Allstate Hammering Clients Again - Agents Too

[RicFlairII]

^ Can you elaborate further? This is the FIRST I've heard that. Is the source you heard this from accurate, or just speculating?

What specifically?

 

[shawnmwalker]

Read the transcript form the Q2 results....

 

[Heather]

I received a resume a few days ago from an allstate girl. Said her agency she works for is in financial trouble, she cannot make quota and the owner can't pay the bills. From the outside you see a big fancy office, been there a few years now, fancy cars parked outside looks prosperous. I have not even called her yet, pretty sure I can't pay her what she was making.

 

[Matt37]

I keep hearing this, but no specifics, please elaborate.

AUTO! that is what is going on.

I have been an advisor for a few larger carriers for a few years now and my message to them is simple.

Property and auto will make you NOTHING... let casualty business drive your book.

 

[insurance1822]

This confuses me. How is casualty different then property/auto? There's casualty components built into property/auto policies aren't there?

 

[Matt37]

This confuses me. How is casualty different then property/auto? There's casualty components built into property/auto policies aren't there?

Well.. I am focusing more on commercial lines.

But for instance.. I aided a carrier in developing a gun shop and gun range program 3 years ago (I wont mention what carrier) and advised it could be an absolute gold mine .. IF you write it on a GL only basis and be EXTREMELY picky on the property and auto.

carve out the casualty lines.

Obviously the key to this is you have to write classes that are somewhat tougher to place based on stereotypes but if underwritten properly are profit monsters.


Auto and Property are complete losers in this marketplace right now.. Carriers are killing each other for it.. it is to cheap!!

 

[insurance1822]

I'm going to PM you as I have a few gun shops I've been stuck on../