Running Clock Rant “This Guy Was Able to Move To A Small Town And Take Over My Life”

I live in a small town and had worked 1985-1999 years as a support staff for my dad.  In 1999 I was hired as an agent with the promise I would be able to purchase my dads book, much of what I helped grow.   Last May he was forced to retire and sell due to critical health issues.

Because I was not the top 25th agent in the country and did not have a 6/63.  I did not qualify to purchase it.   So a MDL  referred a guy with no insurance back ground from a much larger city to purchase it.   The following October my father died.  I was over whelmed by the number of customers (including my own family) upset that they were just sold with out a choice.  When they called 1-800-Allstate they were told, that they could easily change their agent.  However, My name was on over 200 policies which I was not being compensated for.

This past February I left TC (after 20 years of service)   and I could not find a buyer who wanted the headaches.  So I took the TPP.   My phone number was immediately rolled to the new agent within a day.  The customers were being told who knows what.   When I received my policy it had Allstate as the agent with the other agents address.   The irony of it all is I just found out that the new agent was moving to my previous office location next month.

So this guy was able to move to a small town and take over my life and I could not do a stinking thing.  I was afraid to contact my book of business and explain all this, due to my do not compete.  I was told they would stop paying the TPP if I did anything against them.  I have been offered several jobs with other insurers, but afraid to work until my 1 year in February is up.  I am afraid of what kind of conspiracy this guy and the Company have against me.  Now that I look back over the last few months I am wondering if I should have defended my honor with a note or just let them hang themselves.  I am still trying to decide whether to go back with the insurance market.  I have an offer from Farmers, but the contract looks a lot like the Allstate, just a little gun shy

Running Clock Rant “Cessation of Some Agencies”

Another Running Clock Rant – More “jobs in jeopardy” due to Allstate’s poor management and greed?

“Friday I listened to the quarterly report..I do realize they are speaking to a group of investors..but I couldn’t get over the double speak…First of all, as they spoke of cessation of some agencies…this is a polite way of saying…we’re firing some agencies…there was no big support of the agency program,,outside of the fact that it is one of three distribution points,,,,nowhere did Mr Wilson indicate the % that comes from the agency force.

In addition, they are still trying to ‘crack the code’ on the loyalty index. However, it is tied to profit sharing, agency expectation etc…but they haven’t cracked the code yet…How about, treat your agents fairly…what dumb smuck will sign up with this outfit AND YET they are advertising in Texas and Florida.

All in all it was a numbers game, with Progressive losing some,,Geico gaining some and we’re at 11% penetration…with 25 mIllion policyholders..

Meanwhile, I listened to an agent who hadn’t made his numbers in 2 yrs and after 25 yrs is resigning the fact that he will be asked to leave next year…hope he can find a buyer…my response…NO ONE in the unit qualifies for a purchase…he said “oh, s,,t! that’s right..” The statement…”Asked to leave next year…and the C.L.I OR A.L.I. just doesn’t seem to fit those words..

If an agency is below 60% loss ratio…who gives a rat’s patoot….what they do….they are making money. I just heard of an manager going into the sales force and then after two years scrabbled to get back as a manager…The old saying “Them that do,,,sell. Them that don’t…go into management.” It holds true here as well….”

Sam Zenor: One of the Best or One of the Worst?

Make up your own mind! There’s a rather vague posting about him here. It is a bit odd that “best insurance agents” only has one entry!

But there’s also this complaint.

The Education of Hank Tiller

Here’s a screenshot of Hank Tiller’s website taken on January 31st, 2009 at 16.34 GMT. We respect his copyright, and are posting it under the Fair Use Doctrine.

Some of the wording is pretty interesting:

“Hank is a graduate of Red Bank High School and has a B.A. degree from the University of Tennessee. Hank also attended The Warnbrough House College in Oxford, England. Hank is a former 20 year agent/agency manager with Allstate Insurance Company. Hank was also the district manager at Farmers Insurance Group for six years.”

You’d thnk a man who brags about his education would at least spell the name of the school properly! It is not WARNBROUGH but WARNBOROUGH.

It is also worth mentioning that this college is not part of Oxford University. This article is worth reading if you would like to know more about that.

We’re not sure what subject Hank studied there. It almost certainly wasn’t English, though, or he would have learned that “The Tiller’s” refers to something belonging to a single person named Tiller or possibly someone who works on a farm or ship. If he wanted to refer to his family, he should not have used the apostrophe, and ‘The Tillers” would have been the thing to write.

