Thread regarding State Farm Insurance layoffs

Predictions do come true,as an active 56 year agent,2 years retired I can tell you that many years ago super agencies were predicted. One agent with very large books and a large staff would be the future of State Farm . Unfortunate for the many young agents, who have made and are going to make sacrifices hoping for a better future! I don't remember if it was agent speak, NASFA prediction or the company but it was spoken of and it seems its here! Good Luck to all

‪State Farm can’t make it on 90% & 92% of the premiums agents bring in…they need 92% & 94% of the premiums agents write. Then they want agents to pay all their own expenses, payroll, & healthcare from that. Sound like an agent problem or company problem?
‬Taking agent’s money & business profits they’ve poured their lives into for what? Corp greed by definition.

Weird. Behind schedule?

Ten year agent here. I have traveled every year, made almost all incentives, and have frankly worked incredibly hard. The reality is that SMVC and scorecard changes the last three years have been brutal for many agents. I keep hearing on this thread “agents need to put their big boy pants on.” I have to wonder if perhaps you are on an old contract and not understanding of the demanding, and often unrealistic expectations of newer agents.

Looks like everyone going to be on same contract going forward. Announcement coming changes implemented by 2022. Hope they have a transition like 97.

Something is coming!

Yeah they putting big cash away and hanging all us newbies out to dry. All the old timers putting big cash away waiting on the announcement 15 years since new last new deal.
I’m already doing a side job on this jig. And my SL guy is drinking Pina Coladas in Maui see him once every six months. Wow

$110B (plus) in the coffers, and growing. And this outfit asks agents to spend more of their own money, and hire more people to keep TC #1. Oh by the way, do it with systems that just plain don’t work much of the time. They’re swingin’ big brass ones atCorporate.

We have three in my market closing up shop. The one gal across town said she’s 125K in debt after four years. I ask my sales leader about it he said gotta loose some. Been an agent for 23 years it made me sick to my stomach. And last week he sent an e-mail said he’s heading to Hawaii to call ASR if you need help. Are they really getting paid????
WTF

Becoming an 005 Agent is one of the worst "business decisions", "investment decisions", "career decisions" anyone can make. That will continue to be the case and increasingly so. It's by design. The best way to wheen off agents it's to make it such a terrible "opportunity" no one wants to do it. Eventually, recruiting will be nearly impossible. Then, it's not states farms decision to have fewer agents. It's the career marketplace speaking... SF slowly exits agency as it sits today because people stop being dumb off to sign up for the horrible endeavor that it is.

New agents need assistance immediately
ITS A PERFECT STORM COMING

@5Fovp...similar background here, 31 yrs at the Farm and 22 as an agent. I think right now they realize just how big of a mess they’ve created. Additionally, I think they know we’d already be #3 if agents and their staff hadn’t been talking customers down off the ledge for the past 7 or 8 years. Nobody else in TC talks to customers now. Hell, they don’t even talk to the agents who talk to the customers. If they run agents off right now, they are toast. They know it, and in recent gatherings they’ve even admitted it.
Unfortunately, that probably ends the dream of my buyout.

I am a 25 year agent with another 6 years in management with SF. They've made some dumb mistakes in the past but I really don't believe they'd ever 'force' a new contract on veteran agents. Especially considering the fact that many of us already signed a new contract in our careers. What does scare me is the obvious lack of any clear direction right now with this company. They are clueless as to why we are losing market position and the answer is clearly not because of agents. The day SF moves to force agents onto a new contract or does away with agents will be the end of SF as we know it. Even they couldn't be that stupid.

@5xpyp.....Most of the comments re agent contracts seem to be from employees. The same people who are whining about losing retiree select a gift. But they seem to revel in the possibility of agents taking a 60% gross pay cut. When it finally happens, agents are a resilient and self sufficient bunch who will figure it out- maybe by taking their talents elsewhere. They already have full responsibility for their business and their retirement.

Man some people get all work up over this contract change. It is what it is who cares, looks like someone didn’t put any money away. Probably thought It was going to stay the same for ever! What a meat head.

No need to get all worked up here kids, the contract issue is taking care of itself, there are fewer and fewer aa3/4s around, another 5-10 years there will be damn few. All the co needs to do to make the aa97 and aa05 very close is to quit guaranteeing the 2% quality comp and bingo, we are almost there. Why would they want to go to war over that? They have been around close to 100 years do you really think they can’t wait 10 years for this to work itself out?

Better get your big boy pants on if you think they aren’t going to cut compensation. Everything they have been doing lately points in that direction. This had been on the cooktop stewing for a while, and I also heard sales leaders getting the plank, my poor guy from auto underwriting is to young doesn’t know anything and no experience gotta keep yourself relevant in today’s world.
Ready for the buyout!

Sales leaders getting the boot, not sure what they actually do.

Are you f’n kiddin’ me?! The last time Corporate Agency tried to get all agents on one contract, they failed. And just to make sure they had something to show for the year+ time they put tons of staff in the basement (yes, literally, the basement) to work on this, they created the sales leader program instead. Epic. Fail. So, ummmmm....yea, if you think there’s some sort of super secret master plan unfolding....there isn’t. There is no plan....no strategy....there is only Michael Tipsord who sees himself as a “bridge” to the future. And really, the only thing he’s concerned about is ensuring his family becomes the next legacy SF family. Cheers.

