Why Are There So Many Allstate Agencies for Sale Now?

[Larry Tew]

Paul, maybe State Farm is really like a good neighbor in Chicago, but the people in the Gulf Coast might have a different opinion. Just google "state farm katrina" and you'll see a different viewpoint. I'm glad you feel good about the company you work for, but you kind of stuck your chin out there on this one. It reminded me of my Guardian days when Ol' Clem down at the Jiffy-Lube used to tell me how he and all his A.L. Williams homies were going to blow our doors off if he ever called on our clients.

 

[VolAgent]

Someone has been drinking too much of the company kool-aid. Nothing wrong with State Farm, but what are you going to do when they become uncompetitive? Because I guarantee you, there was a time when Allstate agents were saying the exact same things about State Farm in the Chicago area.

 

[WinoBlues]

>>""I work for State Farm in the chicagoland area, and I am glad every time I work with someone that is with Allstate, because I know I am going to make a sale!""

I know what you mean. I am a independent life insurance agent. I am glad every time I work with someone that is with State Farm, because I know I am going to make a sale!

>> ""With that said, internally, we are getting ready to wage the biggest internet war the insurance industry has ever seen! We have vowed to become number one in the internet space and online shopping, and we will do it within side of 5 years""

Where will the agents be in 10 years? It is great that you feel so loyal to them, However do they feel the same way toward you? What happens to your book when you decide to retire?

I work for State Farm in the chicagoland area, and I am glad every time I work with someone that is with Allstate, because I know I am going to make a sale! Not sure why (have some ideas about the stock markets and 30% rate increases on fire policies), but they are not very competitive around here, yet, there are pockets (zipcodes) where they are still pretty competitive because they want to hold onto that business. Bottom line, their rates are high, so we take business from them all the time.

If you want to go with a mainline company, choose State Farm!

In response to all this talk about Geico and Progressive crushing Allstate and State Farm, and brick and mortar shops being a thing of the past...I'll say this:

We are very aware of the rising trends in internet shopping...

WHAT? You think we are gonna just sit back and watch these small companies take over! NOT A CHANCE! Last time I checked, you could roll the next 10 companies together, and State Farm is still number 1! With that said, internally, we are getting ready to wage the biggest internet war the insurance industry has ever seen! We have vowed to become number one in the internet space and online shopping, and we will do it within side of 5 years! Yes, we are a big company, and it takes us time to move such a large ship, but our course has been set, and we will not be defeated. You heard it first here, from an insider, its coming, you can count on it!

 

[Bertolinoins]

The SF agent bragging about his company taking to the internet puzzles me... what do you think is going to happen to those online clients. They might be assigned to you but what do you think the compensation is going to be? SF owns your book if business and will give you whatever they feel like giving you. Do you really think the are going to drop big money becoming an internet quote machine and still compensate you anywhere close to where you are now?

 

[agentinsure]

I work for State Farm in the chicagoland area, and I am glad every time I work with someone that is with Allstate, because I know I am going to make a sale! Not sure why (have some ideas about the stock markets and 30% rate increases on fire policies), but they are not very competitive around here, yet, there are pockets (zipcodes) where they are still pretty competitive because they want to hold onto that business. Bottom line, their rates are high, so we take business from them all the time.

If you want to go with a mainline company, choose State Farm!

In response to all this talk about Geico and Progressive crushing Allstate and State Farm, and brick and mortar shops being a thing of the past...I'll say this:

We are very aware of the rising trends in internet shopping...

WHAT? You think we are gonna just sit back and watch these small companies take over! NOT A CHANCE! Last time I checked, you could roll the next 10 companies together, and State Farm is still number 1! With that said, internally, we are getting ready to wage the biggest internet war the insurance industry has ever seen! We have vowed to become number one in the internet space and online shopping, and we will do it within side of 5 years! Yes, we are a big company, and it takes us time to move such a large ship, but our course has been set, and we will not be defeated. You heard it first here, from an insider, its coming, you can count on it!

I like it anytime a Stale Farm client calls me looking for life and business quotes, hehehehe. YOu can keep the personal lines crap, too service intensive and low profit for my tastes anymore. But not bad if you dont mind a company who is adept at giving it to their customers (excuse me, mutual owners) gyping them on their auto claims to pad their bottom line. When I worked with Allstate years ago I kept a nice collage of newspaper articles on my back wall just so people could comment of all the lawsuits (fought and won) against Stale Farm for use of gypo auto parts just ot make more money.
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I hear you. It would be naive for anyone to ever think a company or manager will make a choice or decision that will deviate significantly from their own best interests just to meet yours. Its the ole WIFFM play at work, but then hey if the tables were turned I'd play it likewise. That is why I believe being independent gives you a lot of latitude. You dont have to ask for permission to get into an area that may best serve YOUR interests. Screw them.