We’re pretty certain this is the same Hank Tiller mentioned here. If this is true, then it seems he has learned quite a few things.

In good hands with Allstate? We certainly don’t think so!

Allstate and Sterling: Not a Level Playing Field!

Allstate Acquisition of Sterling Collision Centers: What Does It Mean to the Industry?

Posted 6/15/2001

By Robert L. Redding, Jr.

As the industry treads into new territory with Allstate’s acquisition of Sterling Collision Centers, everyone is asking the same question, “How will this impact the industry? 

Collision repairers learning of the recent Allstate Corporation acquisition of Sterling Collision Centers, Inc. are not faced with a clear “negative or positive” analysis of the purchase. Clearly the industry is moving quickly into new areas but one can not ignore trends over the last years.

From single collision facilities to companies expanding to multiple locations during the 1980s, the industry has been moving parallel to other business interests. The increase in the number of direct repair programs (DRPs) was not dissimilar to the health care industry and what we now see in the lumber supply as well as other building trade areas. During the ’90s, consolidation of repair facilities was the topic of the day. Key players in the industry sold their facilities to well-heeled companies and many times stayed with the company in some professional role. At least one of the consolidators was funded by a major international insurer.

Now Allstate has purchased Sterling, the consolidator with 39 shops in seven states. Many of these are in various metropolitan areas of these states. The Automotive Service Association (ASA) has received many inquiries from members, the trade press and business publications regarding the acquisition.

Most of the questions are the same. How will this impact the industry? On its face, you have 39 facilities in a universe of approximately 50,000 shops nationwide. This will have minimal nationwide impact. If you review the concentration areas of these 39 shops, it could change the dynamics of the local marketplace.

Isn’t the Allstate/Sterling deal a warning for the independent repairer? These well-heeled shops could continue to expand and eliminate independent shop market share. Depending on specific variables, those shops now involved in Allstate programs could suffer. Where does it stop? Rumors are rampant that other insurers are negotiating with consolidators even today. Finally, this is one more entity competing in an already tight employee market. Will their benefits and salaries outpace what independents are able to provide?

Is there any positive impact from the acquisition? The industry now has one more well-funded buyer in the marketplace. With an aging ownership and increasingly expensive facilities, business owners may see this as an opportunity. Will these types of purchases aid in increasing the value of repair facilities? Quite possibly. Has a standardization of procedures and escalation of competition from the consolidators raised the quality and productivity of the independent repairer? Many would argue that the critiques of independent facilities afforded by consolidators has worked to advance the rank and file in the industry. Without question, collision facilities are now reviewed by the business community with such scrutiny that the availability of equipment, training and information is at a level that any repairer has the opportunity to compete with providing a quality, efficient repair.

Finally, these new members of the collision industry could provide more employment opportunities for those that desire collision repair as a vocation.

Surely this association and others will scrutinize this transaction to a great degree, but one must note that we function in a free market system. By their definition, collision repairers are independent and enjoy the fruits of a competitive marketplace. This automatically creates hesitation in criticizing the Allstate purchase. But it is imperative that we as independents compete on a level playing field. Is this playing field level?

One can assume that Allstate has studied with fervor the steering statutes of those states with Sterling facilities. Do these states prohibit direct repair facilities? As a whole, no. One of the states does have restraints on aggressive DRPs, but will still allow programs or lists. Clearly the laws in these states vary. It is our responsibility to review the adequacy of these regulations to protect the independent repairer and to assure their enforcement. But the object is not to prohibit a free marketplace, only to ensure that the playing field is level. Several of these states have little protection against aggressive DRPs. One of the states will allow almost any type of program. So a hurried response that “they can’t do this” would be inappropriate. Yes they can.

ASA has summarized state direct repair laws and has this report available through its national headquarters or its Web site (www.asashop.org). There has never been a greater moment for repairers to unite behind a common effort to protect the free marketplace. This is one more validation of the need for the free association of individual businesses toward a shared good.

Our policy has historically focused on the right of the consumer to choose where a vehicle is repaired. Does this limit consumer choice? Are these state laws sufficient to protect the consumer? These questions will be answered in months to come.

ASA will continue to monitor the industry and work to ensure a level playing field that places consumer choice first.