Here is what to expect. Of the 10,000 people SF is going to hire around half will be gone within a year. Expenses are going through the roof and growth is slowing down. Still good but never the less still going down. Geico and Progressive are using adverse selection to send cr-p business our way. Stuff they know will lose money! They've done it every single time we grow! We think it is because of Tipsy's "business model" that he "had" to prove would work. It didn't work. Claims is still an absolute disaster and U/W is not too far behind these days. Growth will start falling off rapidly when we have to start increasing rates due to all the cr-p business, cost of labor/parts increase, and the market takes its continued down turn. This exact same thing happened in the last Big Dog campaign. We had written a ton of horrible business, bought the business/lowered rates, and the market went into a sharp downturn. SF got caught with its pants down and it is going to happen again very soon. Tipsy your business model didn't work, it just setup SF for a bigger fall. Most do not realize it yet but he does and will high step out the door with his countless millions! Going to be a total sh-t show!!! You haven't seen anything yet including all the layoffs!!!!
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Another agent missing the point , his point is claims is not the same as when you handled. Inventories are double from what you handled , but I see like most agents you know everything.
- My claim inventory was well over 400 back in the 1980’s. With paper files, and constant phone calls because there was no such thing as email or texting.
It’s ALWAYS been a hard, high volume, thankless job. The choices are stay or go. Seeking pity achieves nothing.
“But please cancel the pity party. I’ve done office claims, catastrophe claims, underwriting, and agency. They’re all hard.”
Yes, they’re all hard, but it’s not the job that’s the issue, it’s the volume. Most of us are approaching 400 claims, which is a lot different than the olden days when the highest volume of claims anyone ever had at a time was 100.
Claims has always been a tough, virtually thankless job and it always will be until AI can replace people.
But please cancel the pity party. I’ve done office claims, catastrophe claims, underwriting, and agency. They’re all hard. They seldom encounter gratitude.
Claims encounters wrath at every turn and there’s little you can do. Underwriting is a bit less stressful but can feel like living in a cocoon of the detached and theoretical. Agency can be the most rewarding but is also the most difficult and frustrating. Customers and associates alike expect agents to know all things about all functions and problems at every level and every location of State Farm. We try to make sense if it all to the customer, though we have no access and extremely limited training for most of it.
They call it work for a reason. And we get paid to do it because it’s not something people would do for fun in their free time. And any one of us has the freedom to walk away and do something else.
Not a single lie detected that’s probably one of the best observations I’ve ever seen.
2xq is correct. State Farm is making business decisions, however, for all their successes, less and less people want to work for State Farm, as a lot of the pressure to do better with less falls solely on the claim handler.
So yes, they make great business and financial decision, however, its at the expense of the people who make it all possible. That is our problem and why so many complain here. The fact that the claim handler is treated like some despised spoiled child, while the company struggles to meet the demand created by unchecked growth without concern for whos going to be handling all these new claims.
Its like, I'm very happy the company is doing great, but I'm not, and its he-l working here in claims. If you don't see that as a problem then you are part of the problem. A company whos core workforce is stressed, un happy, and un satisfied is a long term disaster brewing here.
OK. Let’s try a little perspective. SF made some crazy ( and obviously not sustainable) profit due to the massive drop in claims due to COVID, combined with a really rapidly growing investment portfolio. It was never going to last and your “ clueless” execs repeatedly stated that. Many of you ignored that while lamenting that State Farm banked billions during the bo-m.
Well, that banking of short term profit has enabled State Farm to weather the sudden reversal without the huge , rapid rate increases many competitors are experiencing.
Exec and Finance were not the clueless ones. Posters here were. Now you’re using revisionist history, not even recognizing that SF’s moves achieved exactly what they were intended to do.
