Yes they were employees but they dumped them to dump their pension obligations. Now they are 1099's but treated like employees.
Why Are There So Many Allstate Agencies for Sale Now?
- Thread starter FinanceGuy
- Start date
Yes they were employees but they dumped them to dump their pension obligations. Now they are 1099's but treated like employees.
- 228
I get about 3 recorded messages about these all-state agencies for sale, sounded like a scam, so I didn't even give the offer the time of day. What are you guys doing with these offers?
- 211
Our agency was running from an office and we moved last year to a strip mall. Since we sell insurance in over 30 states, it clearly does not help us draw in out of state clients, but on the local level people have been coming in. While we stilI sell in most states by phone, the store has helped. Also, I noticed that Geico has opened a local office in a bigger shopping center a few miles away. The guys there told me that they are trying to open more stores because the people who buy online still feel that they need to consult a professional before finalizing the purchase. I feel that there will be a role for independent agents for a long time, because not all people just want to buy online. I am located in southern California where it seems that everyone has a tablet pc and smartphone, including myself, but people have told me that our storefront has given us increased credibility. Also, there are likely goong to consistently be people who want to talk to a professional.
Thoughts?
Pardon my typos, i am typing from my tablet.
Thoughts?
Pardon my typos, i am typing from my tablet.
- 241
In response to xrac and norwayguy's comments, you are absolutely correct.
The history of this goes back to 2000, the year Allstate agents call the "mass termination". Agents were lured to believe they would be "entrepreneurial" in nature and have the ability to control their own destinies. They were also sold a bill of goods that in addition to this, their BOB would be their main retirement source without the foresight that Allstate would have to approve every purchaser and at times, will step in and attempt to prompt a new buyer to get the selling agent to lower the price.
Allstate slowly changed every page in the agent's unilateral contract.
Make no mistake, Allstate is a great company and have been the P&C innovators that SF and Nationwide usually follow after changing policy, but agents in many regions are faced with high, unattainable "expected results", increased non-renewals by customers due to constant rate increases and starting in 2011, Allstate is monitoring agent quoting.
Yep, every agent quote is recorded and matched against the rest of their district and market leaders regularly send emails congratulating the agency with the highest number of quotes.
There are numerous liitigations against Allstate by their veteran agents. Contract violations, age discrimination and pension manipulation of the terminated agents can be seen at: www.allstatecase.com.
The Allstate agency forced is loaded with knowledgeable and talented people. Many of these individuals would love to start "life after Allstate", but have too much invested and the market for selling their books now is a buyers market unless the book is a medium to large, great loss ratio, and what I believe extremely important, location. Once an agent opens an agency, they will spend their entire career in that area with usually no exceptions. Location is prime.
Allstate agents are independent contractors by virtue of 1099 but in essence, are employees. NAPAA members and many agents have sent complaints to IRS and state attorneys general but always fall on deaf ears as Allstate barrage of legal guns will be their to once again, justify their actions.
Thus, even successful agents are looking to sell as they see renewals and books diminish, expenses going through the roof and big brother never being satisfied.
If an agent gets a "90 letter", chances are his/her agency will be sold at a firesale price. Many, many agents throughout the country are experiencing this nightmarish situation. If they don't have someone behind their desk, trained, licensed and ready to go, they are forced to take the TPP, which is an insult to any agents loyal association with Allstate. The more successful agents that sell with foresight, planning their strategy without pressure, get better prices for their books and in some cases, can even create bidding wars by qualified agents and outside buyers.
Agents planning to sell must seriously think about their future and be not be hasty if they aren't being pushed out. With all of the BS, that monthly check is hard to give up and I was able to accomplish many of my goals in life due to my hard work with Allstate.
After 28 years, I sold my BOB only due to age and the fact that I wanted to do some travel and enjoy life since my children are grown.
I actually sold my book to a friend and fellow agent I've know for 25 years. I thought about it for 4 years and when I was able to negotiate the price I wanted decided to sell.
