Allstate Says Q2 Results Reflect Strategy Momentum

July 31, 2019

  • July 31, 2019 at 1:16 pm
    Bond says:
    Like or Dislike:
    Thumb up 7
    Thumb down 0

    In the mean time Farmer’s numbers continue to decline, and their “agent on every corner” strategy is not working. Now they want to purge all those agents who do not meet their standards for PIF and production models, nice. Allstate figured it out, to bad Farmers can’t!

  • July 31, 2019 at 11:06 pm
    knowall says:
    Like or Dislike:
    Thumb up 1
    Thumb down 2

    But when you read the premiums written listings in the insurance journal magazine both Allstate and Farmers appear to be growing. Do independents write for Farmers?

    • August 1, 2019 at 12:49 pm
      Guy says:
      Like or Dislike:
      Thumb up 3
      Thumb down 0

      Farmers has a nasty habit of allowing people with little training(and less capital, like $8k in the bank) to open an “agency on every corner” while giving them unobtainable goals for people new to the industry. Then keeping that agent’s entire book of business before terminating their contract. So Farmers is working off of a now archaic model of sacrificing its agents to try and post profits, while still being the lowest commission paying insurer out there(4.5% iirc). Getting lower nearly every year at that, promising massive year end bonuses that would require years of experience in life sales and securities prospecting to obtain.

      Nothing is more embarrassing than watching what was once a respected name in insurance turn to the business model of an MLM company. Hence why Farmers appears to be growing, but it is not sustainable, as there are only so many rubes in the world willing to serve their friends and families on a silver platter for quarterly profits.

      • August 1, 2019 at 2:34 pm
        okt0ber says:
        Like or Dislike:
        Thumb up 2
        Thumb down 1

        When was Farmers ever respected outside of California? I’ve been at this for 20 years in Texas and Farmers has always been an uncompetitive joke to us. The confirmation was causing the mold crises by botching a homeowners claim so bad it caused years of unprofitability in the Texas homeowner market. And then they sent a non-renewal notice to their entire Texas homeowner book, only to say “oh nevermind” a few months later.

  • August 1, 2019 at 8:07 pm
    haha says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    This was all before Allstate dropped a bomb on its agency force today. They are essentially going to drop the commission by 2% and force agents to use a disastrous internal customer service program. So, If you have a 5M agency, their customer service, which will only handle at most 70% of service, will cost an agency $100,000 a year. Mind blowing. I suspect once the analysts hear about the extremely low agency morale and how everyone is ready to riot, things will change and the stock will plummet.

    • September 16, 2019 at 7:28 pm
      FuriousAllstateAgent says:
      Like or Dislike:
      Thumb up 0
      Thumb down 0

      You’re kidding if you think their service center can handle 70% of the service calls. Our agency continues to grow because we take care of customers. We tried using Allstate’s program to handle our calls for an hour a day to “get ahead” but after 60 days, we dropped the program because the service was so awful. Most of the calls were either handled improperly, or it was sent back to the agency to complete.

  • August 1, 2019 at 8:12 pm
    just wait says:
    Like or Dislike:
    Thumb up 1
    Thumb down 0

    These results were before the company dropped a bomb on the agents today. They essentially will cut commission by 20% and force them to join an internal customer service program that costs 2% of premium. This will bankrupt some agencies while others will look for new work. They will at most, handle 65% of service, while charging an exorbitant about, fleecing the agents and sucking them dry. If one has a 5M agency, the service will cost $100K a year, yep, all for customer service. Once analysts get win of the lowest morale of all time, I suspect the stock will plummet. This is how the company takes care of their agents, it’s all about the dollar baby!

    • September 6, 2019 at 8:50 am
      Reality Bites says:
      Like or Dislike:
      Thumb up 0
      Thumb down 0

      In top of cutting agents fees, increasing premiums some by more than 65% without any explanation makes them money in short term, but in the long term, it’s going to bite them in the back & they are going to loose big time.



Add a Comment

Your email address will not be published. Required fields are marked *

*