https://www.carriermanagement.com/news/2024/03/01/259296.htm
This coupled with the 13.4 billion loss for 2022..over $27 billion……the ceo needs to get fired as well as the executives under him
35 replies (most recent on top)
Not defending it. But workplace hanky panky started long before State Farm and will continue long after we’re gone.
being told by a buddy, one of his female friends has been played by one of the senior leaders in State Farm. She is an employee in State Farm. I have no believe in this company.
Great company, but too much cheating/dishonest with the leadership …… not sure who should be trusted… very sad , really wish there is no messing around allowed…
Bidenomics on steroids. Just keep ja--ing up the prices for the customer so the FAT CAT agents and EXECUTIVES make more money off the backs of the working class. What will they do when there is no more working class? They wont know what to do then and they are fooling themselves to believe it cant happen. Their I phones, big money and laptops will no longer be able to feed them.
Enough of you people and your mindless agent-claim rep feud. In the grand scheme all of you are subservient to my amazing son and me. Never forget that.
@9fhb…..Agents sell what you provide. Too bad it’s a train wreck.
Agents sell a train wreck.
Let’s see now, the top 2 reasons we need agents, #1, agents sell, service and retain the clients that pay the premium to State Farm. Those premiums pay your salary. #2, See reason # 1. Any questions?
@8mlj…..the online channel and CCC sales have been horrible failures. Extremely low production with extremely high loss ratios.
The product doesn’t sell itself. Which is why agents spend so much money on marketing, advertising, and staffing.
Why do we need Agents? Let the product sell itself.....
Face it. Corporate Merica is morally broke. Its done! Stick a fork in it.
why do you keep posting over and over for work from home? you do this in other threads too. Yes its clearly the same person posting over and over. This just to bait an argument for more site interaction? Generally curious about the individual who lurks here posting in a very easy to identify format.
Over 60% (actual number is much higher) are id--ts and would be broke again in 12 months if you gave them each a million dollars.
Hey, I paid my dues and took the risk, I deserve every penny. My banker and broker love this premium boy.
@3xnd. Over 60% of the US population is living paycheck to paycheck and doesnt have over 1000.00 in savings and you have the heuvos to talk like that? You are like a lot at SF...... POMPOUS!!!
Hmmm. Employees work from home and profits tank? Need to get everyone back in the office FULL TIME. Work doesn’t get done when employees are watching Netflix.
NOPE! Never wanted to be a PREMIUM BOY!
Hmmm, guessing you did not make it thru the selection process?
@3mrd agents are overpaid pencil pushers.
One of the great ironies is that when the company is doing well (losses requiring rate increases) agents get paid better. But when the company does really well (like from 2017-2021) and takes rate decreases, agents take pay cuts. Nobody else has any idea what that feels like.
Never been a better time to be an agent, annual net income up 20 plus% for second year in a row, running out of places to stack the $$$. Keep bringing the rate increases, clients don’t even call to complain any more.
Continued elevated claims severity equates to “we don’t handle claims effectively.” The Farm has imploded
@2swv…….I believe those at the top are already discussing why keeping the #1 position in P&C might not be a good idea. My career is nearly done, but those just starting out will see a time when State Farm is publicly open to relinquishing the top spot. All these “affiliations” are happening for a reason. Some will come and go, but the need to diversify is real.
if do find the whole pointing of fingers to be hilarious, no one side is perfect , Agents do make bank , agents do call claims for d-mb reasons such as policy questions something they should know however it is also true claims also sc--w claims up due to being understaffed to ridiculous levels, no the fault lies on corporate, VPs and of course the President, raising rates can only work so many times before you start to loose policies so they have to actually fix the root problem or they will become #2 fast.
170K in taxable income. Lol
@bet....speaking of BS, you're slinging quite a bit, on a topic you know nothing about.
The tax code is the same for you as for an agent. We just make our living in very different ways.
There is no agent "tax writeoff" for business expenses. It's a simple matter of what constitutes income. I might make, say, $400k in commissions, but I spend $230k to run the business. So my net income is $170k. That's what I pay tax on. The "special tax treatment" is that as a self employed person, I get to pay BOTH the employee and employer taxes. I also get to file both personal and business tax returns. Quite the perk, huh?
The tax code also allows you to deduct unreimbursed business expenses....you just don't have any.
I was an Auto Claim Rep for a decade. Agency is much harder and much riskier. But I find it more rewarding to figure things out and do something about it than to complain about those who do.
Lets offset the BS. Look at what those gamer agents get to do with those expenses and taxes. Look at what they can write off on taxes whereas operations works twice as hard and doesnt get the percs nor the tax benefits. Funny how silver spoon sn-t nosed brats cry poor by only telling only what they want to you to hear. Typical sales BS and blow hards.
@pdo. True. But agents also took pay cuts due to rate decreases for 4-5 years in a row before COVID. Nobody else at State Farm ever faces that.
About 8-10% of premium goes to agents. With that 8-10% agents employ more people to help the customers than State Farm itself does. With that 8-10% they do the local marketing and advertising that actually brings customers in the door. With that 8-10% they maintain actual, physical locations that customers come to for help with all the service State Farm is failing miserably to provide. After paying for all of that, agents have some pay to take home. (But likely not for the first few years).
Agency is the best, most efficient use of any expenses. For 8-10% of premium, State Farm gets to simply walk away from a HUGE amount of expense and responsibility.
When your net underwriting losses for 2 yrs in a row ($27 billion) are almost 20% of your net worth ($150 billion)…there is a major problem…a runaway train….and it is gonna get worse
Underwriting losses due to due to continued elevated claims severity and significant catastrophe activity, for both the auto and homeowners insurance companies.
No one deserves to be fired because of excessive underwriting losses when you consider the causes.
The total underwriting losses for 2023 was historic, no doubt, but Q4 losses showed dramatic improvement over quarters 1-3 due primarily to rate increases.
Rate increases will continue in 2024, therefore, we can expect to see improvement in underwriting losses as well.
Agents are long overdue for change. They are overpaid.
The agents are making alot of money since the premiums are increased substantially. I would bet the number 1 expense the company has is the commissions they pay the agents. Wouldnt surprise me if the company try’s to change the way commissions are paid.
The worst thing they did was move to 4 hubs and close all the local offices with the business model plan that failed executive Robert Yi put in place under the guidance of the bean counting ceo……the combined losses are only sustainable because they are a mutual company.