I have been independent now for a short time. I'm starting to enjoy this and when I go to lunch with some of my Allstate buddies, I just listen to their current woes and just smile.
If anybody is contemplating an Allstate offer or looking to sell and are confused, I would be more than happy to try to give some advice. I have simply addressed the topic of this post but by no means suggesting agents should sell their books or prospective hires should not consider the opportunity.
The history of this goes back to 2000, the year Allstate agents call the "mass termination". Agents were lured to believe they would be "entrepreneurial" in nature and have the ability to control their own destinies. They were also sold a bill of goods that in addition to this, their BOB would be their main retirement source without the foresight that Allstate would have to approve every purchaser and at times, will step in and attempt to prompt a new buyer to get the selling agent to lower the price.
Allstate slowly changed every page in the agent's unilateral contract.
Make no mistake, Allstate is a great company and have been the P&C innovators that SF and Nationwide usually follow after changing policy, but agents in many regions are faced with high, unattainable "expected results", increased non-renewals by customers due to constant rate increases and starting in 2011, Allstate is monitoring agent quoting.
Yep, every agent quote is recorded and matched against the rest of their district and market leaders regularly send emails congratulating the agency with the highest number of quotes.
There are numerous liitigations against Allstate by their veteran agents. Contract violations, age discrimination and pension manipulation of the terminated agents can be seen at: www.allstatecase.com.
The Allstate agency forced is loaded with knowledgeable and talented people. Many of these individuals would love to start "life after Allstate", but have too much invested and the market for selling their books now is a buyers market unless the book is a medium to large, great loss ratio, and what I believe extremely important, location. Once an agent opens an agency, they will spend their entire career in that area with usually no exceptions. Location is prime.
Allstate agents are independent contractors by virtue of 1099 but in essence, are employees. NAPAA members and many agents have sent complaints to IRS and state attorneys general but always fall on deaf ears as Allstate barrage of legal guns will be their to once again, justify their actions.
Thus, even successful agents are looking to sell as they see renewals and books diminish, expenses going through the roof and big brother never being satisfied.
If an agent gets a "90 letter", chances are his/her agency will be sold at a firesale price. Many, many agents throughout the country are experiencing this nightmarish situation. If they don't have someone behind their desk, trained, licensed and ready to go, they are forced to take the TPP, which is an insult to any agents loyal association with Allstate. The more successful agents that sell with foresight, planning their strategy without pressure, get better prices for their books and in some cases, can even create bidding wars by qualified agents and outside buyers.
Agents planning to sell must seriously think about their future and be not be hasty if they aren't being pushed out. With all of the BS, that monthly check is hard to give up and I was able to accomplish many of my goals in life due to my hard work with Allstate.
After 28 years, I sold my BOB only due to age and the fact that I wanted to do some travel and enjoy life since my children are grown.
I actually sold my book to a friend and fellow agent I've know for 25 years. I thought about it for 4 years and when I was able to negotiate the price I wanted decided to sell.
I have been independent now for a short time. I'm starting to enjoy this and when I go to lunch with some of my Allstate buddies, I just listen to their current woes and just smile.
If anybody is contemplating an Allstate offer or looking to sell and are confused, I would be more than happy to try to give some advice. I have simply addressed the topic of this post but by no means suggesting agents should sell their books or prospective hires should not consider the opportunity.
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- 211
I have found something similar. We primarily lose to the heavy online advertisers when they have a great price or the client is only shopping for price. Geico even just opened an office a few miles away.
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!
In response to xrac and norwayguy's comments, you are absolutely correct.
The history of this goes back to 2000, the year Allstate agents call the "mass termination". Agents were lured to believe they would be "entrepreneurial" in nature and have the ability to control their own destinies. They were also sold a bill of goods that in addition to this, their BOB would be their main retirement source without the foresight that Allstate would have to approve every purchaser and at times, will step in and attempt to prompt a new buyer to get the selling agent to lower the price.
Allstate slowly changed every page in the agent's unilateral contract.
