Running Clock Rant: Scratch Agent “Wiped Out”

In my day to day activities I have the opportunity to meet with agents from all companies. On Wednesday I met a former Allstate agent. This person started a scratch agency and survived for 5 yrs. The area managers encouraged this person to ‘invest more’ in your business. This was during the 2002-2007 period and  real estate was increasing in value. So, believing their repulsive story…the agent refinanced twice. NOT ENOUGH PRODUCTION was the call…and eventually took TPP–but not before, the agent lost the house and car. Naive–you bet. Business person–questionable….a failure?…not in anyone’s eyes except Allstate’s. I spent time with the agent assuring that he/she was not a failure but rather was lured into a situation that was a ‘no–win’ situation. Now, more agents are buying into the 8/8 contract because “We can make up to 14% more”…..and perhaps they will. However, insurance cos are NOT static and there is the ‘insurance cycle’. Finally, as the company allows large agencies to buy smaller agencies–my question: “Who will ultimately purchase these large agencies?’” The company will do it, and it will be valued at a 8% commission level. When this happens, those ‘fat cat’ agents will scream — “That’s not fair!” Naive perhaps, business people–questionable–drinkers of ‘kool aid’–unfortunately.

From Runningclock 2205

Three independent sources one manager from the field and two sources were informed Friday of Tom Wilson’s strategic move to eliminate the bottom 30% of the agency force by year end. The sales field will have additional follow-up meetings within weeks to implement these procedures. They are terminating 30% of agents by year end.

Allstate is going to finance at 5% , 7% and 9% the terminated books of business. They will allow agents to merge the terminated books of business into their books. If they meet the goals of production  from the terminated agents they will have loan forgiveness and interest forgiveness of the acquisition cost of the terminated agents. There will be such a glut of books of business on the market that Allstate feels this will be easier for the new agents to purchase as the prices will dramatically fall.

Their goal is to increase or show an increase of APA (Apps Per Agent) by terminating the agents in mass and merging them into larger agencies. This will at least initially not increase production for the company but will look like the APA has increased due to the mergers.

The goal is to convince Wall Street of the increase in Apps Per Agent even if we fall in Policies In Force or Agency count. This will be supplemented by Allstate financing the glut of agencies on the marker at a new all time low on agency values.

Again agents will  be rewarded by loan and or interest forgiveness if they grow the terminated agents books of business.

It has also been reported to me that it is Tom Wilson’s intent to further reduce agency bonuses.  This is an attempt to reduce net income to between 80k and 100k per year for large agencies.  There will also be intimidation used (my opinion) to convince agencies to “invest” 8k plus each month to sustain agency growth.

Agent Forced Out After 30 Years

My last day as an allstate agent is (better not say the exact date).   Anyway, after 30 years they have decided that I am not quite what they want.   Also, I was informed by a very reputable source that 4 other agents with as much or more time, and I mean some heavy hitters of years past just got their 180 day warning letters.

Bet you  5 bucks the next thing you see in Kentucky is a service center (Canadian Style) open up.   Amazing, just amazing that a corporation is allowed to steal the livelyhoods of those that helped build this company.   Don’t know why I am surprised, heck I sat there and watched them fire us 11 years ago.

Just sat there.

Still believing that the Lone Ranger would come riding in.   Fairy tales are just that.   Fairy tales.   Shame on me for believing.   I wish all those that I leave behind the luck of the world.   You will surely need help stopping this Titanic from sinking.   I am afraid the gash in the side of this ship is too great to fix.   I wish you all good fortune and peace.
Signed,

Disolusioned, but not really surprised.   Also ashamed that I let this happen.

 

Allstate: No Action After A Year!

July 17th last year my neighbors house caught fire and nearly completely burnt to the ground. There are only 3 walls left standing and even those have been charred black in some spots. Now you would like to think that when you get house insurance that if something bad happens your policy would actually be enforced and you would get the help you need right away. This hasn’t been the case. We’re coming up on the one year anniversary of the house catching fire and Allstate still has not paid out the insurance policy. They keep going back and forth trying to stick it to the homeowner who had his house burn down. I am not even the homeowner, I’m just a neighbor who is sick and tired of seeing a burnt down house two doors down. It is dragging down the value of every house around it and is a horrible eyesore for everyone!
We have tried to call Miami Township in Clermont county Ohio but they haven’t been able to get anything done either. I guess the moral of the story is to beware of Allstate if you’re looking for house insurance that will actually insure you if some bad happens, well at least for the next year after it occurs.

