Allstate to Reduce Comp 20% and Jettison Small Agencies

[Bertolinoins]

Gotcha, I thought you were talking about something that was Allstate specific as opposed to the boredom that overcomes all entrepreneurs at one point or another. Happens to Indys too but they just hire a good manager and move on to other ventures while keeping their toe in the business and collecting big checks.

 

[xrac]

From all of the Allstate agents I have spoken with no one is happy about what is going on.

 

[Newby]

I've heard they were in good hands.

 

[Josh]

I've always thought that the life production requirement for a P&C agency was odd, but all they are really saying is that you need to sell life insurance too. Frankly, the commissions on life insurance are generous enough that if you did it right you could set up an agent to do life insurance only with a pretty attractive compensation plan and keep mother Allstate happy.

Again, I don't disagree with you about it being foolish for Allstate to even have a life requirement for P&C agents, but what they're looking for isn't that crazy.

What state are you in?

 

[Guest]

When I was at Farmers, they told us that only 3% of term life ever pays out, so it is obviously a HUGE profit center.....

People keep it for years, and stop paying, How many policies should have paid out but didnt?

 

[Sales71]

RBA that's why term ins is very cheap. Usally it would pay but most of the time it lapses or run out.

 

[CaptiveGuy]

Allstate Agency Compensation Shifts to Award Best Performers | PropertyCasualty360

 

[Sales71]

I think you have to be into broker mood with Allstate.
They have more broker companies than there own products. It's hard for the current agents to accept that concept. Not only you are not set up like a broker, you have to service those policies. There agency management system does not support the broker business.

 

[VolAgent]

Apparently no one is in a rush to try out the new comp.

"The chief executive says he misspoke when he told an analyst earlier in the call that agencies had the option to opt in to the new compensation structure in July 2012. That option has been eliminated, he says, due to lack of interest."

If its so good, you'd think the big agencies would rush for it. Also, I don't see how this benefits anyway. Comp is still 10.7%, the different is that now 2.7% of it is bonuses versus 0.7% currently. Seems like a lose, now you have to struggle to make bonus.

 

[Sales71]

It's funny when I read Volagent post I think he works for allstate as an agent. But I know you do not, I am very impressed by your knowledge well rounded person who know about the insurance industry as a whole not only one area... Kudos buddy