Allstate and its manager has elected to terminate [NAME REDACTED]’s R3001 contract and have chosen not to allow him to keep his office open for the remainder of his 90 days.   It was reported to me that a manager and 4 men with security shirts descended on his office and turned everything off and took Allstate files along with personal information owned by [NAME REDACTED].   This was done at a very vulnerable time without [NAME REDACTED]‘s permission.

Once again just as we think Allstate cannot sink lower …………………….they seem to find a way to do it.

Small wonder people are calling for a boycott of Allstate.

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.

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.

By Randy Diamond | Wednesday, July 9, 2008, 05:30 PM

The trade group for trial lawyers, the American Association for Justice, named Allstate as the worst insurance company in America in a study released today. The designation is not surprising, given the ongoing war between the insurer and trial lawyers over auto insurance accident claims.

Trial lawyers are not the only ones mad at Allstate. Florida insurance regulators temporarily suspended the company’s license to write new business in the spring after accusing the company of refusing to cooperate with a state investigation into the insurer’s business practices.

That investigation started after Allstate filed for a 40 percent property insurance rate hike last year, several months after reducing rates by 14 percent. State regulators were also not happy with Allstate dropping some 300,000 property customers in Florida in the last few years.

Allstate contends it’s a good insurance company. It says its actions are all about making sure the insurer has enough money to pay claims if there is a hurricane. Of course, Allstate is a also a public company, and it management is also under the gun to continue to bring profit to shareholders.

This blog will keep track of the situation and also share ideas and stories.