How To Get The Perfect Insurance Company Regarding Allstate Franchise?

1. Allstate Franchise: What is the impact of the recent layoff?

2. Quick overview, • Due to the pandemic, the world economy is shrinking and, insurance is no exception • Allstate franchise laying off the agents has shaken the insurance industry • Like other agencies, Allstate franchise is also a profit-minded organization looking to cut down on operational costs • Agents need to be very smart at this point of time

3. Impact of the layoff, • The layoff had a massive impact on the agents • After the layoff, Allstate reduced the commission rate for agents with –23% on a new commission and –10% on renewals • Cheap premiums, fast binding but extremely difficult claim process and very impersonal service model approach of Allstate resulted the kind of massive layoff we are seeing right now

4. Furthermore, • Independent insurance agencies were more favored than their captive counterparts • Now, even the direct model is more appealing to the industry leaders • Hence, they cut 8% of their workforce to implement it

5. What is the best alternative for agents now? • It's high time agents look for better alternatives • A tech driven insurance brokerage called Covered by SAGE offers the best economics in the market today • Agents can get access to over 7 leading carriers and MGA’s in the industry • Agents can explore that option and get rid of the problems they’re facing right now

6. Key takeaways • It was crystal clear that changing customer models was forcing insurance to shift out of the traditional model of operation and adapt to the times and needs of customer • It's just Allstate for now but tomorrow even bigger names like State Farm and Farmers might result to be the same • Independent insurance agencies were more favored than their captive counterparts