Pay yourself first get yourself in the position to walk at anytime. Don’t carry dead wood, no numbers unload.

Something like this is on the way. But I think we’ve had a temp reprieve because they’ve made such a horrible mess that they HAVE TO HAVE the agents to try and smooth things over with the customers.

We are number 3 in a lot of regions now. Where u been???

I would walk in a heartbeat with a decent buyout.

I think the other guy was saying the P/C comp changing in the future. If you think schedule of payment will remain at 10%-15% better gets some good boots on because its going to get deep with what they are going to throw at us. I’m hoping they give us the better of on out term pay or better yet a buy out like in 97, 10K per year of service.
Times changing I can here it now they are preparing us for the next 100 years. Better take care of the shop now.
My old RVP said he hopes all the agents put there AIPP away. Glad I’m aa3/4

Ujyo- and that would be the end of SF as you know it. The agents are the only thing keeping this Co from a death roll. FYI- I am not an agent but I do see the value they bring, they are the glue that keeps the clients happily paying above market rates. Eliminate them and within 36 months we go from #1 to #3 in the industry. By the way, the company is well aware of this fact.

Yea right, we can diversify and backfill our lost income by pushing mortgages, funds, etc. just like we did with Fortis, the old funds, LTC, pet insurance etc etc etc. We are at our core an insurance company, all the rest is nothing but a distraction, if we really wanted to be great again a competitive P/C and life portfolio is essential. We don’t really have that right now do we. Until then I would suggest controlling what you can, specifically expenses, downsize. Your office space, right size your team, watch every expense like a seasoned business owner, forget buying tons of c-appy leads, endless direct mail, billboards etc, they really are a waste of money. Find a neighborhood that you want to market to and spend some time ringing doorbells, short of a good referral program this is really the best approach. Oh yea, have a plan B, real estate is always good if done right.

There’s not going to a difference in contracts very soon why do u think they are pushing the securities and mortgage partnerships, to shore up income. It’s going be different environment going forward at every level in agency, service as we know it today will be completely different. It’s changing around us today and nobody knows it’s coming. It’s going to be really awful for unengaged agents

How can I compete with older agents making 10 to 15% and independents agent making the same. In my town of 13 insurance agencies I am getting paid the least of all 13 for my work on each policy. On top of that 35% of the people I quote are ineligible. WOW. I am working with one arm tied behind my back. Every agent I spoke with in 2003 and 2004 were on the older contracts. When I started they switched to the AA05 just after I quite my 6 figure job to be an business owner. Oh wait, I read the contract they give me and I am not really a business owner just a glorified salesman.

Something along these lines is probably in our future. This post was obviously not real, and has been officially disclaimed by SF.

But for those here who think agents are in for a surprise.....we’ll, Agency is all about preparing for whatever happens. It’s not like sitting in a cubicle and waiting for the consistent direct deposit every other Wednesday.

No way!!

This is fiction. It is poorly written, has terrible grammar and the voice of the author does not match current company notices.

OP sounds like my SL. He follows it up by telling me to sell more car loans.

Has every Agent viewed this yet? Over 17,000 views, we have to be getting close...

I never talk to my agent unless signing up. Sounds like the future of the agent is being done away with.

The longest thread ever

@jdqj my point was I get 3% on a QB policy but the extra work required costs me more than 3% in staffing. But when the policy is underwriting cancelled for lack of required documents after the first 30 days.....2.5% is deducted from my pay. Thankful to lose money for CCC foul ups? I hardly think so. It’s a little different out here where we actually pay the costs of doing the business.

The loss ratio results are both new and renewal. New is considered first 12 months, so includes one renewal. Policies that lapse would include losses but virtually no premium. Customers are more accurate than call center or agents.

Wow, lots of emotion and commotion over a bogus letter here people.i had a few thoughts to add to the mix, Re Burger and Koolaid, these two are a perfect example of the caliber of people manning our

call center, no wonder the quality written s---s. These two can’t even seem to put a coherent sentence together, I don’t think we need to worry about them replacing agents any time soon. Re JABF and the quality/loss ratio of business written in the call centers, what is the lapse/can rate on this business? The first thought that comes to my mind is it does not stay on the books long enough to have a loss. Agents will be fine, we know the potential is always there for a contract change and we will either deal with it if it is manageable or move on down the road, I doubt you will find us here complaining about the elimination of some pos select a gift program, man from the complaining you would think the company terminated there pension payments.

I knew this was coming its been a good ride, Making 15% on fire and 10% on auto and playing golf four days per week has been a great career. Hope the new guys are ready some of the locations Ive driven by look expensive, hope they didn’t sign a long term leases. Feel bad for my AFe he’s a good guy I hope they take care of them he always looks stress out. Thanks to all the operations folks we have had the best in the industry. God Bless everyone

I wonder what the agents that are living off the gross are going to do? Looks like In/Out flipping burgers maybe they could move to the French fry station! HA HA glad they are getting some now Ops been taking a beating for two years.