Make no mistake, Allstate is a great company and have been the P&C innovators that SF and Nationwide usually follow after changing policy, but agents in many regions are faced with high, unattainable "expected results", increased non-renewals by customers due to constant rate increases and starting in 2011, Allstate is monitoring agent quoting.
Yep, every agent quote is recorded and matched against the rest of their district and market leaders regularly send emails congratulating the agency with the highest number of quotes.
There are numerous liitigations against Allstate by their veteran agents. Contract violations, age discrimination and pension manipulation of the terminated agents can be seen at: www.allstatecase.com.
The Allstate agency forced is loaded with knowledgeable and talented people. Many of these individuals would love to start "life after Allstate", but have too much invested and the market for selling their books now is a buyers market unless the book is a medium to large, great loss ratio, and what I believe extremely important, location. Once an agent opens an agency, they will spend their entire career in that area with usually no exceptions. Location is prime.
Allstate agents are independent contractors by virtue of 1099 but in essence, are employees. NAPAA members and many agents have sent complaints to IRS and state attorneys general but always fall on deaf ears as Allstate barrage of legal guns will be their to once again, justify their actions.
Thus, even successful agents are looking to sell as they see renewals and books diminish, expenses going through the roof and big brother never being satisfied.
If an agent gets a "90 letter", chances are his/her agency will be sold at a firesale price. Many, many agents throughout the country are experiencing this nightmarish situation. If they don't have someone behind their desk, trained, licensed and ready to go, they are forced to take the TPP, which is an insult to any agents loyal association with Allstate. The more successful agents that sell with foresight, planning their strategy without pressure, get better prices for their books and in some cases, can even create bidding wars by qualified agents and outside buyers.
Agents planning to sell must seriously think about their future and be not be hasty if they aren't being pushed out. With all of the BS, that monthly check is hard to give up and I was able to accomplish many of my goals in life due to my hard work with Allstate.
After 28 years, I sold my BOB only due to age and the fact that I wanted to do some travel and enjoy life since my children are grown.
I actually sold my book to a friend and fellow agent I've know for 25 years. I thought about it for 4 years and when I was able to negotiate the price I wanted decided to sell.
I have been independent now for a short time. I'm starting to enjoy this and when I go to lunch with some of my Allstate buddies, I just listen to their current woes and just smile.
If anybody is contemplating an Allstate offer or looking to sell and are confused, I would be more than happy to try to give some advice. I have simply addressed the topic of this post but by no means suggesting agents should sell their books or prospective hires should not consider the opportunity.
This is the best and most informative post about Allstate on this forum.
- 4,132
While not an All state agent, I was a NYL agent and they purged the agent pool too in the 90's. Pretty much all of the big carriers have done some form of this to their captive (1099) agents in the past decades. Contracts changed and if you were moderate producer for a career agency, you were a dead man walking.
In my case it took almost a decade with the court settlement. NYL used to be very agent centered as I am sure All state was too. All it takes is a change at the top and the entire culture changes. Agents go from being an asset to the compnay to an expense that must be minimalized.
If you're a career agent, better save some money like you aren't. What a carrier says today may not be what they're saying tomorrow.
In my case it took almost a decade with the court settlement. NYL used to be very agent centered as I am sure All state was too. All it takes is a change at the top and the entire culture changes. Agents go from being an asset to the compnay to an expense that must be minimalized.
If you're a career agent, better save some money like you aren't. What a carrier says today may not be what they're saying tomorrow.
- 26,086
My wife was a senior claims rep with Allstate. It was a great place to work. Then in about 1993, they went public. Then a meeting was called. The management basically said this is the new Allstate. These are the new rules. If you do not like it we are excepting resignations.
- 1,473
Allstate is still a good gig if you want to learn the business in there dime. They will pay you for training and high comp rate for like 5 years.
Plus they will force you to produce like a machine.
They love new agents so they can have them buy a current BOB from the old agent and grow it for them. There can be a lot of money to be made there.
Plus they will force you to produce like a machine.
They love new agents so they can have them buy a current BOB from the old agent and grow it for them. There can be a lot of money to be made there.
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