No you are wrong State Farm is slated to hire 10,000 people this year and almost 500 new managers...and our TM just told us in huddle we are over 7,000 to date. The SF Financial report came out and our combined ratio is 115.1% and our loss ratio was almost 78%! We had a $5 billion decrease in net worth and losing money in auto and making money in Fire. Growth is down versus this time last year. $5 billion down and that is just half way through the year!!!! Market is not getting any better and we are starting to take rate in a lot of areas! This sh-t show is coming unwound!
I don't care what any of you say. A CEO who takes a 24 MILLION DOLLAR bonus and gives his employees 4 cookies for a 100 year anniversary needs to check in. Their numbers and records aren't worth JACK if they don't support their minions, children or whatever they refer to them nowadays. IMO it's like the absent parent with all the money in the world who is not present for their child in time of need ie., inflation etc. Grow up leadership, wakeup, and smell those SF Rose's.
Hmmm OP hysterical BS vs actual facts from @1xq. This is why 90% of the comments on this site are just nonsense.
OP is a typical uninformed take on this site. Hiring 6k, not 10k. Growth is actually accelerating, not slowing down. Just hit 1.1 million auto growth through 6/17, whereas Geico and Progressive have both LOST autos for the year. Our expense ratio Is actually trending down and hit 34.7% in May, the lowest it’s ever been due to the growth and rate increases. We are still very profitable.
The only thing that is accurate is Claims Ops is still a disaster and so is the hiring - there are no standards and half will probably quit in less than a year.
@lxq Only when you learn from whence you came do you know where you are going.
This is absolutely nothing like Big Dog. That was State Farm clinging to the past, not using consumer scoring, and losing billions because of it. Now some of you think the “solution” to tech induced growth with profit…is to return to the past and ignore data in a very date driven business.
I absolutely do not enjoy this business like I once did, and will be pleased to leave in the next couple of years. But just like it is in politics, we’ll never reach our future by clinging or reverting to our past.
OP is total rubbish. No concept what was behind Big Dog and some sort of psychotic thinking regarding the future. This kind of talk has been out there for 5-6 years. It is old and boring.
It is time in our country that people who sit back, produce nothing or haven't produced to earn something face the reality they are not worth the money they are making. SF has way too many six digit employees who are the laziest and most incompetent people I know. They are the types who spend too much time in bars and on the golf course telling lies about how great they are and how they believe they got their act together when in reality it's those people who do the day in and day out work for the customer who pays for their phony life. Once SF realizes that and its philanthropic attitude changes to reality, there will always be chaos.
fake news again
They pushed out good people for people who had no work ethic……if I was MT, the consulting firm that recommended these changes, I would be asking for my money back through litigation
Yes after all the money they lost just 4-5 years ago, everyone has a short memory! Tipsy just didn't replace 17,000 people and bought the business so it didn't go under during his watch! Your business model DOES NOT work! All smoke and mirrors, nothing was fixed and everything is worse. Last time SF had the best claim's personal in the industry who bailed out Ed..sorry. At least he was a decent person. Now we have a company full of burger fliers, retail burn-outs, Wal-Mart employees, future Amazon warehouse workers and too many former soccer moms who thought they would get back into the work force to make a little money. Not to mention all the little Tipsy and PS clone bean counters and data geeks trying to tell everyone what to do with some standard deviation graph.
A little history.....
https://www.insurancethoughtleadership.com/personal-lines/time-rethink-usage-based-insurance
https://www.cleveland.com/business/2007/11/progressive_finds_itself_in_ba.html
https://www.spglobal.com/marketintelligence/en/news-insights/trending/i_5mj852hvdj6_kqfa7vua2
https://www.chicagotribune.com/news/ct-xpm-2002-03-02-0203020222-story.html
https://www.latimes.com/archives/la-xpm-2002-mar-02-fi-insure2-story.html
I agree with one exception. More than half will flee. Once they are faced with adversity in claims, they're done. Just look at current events. IMO today's college production isn't the same. Elitism is not directly correlated to work ethic. Only an opinion that I don't believe they have calculated into costs.