Opinions About Allstate Exclusive Agent?

[FloridaFinancial]

I saw an ad about becoming an Allstate exclusive agent and wondered what the "downside" is? I am interested in starting a PC agency and I am new to PC business. any comments?
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actually just did another search of the forum.....WOW.....I think Im going to go ahead and SCRATCH the Allstate idea.....

 

[VolAgent]

FWIW, I'm not with Allstate nor have I looked too far into the opportunity. This is just what I've gathered from here and talking to Allstate agents.

You get all the downside of owning a business and all the upside of being an employee. You put up your money for the lease, build-out, equipment, staff, and marketing and Allstate owns the book of business. You are held captive to Allstate and their products, which is some locales may make you uncompetitive.

I understand you can still sell your book to an Allstate approved candidate, but that does severely restrict the pool of buyers and thus lower the price. Also, I have been told by one agent, they will fine him if his office isn't open by 9 am. They will actually drive by periodically to check this.

I think Allstate is a great name, and they certainly do a lot to make sure your potential clients know about them, but is what you get worth what you pay? Perhaps the only advantage of Allstate over State Farm is that they will let you own multiple offices, while it appears State Farm is strictly one office per agent. Also, I believe Allstate will accept more types of risks that State Farm, letting you write more business. That said, there is a great thread on here talking about how awful the State Farm opportunity has become.

 

[avaloninsurance]

I have worked for an Allstate agent for 5 years (4 years in the 90's and 1 year within the last 2 years). I have also been on the independent side of the business for over 10 years. I agree with the comments made above. As an agent you are treated more like an "employee" of Allstate than an agency owner. They have VERY strict requirements and expectations on how much and what they want you to write for new business and if you don't make their quotas we'll say that they can make life rather unpleasant for you. If you like micromanagement, well defined goals, constant supervision and "guidance" from your regional manager, and the benefit of nationwide commercials offering products and discounts that may not be available in your area/agency (causing you needless calls from clients wondering why they don't get the benefit offered on t.v) then this might be a good fit for you. I'm sorry if I sound bitter. When I first started working with an Allstate agent years ago it was a good company. Over the years however, I think corporate has gotten greedy and made it very difficult for new agents to succeed. Honestly I would recommend going independent. Anything that you write is good. Some companies have requirements for new business production, however it is usually based on counts and not type of policy. Lot less stress and usually better markets, pricing and voerage options.
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You know in my last post I really did not address the financial impact for an Allstate Agent. As noted in the prior response you will be responsible to pay for any staff and their benefits, computers, utilities, and office supplies. I believe that Allstate does give a little money towards these things however the amount that they give you I believe depends on your production and meeting their goals. As far as commission 10% auto and 7% home for the non-allstate home companies in FL (Normally you would get 10% but Allstate has to take their 3% of the commision just for offering you the ability to write with another home insurance company). Not to mention that any commercial policies that you write that aren't on Allstate paper they will also take a cut from you. On the independent side you normally get between 10 -15% commission on homes and 10%-17% on auto. Granted if you go independent you will not get any help with expenses and you will be on your own to get signed up with companies or go through a GM, however you are not held captive to a corporate standard or minimum. Sorry if I have come accross as very bitter or non-Allstate, but I just hate to see someone roped in to a situation where they are told how great something is but not informed of the down side. Allstate works great for some people. I think it probably works better for those outside of FL (since they are able to write everything under the Allstate name and not have to farm out home or commercial to other brokers) or those who started their agency 15-20 years ago with Allstate. I would not recommend it to someone starting in the business today. Good luck to you whatever you decide!!

 

[insurance1822]

I will address this in detail later today

 

[workingsmart]

I have owned an Allstate Agency before. I learned a lot. However, I got tired up being told what to do and when to do it. You are truly captive and cant go out of their box. That is good for some people. But I hated it.

Plus Allstate is always looking out for their own self interest and not yours. But do what is best for you.

 

[insurance1822]

Do not even consider an Allstate agency in Florida - DO NOT EVEN CONSIDER, trust me

 

[VolAgent]

Do not even consider an Allstate agency in Florida - DO NOT EVEN CONSIDER, trust me

I would take that a step further. Don't look at any captive P&C company where it is pulling out of the homeowner's market.

 

[Guest]

I saw an ad about becoming an Allstate exclusive agent and wondered what the "downside" is? I am interested in starting a PC agency and I am new to PC business. any comments?
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actually just did another search of the forum.....WOW.....I think Im going to go ahead and SCRATCH the Allstate idea.....

I was an Allstate agent for 5 1/2 years in LA back in the 70's and I know there have been lots of changes since then. All I can say is that it's a great company but you better write lots of life insurance if you want to make your DM's happy and keep your job. You ARE really an employee at the mercy of your bosses and everything you write or renew belongs to Allstate....luck!

 

[FloridaFinancial]

Thank you all!
I looked into it a little further and talked to more people. I am going to broker some deals until I can get appointed and just stay independent. Thank you for the comments and opinions!

FF

 

[VetteBlue]

I'm visiting with the Allstate "manager" this week about an EA "career." Allstate as a major insurance company seems to be underserved in my market. State Farm, Erie, and Nationwide dominate with 3-6 offices each in my county. Then there are about 3-4 independents who have been here forever. Allstate has one established agent locally, which doesn't appear to be actively staffed by the agent.

When I priced my own auto insurance, their rates are very competitive and lower than my current Erie policy.

Looks like there may be a good opportunity. I recognize that there will be a few lean years of building the business.

Looking for more feedback on the Allstate Exclusive Agent career.