All signs are pointing to Allstate dropping auto market share again. Rates, Claims and customer service are pathetic.
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This will only continue. The low caliber of employees we are now hiring along w the dismal training will result in even worse customer service and retention. #disconnect
Wilson does not care about market share or growth. He is paid based on shareholder value. If he had any intentions to grow, he would have not decimated claims with all the layoffs. Nat Gen was more about creating a new independent channel distribution infrastructure. Moreover, Nat Gen was a way to utilize its predictive pricing model and return shareholder value by rate increases in the Nat Gen book.
Things will be interesting for the q3 earnings report. Loss ratios will be back to normal. However, there is a great deal more of nonstandard business on the books. Nonstandard does have greater claims frequency. It will be interesting to see how Allstate’s reinsurance program managed the uptick in weather related cats.
The Allstate agent channel has been decimated by the revenue shift out of the agency. The agents are demoralized and preparing for the further revenue shifts that will take place in 2022. Agents are leaving in droves and being replaced by low quality replacements that work in their pajamas from home. 30% of new business is being written online and direct. Allstate track record in this arena is dismal.
The $5billion stock repurchase program has propped up the stock price of Allstate. Fortunes gained or lost will be revealed in early November.
Allstate had to buy market share to show share holders growth… What a joke. Good luck with the Safe Auto purchase, Allstate will try the non standard, high risk market and soon will see the massive claim volume from that market…..