Why Are There So Many Allstate Agencies for Sale Now?

[JessicaP]

I just received a call from Allstate today asking if I would be interested in owning a Allstate business. What the person told me today is that you can buy "booked business" to start so you have business right from the start. In addition, I am not currently licensed and he stated that Allstate will ensure that I do get the required licenses and full training for no additional costs.

Being that this is new to me, what am I missing here? Is this "booked business" not real policies or does this mean something that I am not understanding?

I understand that they do have a great deal of policies that are being turned over since there are a lot of offices/agents closing/retiring. So, would this not be a good thing that you can actually buy into the business with actual policies on the books? This way you can go after new business while you are working the current client list?

Again, being that I am not in the industry today I may be missing something. Can someone please let me know before a get myself into something that I will regret?

Thanks

What state are you in? If you are in Florida I would say go independant vs purchasing an Allstate agency

 

[xrac]

I just received a call from Allstate today asking if I would be interested in owning a Allstate business. What the person told me today is that you can buy "booked business" to start so you have business right from the start. In addition, I am not currently licensed and he stated that Allstate will ensure that I do get the required licenses and full training for no additional costs.

Being that this is new to me, what am I missing here? Is this "booked business" not real policies or does this mean something that I am not understanding?

I understand that they do have a great deal of policies that are being turned over since there are a lot of offices/agents closing/retiring. So, would this not be a good thing that you can actually buy into the business with actual policies on the books? This way you can go after new business while you are working the current client list?

Again, being that I am not in the industry today I may be missing something. Can someone please let me know before a get myself into something that I will regret?

Thanks

I highly recommend that you contact the [email protected] and subscribe to their newsletter. It will give you a lot of insight into Allstate.
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This just in....effective March 1, 2010 the Ideal Agency Dress Code will go into force.

Monday-Thursday will be dark suites for men along with a light blue shirt and Allstate issued tie with the Allstate logo on it. Black shoes- laced only (shoes should be shined weekly). Women will wear a light blue blouse with dark blue pants and black slip on shoes- no heels over 1.5". On Fridays you may wear an optional Allstate issue blue short sleeved shirt with khacki slacks and brown slip on shoes with a brown belt. On days when the your local outside temperature is expected to fall below 70 degrees you may compliment the Allstate approved shirt with an Allstate sweater or opt for a long sleeve Allstate approved shirt. Also, Allstate approved name badges must be worn during normal business hours (see the Agency Standards manuals for clarifications on badge shape, shape and placement requirements).

At this time we are also reviewing potential standards for what type of accessories and jewelry should be permissible. Rest assured once the determinations have been made they will be communicated to you through your field sales leaders.

This is a quote from the Runningclock.

 

[simpsonian]

There are currently 5 Allstate agencies for sell in South Mississippi and there are several others that have told me they are considering. I personally got out in October after 6 years of faithful service. I was a top life producer, p&c producer, and even did my own investment for clients. I was on the regional advisory board for two years and qualified for many company trips. The Allstate I left was not the same Allstate I signed up with. The Ideal Allstate agency, according to Allstate, is one that has 2 or more offices and has at least 3-4 million in written premium on the books. If you are not that size , the odds are you will not have enough renewals to pay for your expenses, and offset all the lost customers due to 150 % rate increases for property alone in south mississippi, and re-running credit on customers statewide in the middle of a recession and then raising their rates yet again. That's Allstate's Stand!

 

[Benefits Man]

I sure hope insurance doesn't go web based. Otherwise we'll all be replaced by web servers...

 

[ocdmachine]

They are called "seed accounts". Usually less than 750 policies for a scratch agent. It gives you the opportunity to cross-sell and have some cash-flow. Be smart though, talk to scratch agents, past and still employed. It can be a great career but times are changing fast, really fast. Managers do not have a clue!

 

[lifeandannuity]

1 Simple reason....they are not competitive on their fixed annuity business. not that many people want to take risks with variable anymore which is their bread and butter.

 

[johndale]

I think they are thinking of new strategies for this year. It's something to look forward.

 

[str8poker69]

if you dont pass the series 6 the take everything from you!

 

[CatalystNV]

I have worked in three Allstate offices. The first one was wonderful -- two great agents who'd been in the business for years. They offered great customer service, had the highest retention rate of any other Allstate company I worked for, but there was one BIG program.

Sort of like the people who bought a home here in Vegas back in the high times of 2006, only to watch it fall by 1/2 in 2009, they had bought their business at the height of it's price and are now slowly going under. They used to employ 15 and were down to me.

I went to work for two other offices. One was one of the 100 top sellers of the SW region and there was a reason for that--she paid top dollar for Web quotes (half of which were bogus), started at 6 a.m., continued until 9p.m. PLUS provided a lot discounts her clients were not entitled to (can you say F-R-A-U-D_. In one year she went through 3-1/2 times the "dead files" as my first employer, but did not care. Her customer service was nil. All that mattered was the amount she produced and in a few years she will be gone--simply because she did not care about people continuing with her or referring her to their friends.

The third person was a nightmare--new owner, had never sold insurance--wouldn't let me do endorsements because he didn't know how to--lost customers because he didn't know how to write certain policies. First morining gave me a list 30 people to cross sell rental insurance to which he had supposedly sent an email about--told me he needed 15 to 20 sales. I called these people, they had NO idea what I was talking about. Turned out his email never even MENTIONED rental insurance but about how they could save 25% off of their car insurance. I rewrote the email, stated how important rental insurance was, told them i could show them how to save enough off of their car insurance to cover the rental and get some money back. He went ballistic on me. His agency is not going to last.

But he made five sales off my email. In one morning.

 

[benseattle]

For eight months, worked with various Allstate agents (EA's) as an EBS, an Exclusive Benefits Specialist, selling Allstate Workplace benefits to contacts provided (supposedly) by the agent. I won't get into THAT experience right now, but I can tell you that Allstate is now moving toward more "mega-agencies," that is, one agent who has several offices with large books of business. I see big agents always ready to buy more existing books and folding them into their own. Obviously, bigger agents have the cash to buy other books while I'm told that fewer and fewer smaller/newer agents can get the credit line to do the same. Remember the days of two Allstate agents hanging a "dual" sign and splitting expenses? Long gone. Also: lots of pressure to produce in various line. Right now, Allstate wants more Auto; problem is, the company isn't competitive at all right now.