This is terrible. For all of these massive publicly traded insurers it is a race to the bottom. Everyone wants to trim expenses to accentuate net income for shareholders. What ever happened to expertise and a consultative approach in personal lines? Personal Lines agents have been reduced to essentially trading in commodities (even though insurance is not, and has never been a commodity). I left the PL space on the carrier side about five years ago and it was the best career decision I ever made. I truly feel bad for anyone working carrier side in PL…. My understanding was that Allstate want to switch to an independent agent distribution model, but it appears that they are likely pivoting to a “call center” model based on Progressive and Geico.
Can any former or current Allstate agents speak to this? Unfortunately Farmers, Allstate and Nationwide are constantly spinning bad news into “good news”–but it always impacts the agent in a negative manner.
Augustine- Former Allstate auto bodily injury adjuster for 5 years. ALL they cared about in my time there was the numbers-stock price. They didn’t care about the insured or the claimant in the accident. It was about how little they could pay on the claim. The fat cats at the top are making hundreds of millions. Good hands my ASS.
I was an Agent there for 3 years and would never work for Allstate again. All day you had to explain why someone’s rate goes up every 6 months and the Agency Owners are all about the numbers that Corporate squeezes them with. Boo on Allstate.
This is the very definition of “virtue signaling.” Take a moral or ethical stance intended to position yourself as virtuous with no intention of following through…
In related news, Allstate has increased their advertising budget two fold, continuing to promote the “good hands people”, while actually whittling away at the number of “good hands people” available.
Translation to the article, devoid of Corp Speak: We are cutting staff, which means that we are cutting office space expense, and divesting ourselves of any expense related, non-revenue generating assets. For those willing to wait on the 800 number, or navigate our abyss of a website, we sincerely hope that you continue to buy your insurance from us.
I’m a personal lines, carrier side veteran of 30+ years. The stock carriers I’ve worked for all tout that the customer is #1, but their actions clearly show that it’s the shareholder who is #1. It’s all about maximizing stock price, valuation. That’s the primary consideration in their actions.
Allstate Translation:
“We are going to compete directly against our own agents, and we will pay them less for more wok. Oh by the way, you agents still have a life quota, or you are out the door. But don’t worry, you are in Good Hands.”
I am an independent agent with access to both Allstate and National General. If Allstate follows through with rolling the IA Allstate business over to National General, it will be a disaster. Nat Gen has no idea what they are doing, and I am already having to roll my entire NAT GEN book as we speak due to unrelenting increases. If I as an IA can no longer quote and sell a product that is an pure Allstate branded product, I will say goodbye to trying to sell for them. If they are smart, they WILL NOT roll the Allstate IA book of business into NAT GEN….
“con men’ as they used to call them in the 70’s, at the top of so many insurance organizations; and they wonder why young people shy away from insurance careers
They constantly have to re-invent themselves because they live for the quarter, they never seem to have had true long term planning. It’s perhaps the most overmanaged and most poorly managed larger P&C carrier in the industry, There management seems to have never cared for or have been good to their agents. Things like this can cause friction and a lot of other issues that will hurt their bottom line. They made poor decisions by buying companies like Esurance, which has drained a lot of money from Allstate. If they don’t have respect out there, they have nobody to blame but themselves.
I worked for Allstate 36 years and they pushed me out when I turned 55. It was announced by a sales leader in a FSL meeting that they hired in a girl to get rid of me! The the TSL was right – this manager harassed me like I have never seen told me if I didn’t take a $10,000 pay cut and take on more tasks I would be put on job in jeopardy status – my reviews had all been STELLAR – I was a FIVE TIME Chairman award winner! They gave me a job to do with NO a training – a job that had no connection or related in anyway to anything i was doing! The hits just kept on a coming so I retired!
Feel your pain. Was a 38 yr employee, retired in 2014. Worked every type of claims the company insures. In 2012, salaries were frozen, they dropped the qualified pension plan and went with a cash balance one that had a 50% less company contribution. Then they readjusted claim adjuster position values downward putting a cap on what one could earn. Our state VP, who was a great boss, retired then the new one only cared more about numbers than employees. Things got so untenable that myself and two other 35 year employees in the same claim office decided to retire within a month on each other. After I left, saw a number of folks still working there said I got out at the right time as things were getting worse.
Allstate no longer puts their customer first. It’s all about the stockholder. Huge conflict of interest pressure placed on their claims adjusters over claims severities. They had their employees sign a document in 2020 that they could not sue Allstate. They took two weeks pay from their employees in 2020, and capped PTO at a level it used to be at 5 years experience. Its no longer a good company to work for or be insured with. They have been investigated by the FBI before for racketeering, it’s looks like it is just around the corner again.
This is terrible. For all of these massive publicly traded insurers it is a race to the bottom. Everyone wants to trim expenses to accentuate net income for shareholders. What ever happened to expertise and a consultative approach in personal lines? Personal Lines agents have been reduced to essentially trading in commodities (even though insurance is not, and has never been a commodity). I left the PL space on the carrier side about five years ago and it was the best career decision I ever made. I truly feel bad for anyone working carrier side in PL…. My understanding was that Allstate want to switch to an independent agent distribution model, but it appears that they are likely pivoting to a “call center” model based on Progressive and Geico.