Michele Linca and Aaron Jay Goodrum

Michele Linca is an Allstate agent in Florida. She is often seen, in public, with Lauren Woodard, of Mission Capital.

She had been in some kind of relationship with radiologist, Aaron Jay Goodrum.

While at Goodrum’s residence, Goodrum became angry with Linca. He threw her onto his bed, restrained her with tape, cut off her clothes and threatened her with physical harm.

Linca escaped and filed a complaint against Goodrum. Goodrum was disciplined by the Florida Radiology Board. He was also required to submit DNA samples and undergo a psychosexual evaluation.

Running Clock Rant: “Heads Rolling in Texas”

“Here is TX the heads are really starting to roll. Every week I am hearing a new name who has just left or is about to leave. Many of them I know to be solid agents who are competent in running their agencies. Unfortunately it is not enough for us to be good agents doing a competent job. Everyone is expected to be a star, and that is not a realistic expectation. It does not matter your age, tenure, sex, all that matters is how are you doing on the quotas given. Unfortunately the quotas given are one’s that TC knows most will not hit.

A 30+ year employee claims adjuster friend of mine told me that he is noticing more people being fired in the claims office for customer service than he has ever witnessed. He also told me that his pay grade is being re-evaluated and that he should expect a pay cut next year because they will lower the pay grade for his position.
Even though I personally have never received a letter, I am attempting to reallocate my finances to be prepared. My plan is to try and figure out how to survive, but at the same time be realistic. The P&C quotas given me are one’s that I do not feel I will be able to hit even if every thing were to fall in place. I will try to hit the life quota and keep my fingers crossed.

Any news on the Manager meeting that has been reported to take place this month in home office? When the managers really start to roll and that will be next, I am certain that the one’s remaining standing will be the ruthless ones who will resort to anything to hit a number.”

One Year Later: The (mis) Education of Hank Tiller

This screenshot was taken on March 13, 2010 at 1902 GMT.

This screenshot is reproduced as “fair use” to make commentary about Hank Tiller.

Hank Tiller, one year later, still doesn’t get it. The caption should read “About the Tillers” – no apostrophe needed! Would you trust these people to write accurate insurance policies?

Speaking of education, Hank Tiller is still “proud” of the fact that he attended a questionable school in England.

This is, in all likelihood, the same Hank Tiller responsible for the sexual harassment of Mary Jane Womac.

Running Clock Rant: E-Mail Fraud?

Reports from here in Michigan are that that the latest auto rate hike of 10% or more also came with a new Electronic Bill discount of 10%.  It seems some of the Allstate agents, in an effort to save customers, are switching the clients over to this even if they don’t have email, that is they are using a their own Hot Mail account or other like web mail address, then printing the bill and mailing it to the customer.  I can’t wait until there is a lapse, or worse a claim.

Once again it would be real easy to figure this out, if they wanted to know.

Has anyone else heard of this?

Allstate Drops Coverage in South Carolina

As news spreads that Allstate is dropping coverage of mobile homes along the coast, mobile home owners worry it may become a trend.

Allstate has announced it will drop hazard insurance for an estimated 2,500 mobile homes along Coastal South Carolina, including all of Horry and Georgetown counties.

A spokesman said it’s becoming too pricey to insure those homes, especially in hurricane-prone South Carolina.

At Crystal Lakes Mobile Home Park near Surfside Beach, the office manager says she fears more companies will follow suit.

“That’s awful.,” said Tami Bailey, manager at Crystal Lake.

“A lot of companies are dropping mobile homes, well probably all homes, but I know the rates are so high and if you can’t get insurance around here, what are people going to do? Especially being in a hurricane zone, everybody needs insurance,” she added.

Allstate says those affected will likely be able to receive coverage from American Modern Insurance Group.

Terminated for Being ONE POLICY DOWN!

“I have been an agent with Allstate for 22 years and my office partner has been here for 28 years.  We are one of the few multi agent locations left that I know of.  Allstate has decided to pull his contract after 28 years.  He has great customer sat ratios, exceptionally low loss ratios, and an excellent retention ratio.  Like many of us he did not grow last year.  Actually he only was down by 1 policy.  His life numbers weren’t great but they weren’t on the bottom.  He is 57 years old.”