for All Blue Blog, a paid site where agents moan and bellyache about current conditions. Spend the $30 to experience what current agents feel. Then seek out NAPAA, an association of Allstate agency owners for even more enlightenment. If after viewing those two sites you still feel optimistic about your success as an Allstate agency owner, then by all means, plunk down your hard earned investment dollars, drink the Kool-Aid and enjoy the ride. Keep up your health insurance premiums and be sure your policy has a mental health benefit. You're going to need both.

[maryh]

Hi GMS.....if you decide to go forward with the purchase of this agency please feel free to contact me as we can assist you in the purchase of the agency. We've got access to a stable of 10 lenders ready to go now.

Please feel free to email me at mary.holeman@expresspremium.com

[yoyowordup]

Go to AgencyEquity.com and look at the list of agencies for sale throughout the US. There is a reason that 80% of the listed agencies are Allstate.

[lonestar]

yoyo makes a valid point that is screaming attention: If the Allstate agency is 1/3 of the good deal that it is presented, then you would never see one for sale.

[indagentbh]

Hi, GMS. I used to work for Allstate in the upstate NY area (Rochester) and was offered the same deal. I ended up turning it down because after all I would have put into it, it didn't seem worth it . Kept track of stats while I was there and there were some issues I had with that. Out of all the "yes" answers I got (people who liked prices and were ready to buy) Allstate declined about 80% of them. We can argue pre-qual methods, but I was the #1 producer there and it was tiring to put it mildly. Being confined to just one product line was daunting for me. Commissions are generally higher as a captive agent, but you make more of them as an independent. If you really want to own your own location or run things for yourself, I'd be happy to let you know what I have done. The problems, the rewards and the things to look out for. I didn't like being poached by other Allstate agents trying to steal my clients, now I get the ones they lose when rates are too high.

[michelle1234]

Hi I saw your reply about working for allstate . I am about to purchase a book of business but I have my doubts about what the Reuters are telling everyday. I really want to work independently but can't get any independent companies to work with me cause no experience . I've been a mortgage broker for 15 years and I used to freedom. So captive would be hard for me to begin with. any thoughts or ideas are greatly appreciated. I do believe in workino smart not hard!

[agent14]

michelle, let me first say that from what I know from my mortgage friends, there is a LOT MORE MONEY in being a loan officer than selling insurance. Having said that, if you can find a way to survive the first 5 years, and that is a BIG "IF", then you might be able to eek out a living as an P & C agent, but if you are like 90% of new agents, you will not get rich anytime soon, if at all. I was with a top 3 National Captive company for 11 years prior to going independent in late 2010. So I can tell you about my experience from both sides of the fence.

Captive agency Pros / Cons:
Pros: They will hold your hand and provide you with some level of training. In most cases, they are willing to hire anyone with a pulse.(There is a reason there are so many Allstate agencies for sale. Think about it. If this was such a great GIG, no one would ever sell.)

Cons:
1. You DO NOT own your book of business. So, if you find out you do not like selling for a captive company 3 years down the road, all the family, friends and all the rest of the business you wrote, you cannot take them with you. They are owned by Allstate.
2. You are limited to offering only "one brand of detergent" so to speak. If Allstate is not competitive in your area, you are screwed. And you have no control over this.

Independent Agency:
Pros:
1. The agent actually OWNS the policies. Commissions are generally higher than on the captive side. You have multiple companies / rates to choose from. Therefore your closing ratio will be about 3-4 times higher than that of the captives. (Working smarter, not harder)

Cons:
1. The IA companies are looking much closer at agency retention these days, and there are some instances where they will terminate a code if the retention or profit / loss of the book is not trending favorably.

I think you would be better off, if you cannot obtain the IA contract appointments, to approach an IA as a producer, and work out some sort of arrangement / plan that you produce and obtain some sort of ownership so that after 5 years or so, you have the option of buying the policies from the agency owner. You will certainly make more money doing this than trying to start up a new Allstate agency. If you buy an existing book of business, you will be micro managed out the Wazzoo by your Allstate manager to sell financial products and life insurance.

[tflood]

if you want to jump into the commodity game, go for it.
Remember, "if you want it bad, you usually get it bad"
Just sayn

[d's insurance store]

I can't stress enough that if you're on track to purchase or start an agency in the current Allstate environment that before you sign and finalize ANYTHING, that you check out allblueblog.com and napaausa.org and ask any and all questions regarding the relationship between Allstate and it's agency force.

Do NOT believe anything the recruiting person is telling you as they are highly compensated when they get someone to sign on. Take a day trip about 50 miles from where you're going to be working and sit down with existing Allstate agency owners who can give you their perspective about the company/agent relationship without feeling threatened by you as a competitor.

Enter into this relationship without doing the proper preparation at your own risk. Keep in mind the saying 'Abandon hope all ye who enter here'.