https://www.chicagobusiness.com/insurance/state-farm-pace-lose-car-insurance-crown
15 replies (most recent on top)
I would be ready some big changes coming in operations and especially agency. It’s going to be entire new deal going forward.
Yep-just allow an agent or their staff just look prospects in the eye and decide you get to join the SF Company or not. What could go wrong?
Redlining is wrong
Inspirational speaches won’t cure that
It’s cause they are using data with no integrity and integrations to use data to price the most vulnerable high. Rules include Credit rating. Zip codes, MVR (which is mostly wrong) and many many
More data points that make everything vanilla and a risk number. Lotsa folks and entities involved in this. Be careful of InfoSys and cloud data. Any data will be used and will hurt the mist vunerable and poor
The scoring comment is interesting. Industry analysts, not SF employees or competitors, have speculated SF was late to the table on scoring and too conservative. They point to Progressive and GEICO as being leaders and using more aggressive models that include factors like education and employment/profession. They attribute it to SF being risk adverse to litigation and unwilling to address agency outcry as modifying factors that have created a rate structure that benefits higher risk customers and is less competitive for the most attractive customers. They believe that is a recipe for at best average growth in good years and below average in bad. They believe SF’s conservative approach has allowed competitors to flourish.
Well let MT continue to run this company in this manner, State Farm will be a case study in 10 years. I like the comments in the article from the spokesperson “we have no intention of finishing second” as State Farm is losing customers And instead of focusing on cutting rates they rather focus on sheer profit, it’s a mutual insurance company not publicly traded......you can’t make this up !!!!!! I’m glad I’m gone, 2 years in August
Incompetent leadership running it to the ground.
Insurance scoring/profiling was the beginning of the end for us, as a 35 year agent I can verify we NEVER got that right. We have become the high priced low value company.
Business isn’t profitable when you are losing it at an alarming rate. Accounting 101!
Agents are dropping like crazy saying nobody is eligible ????
I've heard management say the train everyone jumped on is going 200 mph without brakes and the wall is dead ahead. It's inevitable. The competitors are providing a cheaper product with better service. Just look at a SF advertisement; then, look at a USAA advertisement. One compliments the people who provide the service (internal customer) and the external customer. In fact, it is my opinion SF ads belittles internal and external customers. Business is not profitable when your customers are a commodity.
Zuw=underiting/actuary poser.
State Farm's steadfast stubbornness in not embracing technology while remaining wed to the brick and mortar concept is an anchor around their neck.
Insurance scores profiling and redlining I’m quoting process is wrong.
Right in time for the company’s 100 year anniversary in 2022! Good job MT!!!! You wanted a smaller more agile company… You got it!