As a new Allstate Neighborhood Office Agent my office was making a lot of sales and winning awards in the suburbs I was in, until, they started loading it up with agents.I was in the South in an area near the coast.I wanted to move the office 5 miles closer to a hot market of middle class industrial and near a lot of the car dealers that I worked with.My "new" Allstate Area Manager Ron T who had never been in sales told me that Allstate didn't want to let me move ,because it would be that much closer to the coast and they did not want any more business from there.I told him I would not write any homes in Tier 1 and that the market I was after was not the coastal properties, any way, but a market near the car dealerships down the highway which was a hot market.He said, absolutly not.You will not move there.I soon after quit Allstate and started an independent agency in the area I wanted to go to with Allstate and it grew to become one of the busiest agencies in that area

 

[Paulgeo]

thanks for all the insightful comments, I understand each of your concerns about my post, I will consider each of them, you all make good points. I did not, by any means, mean to put another company down... I just wanted to make a statement about how the largest PC insurer in the country plans to make a stand against online companies that are trying to take over. The Geico's and Progressive's of the world have been very successful in recent years, and we have learned a lot from them, and we will take it and adapt, that is all I was trying to say. Thanks again.

 

[FLInsa]

I work for State Farm in the chicagoland area, and I am glad every time I work with someone that is with Allstate, because I know I am going to make a sale! Not sure why (have some ideas about the stock markets and 30% rate increases on fire policies), but they are not very competitive around here, yet, there are pockets (zipcodes) where they are still pretty competitive because they want to hold onto that business. Bottom line, their rates are high, so we take business from them all the time.

If you want to go with a mainline company, choose State Farm!

In response to all this talk about Geico and Progressive crushing Allstate and State Farm, and brick and mortar shops being a thing of the past...I'll say this:

We are very aware of the rising trends in internet shopping...

WHAT? You think we are gonna just sit back and watch these small companies take over! NOT A CHANCE! Last time I checked, you could roll the next 10 companies together, and State Farm is still number 1! With that said, internally, we are getting ready to wage the biggest internet war the insurance industry has ever seen! We have vowed to become number one in the internet space and online shopping, and we will do it within side of 5 years! Yes, we are a big company, and it takes us time to move such a large ship, but our course has been set, and we will not be defeated. You heard it first here, from an insider, its coming, you can count on it!

Paul you sound like a nice guy but here is what I am picturing in my head.

Me going to a company life SF and saying: "Here, this is my $XXXX check, I would like to be a business owner, now please tell me what I can and can't do".

 

[Ray Dr]

Finance Guy,
I am in your position one year later. Did you startup with Allstate? If so any advice for another new agency?

 

[agentinsure]

i have an idea, start with allstate if your new and learn how to write business and write it like there is no tomorrow as if you were going be with them forever, kiss ass and all that good stuff, then if there are other agencies around looking to sell for a song and dance buy them up as long as the company lets you. You can grow a very fine operation this way and ten years later you'll never look back. But if you get to the point before then and the company let you do what you want, you can always write like hell into preferred so no one can beat your rate and notify the company of your intention to exercise their buy out. Youll get at least 1.5 on everything you wrote right up to the end, not a bad severence package. Then at renewal all the substandard customers you wrote into allstate preferred will get pissed and you can come in and "save" the day and write em all into one of your new companies or whoever your writing then. Im just talking out loud of course mind you, but it is funny to think about. Of course another option is go to Stale Farm and just kiss ass and give them your money so they can grow their business on your back!

 

[jeffbennett13]

This is an ongoing query, for sure, but in reality the number of agencies for sale has been pretty static. I have bought, sold and operated 5 different agencies including consolidations in 2 different states and regions. At one time I owned the largest dual location agency in that state and my agencies performed in the top 5% of agencies across the country. I'd be happy to lend any insight to those considering this entreprenaurial career path, just shoot me a note at [email protected]. BTW, I still own an agency, in NC, and there have definately been changes to be aware of in the agency force, but taking advice from someone who has not been or is not an agency owner is just speculation.