Can any former or current Allstate agents speak to this? Unfortunately Farmers, Allstate and Nationwide are constantly spinning bad news into “good news”–but it always impacts the agent in a negative manner.
If I remember the story correctly, the then CEO of Farmers told the Zurich board that the average agent was ‘useful to them’ for about 7 years.
Mere chattel.
Yet they teach the new agents to tell prospects, ‘that I will review your insurance annually.’
Augustine- Former Allstate auto bodily injury adjuster for 5 years. ALL they cared about in my time there was the numbers-stock price. They didn’t care about the insured or the claimant in the accident. It was about how little they could pay on the claim. The fat cats at the top are making hundreds of millions. Good hands my ASS.
We are cutting staff to grow? Doesn’t pass the smell test. Augustine is right, it is only designed to grow the Wall Street value.
You’re in good hands.
Unless you’re getting the boot.
Not current agent any longer. I left Allstate as agent in 2015…terrible experience.
I was an Agent there for 3 years and would never work for Allstate again. All day you had to explain why someone’s rate goes up every 6 months and the Agency Owners are all about the numbers that Corporate squeezes them with. Boo on Allstate.
You have to cut the people to grow the people. Strange headline by whoever wrote this.
Almost one year ago here was the headline from the company’s CEO….
https://www.allstatenewsroom.com/news/allstates-ceo-calls-on-u-s-businesses-to-create-better-jobs/
You really can’t make this stuff up
This is the very definition of “virtue signaling.” Take a moral or ethical stance intended to position yourself as virtuous with no intention of following through…
Well, other businesses need to create jobs if they are cutting them! SMH
In related news, Allstate has increased their advertising budget two fold, continuing to promote the “good hands people”, while actually whittling away at the number of “good hands people” available.
Translation to the article, devoid of Corp Speak: We are cutting staff, which means that we are cutting office space expense, and divesting ourselves of any expense related, non-revenue generating assets. For those willing to wait on the 800 number, or navigate our abyss of a website, we sincerely hope that you continue to buy your insurance from us.
ARE YOU IN GOOD HANDS?
I wonder if Dennis Haysbert is getting a pay cut? I wonder if Allstate has cut Mayhem (like me) from the payroll?
I’m a personal lines, carrier side veteran of 30+ years. The stock carriers I’ve worked for all tout that the customer is #1, but their actions clearly show that it’s the shareholder who is #1. It’s all about maximizing stock price, valuation. That’s the primary consideration in their actions.
Allstate Translation:
“We are going to compete directly against our own agents, and we will pay them less for more wok. Oh by the way, you agents still have a life quota, or you are out the door. But don’t worry, you are in Good Hands.”
I am an independent agent with access to both Allstate and National General. If Allstate follows through with rolling the IA Allstate business over to National General, it will be a disaster. Nat Gen has no idea what they are doing, and I am already having to roll my entire NAT GEN book as we speak due to unrelenting increases. If I as an IA can no longer quote and sell a product that is an pure Allstate branded product, I will say goodbye to trying to sell for them. If they are smart, they WILL NOT roll the Allstate IA book of business into NAT GEN….
“con men’ as they used to call them in the 70’s, at the top of so many insurance organizations; and they wonder why young people shy away from insurance careers
They constantly have to re-invent themselves because they live for the quarter, they never seem to have had true long term planning. It’s perhaps the most overmanaged and most poorly managed larger P&C carrier in the industry, There management seems to have never cared for or have been good to their agents. Things like this can cause friction and a lot of other issues that will hurt their bottom line. They made poor decisions by buying companies like Esurance, which has drained a lot of money from Allstate. If they don’t have respect out there, they have nobody to blame but themselves.
Stockholders love a good RIF!
Getting rid of people so they can spend more money on advertising.
Who thinks this is good for Americans?
Your in good hands, but sometimes you only get the finger.
I worked for Allstate 36 years and they pushed me out when I turned 55. It was announced by a sales leader in a FSL meeting that they hired in a girl to get rid of me! The the TSL was right – this manager harassed me like I have never seen told me if I didn’t take a $10,000 pay cut and take on more tasks I would be put on job in jeopardy status – my reviews had all been STELLAR – I was a FIVE TIME Chairman award winner! They gave me a job to do with NO a training – a job that had no connection or related in anyway to anything i was doing! The hits just kept on a coming so I retired!
Feel your pain. Was a 38 yr employee, retired in 2014. Worked every type of claims the company insures. In 2012, salaries were frozen, they dropped the qualified pension plan and went with a cash balance one that had a 50% less company contribution. Then they readjusted claim adjuster position values downward putting a cap on what one could earn. Our state VP, who was a great boss, retired then the new one only cared more about numbers than employees. Things got so untenable that myself and two other 35 year employees in the same claim office decided to retire within a month on each other. After I left, saw a number of folks still working there said I got out at the right time as things were getting worse.
Allstate no longer puts their customer first. It’s all about the stockholder. Huge conflict of interest pressure placed on their claims adjusters over claims severities. They had their employees sign a document in 2020 that they could not sue Allstate. They took two weeks pay from their employees in 2020, and capped PTO at a level it used to be at 5 years experience. Its no longer a good company to work for or be insured with. They have been investigated by the FBI before for racketeering, it’s looks like it is just around the corner again.