Why Are There So Many Allstate Agencies for Sale Now?

[TeePee]

This is, of course, a myopic post from somebody who has never worked in the "agency model" and who can't see past their cubicle wall.

I have been an agency owner for over 20 years. I founded that team that went down to the Charlotte call center years ago to fix it when the stockholders forced Allstate to go to a 1.800 and internet format before it was ready. After 10 years of competing with the agency model that built the company, they reversed themselves and went back to what works. The call center format was a failure. Long hold times, inexperienced reps, poor management, but mostly a general lack of accountability for really bad customer service in an inbound call format caused the failure and reversion to a sales and service element for the local agents.

Your comment that the call center is handling "service calls" illustrates your lack of understanding of the sales process in the industry. We sell service. An insurance contract is the beginning of a relationship that requires ongoing service from the agency, whether it is a call center or a local agency. Otherwise the contract is just a piece of paper.

Most of the new policies that come into my agency from one of the call centers are written wrong, or the client has been given bad advice. We're used to fixing them, we've been doing if for years.

Since the original post in this thread was about owning an agency, and you have no experience with this, you are not qualified to offer advice. Since you work in a call center though, I understand your willingness to offer advice without knowledge or insight. As usual, your work has to be fixed by an agent.

BTW, out here in the professional agency owner world we stress accountability, so we sign our name to our work.

Jeff Bennett

I work *locally* to you Jeff and have been with Allstate for 19 yrs as the office manager of a fairly large BOB considering our town. I have worked for 2 agents in the same book. We purchased a BOB last year and now have 2 locations as well as absorbing another BOB this year into our main (my office). I can glance at a policy and tell if it was written through one of our agencies or through the CIC. HORRIBLE!!!!

However I love my job, love my customers (most anyway), and take too much personally . My parents have been with Allstate since 1971 so I know nothing but Allstate. I still laugh when we had a producer quit last year to go back to SF and her last comment was she was tired of *hand feeding* 99% of our customers and could really care less about them.

 

[agentinsure]

that's too bad to hear such negative comments abut Allstate's call centers, mostly true I'm sure. As a past customer of Progressive and Geico, and having referred many customers (I don't write personal lines anymore) I can only say they do an outstanding job

 

[PhilL]

I talk to many agents each week, both captives and independents. While most independents are feeling the competitive squeezes from the mega-agencies, commission shaving and many other forms of competition around them, the captives often express frustration with customer service complaints and constant production pressures flowing down to them from the hierarchy.

 

[Brian Anderson]

Lincoln Benefit Life employees were not in good hands when Allstate Life decided to sell that healthy subsidiary to liquidator Resolution Life Holdings last July (sale closed April 1). The sale included LBL's life insurance business generated through independent agencies and its deferred fixed annuity and LTC businesses. Talked to some bewildered LBL folks last July.

 

[RicFlairII]

Allstate has turned into a life insurance company...Every agent must produce their life quota or they will be pressured that their 'relationship' may be terminated. Be careful what they say, and watch what they do. I sold last year and it was the best thing I ever did...No regrets!

I agree with this guy.

I was with Allstate for over 20 years and recently sold my agency. It
had turned into a situation where they seemed to only want Life products
sold (IMO).

I was lucky, I sold quite a bit of life at times, but it got old fast.

As far as so many agencies for sale, again IMO, it is because there are
not many prospects for growth and rates are uncompetitive. Allstate
completely controls the sales of agencies, and there has been a recent
Allstate mindset change/ course reversal where they are approving more
sales of agencies to other agents.

Agents like myself who have thought about selling had to jump on it
before the company changes their mind.

 

[The Colonel]

CJ-missed you at the State Farm stockholders meeting 2 years ago!

 

[GXR2]

"...The corporate model changes and you go from appreciated to tolerated.. grudgingly..."

"...work for people who think you're shi te... just doesn't make you want to fight that battle much longer. ..."

"...kinda hard to continue to fight for a team that really doesn't want you." ...

Wow isn't that the truth in the industry as a whole. If you're not the agency owner or upper management you're looked at as a mule.

 

[Questlot]

Most companies have laid off employees due to the pandemic and the ensuing economic chaos, this is not the case for Allstate. The reasons for all state agencies for sale is a result of a broader strategic plan to shift focus to a direct sales model that minimizes cost and maximizes revenue.

 

[fed up]

Most companies have laid off employees due to the pandemic and the ensuing economic chaos, this is not the case for Allstate. The reasons for all state agencies for sale is a result of a broader strategic plan to shift focus to a direct sales model that minimizes cost and maximizes revenue.

Allstate set a number for layoffs around 3500 due to "Transformative Growth" just as the pandemic started. That number blossomed into 9000 who were laid off, retired, discharged, or quit during that layoff period. The HQ is a mess as Allstate transitions to "zones" instead of "regions" meanwhile 800Allstate is competing with the Exclusive Agents for the same business by offering better rates than the agent has available while lowering the commission structure.