The alliance with McKinsey was the beginning of the end for this once proud corporation. After that point, the only thing that mattered was “process” that were poorly designed from the beginning. CCPR began a long 20 year sludge down the food chain with highlights being Liddys war on the agency force, numerous lawsuits for unfair claim handling and numerous state insurance departments fining Allstate for unfair practices, a slow take away of benefits and pay for customer facing employees while lining the pockets of the executive staff with millions, Wilson continuing and expanding Liddys war against employees etc.
It has been a long 20 year slog to where we are now…
Allstates time as a top carrier ended in the late 70s through 1995 where their claim service was very good. As they did to Sears, arrogant leadership which thinks that they are better than they are drove what was once a fine corporation into the ground.
All Corporations want to make money but it is not many corporations that have the hate, distrust and contempt for their own employees as Allstate currently does. They do not even try to hide it with executives referring to frontline employees by derogatory names like “grunts” and publicly stating that the need to pay and provide benefits for employees were the only things holding the company back. Well they solved that problem by moving all positions to India except for the overpaid executives and board that reside in Illinois sacrificing all customer service, customer loyalty and employee morale in the process.
This current Allstate has become hated by both customers and employees and rightfully so. Employees used to loyally say that they “bleed blue.”…now they just bleed self respect, career validation and pride in their work.
Customers visiting this site take note!
9 replies (most recent on top)
Finally a post that is accurate. CCPR was of huge benefit to employees, customers and investors. Organization was late to game on movement to Direct by decades and that will be fatal flaw. The NBM of going Direct in early 2000’s had too much dysfunctionality associated with its design and field implementation. Thanks for factual post.
The meteoric rise of both Progressive and GEICO can be traced to both Allstate and State Farm choosing to align with their captive agents vs. competing across all distribution channels. CCPR was a billion dollar advantage per external reporting, and propped up the company for 20 years. Loss cost discipline and rigor, while creating layers of processes and oversight, is critical. We screwed up our foray into Direct, and essentially ignored the Independent agent channel. Can't grow company market share when we only competed in the EA channel where about 35% of P&C premium sits. Stock has done well, but take a look at Progressive. In the last 5 years alone, PGR up 136%; ALL up 35%. Over a longer term, the missed opportunities prove costly to shareholders and employees.
Hired in 1996 as part of the CCPR generation, over 20 years prior automotive experience. In the beginning all went well, leaders left us alone, pay claims fairly, make customers happy, no micro managers watching and criticizing every estimate. Don't overpay Don't underpay was the mantra. That was also the era Allstate went public , it was not long that all attention was focused on stock prices. The downhill process had begun, soon the mantra was pay claims as poorly as possible, write halfa$$ estimates, deny as much as possible, supplements on every estimate and leadership unspoken directive was pay as little as possible and hope the customer takes the money and runs never to be seen or heard from again. What a great strategy which leads all of us to present day. A failing once great American Corporation with a reputation worth dirt. Greed, Lies, Poor Decisions, Poor Implementation, Failed Strategy, Lacluster Innovation, Falling further and further behind the competition. Who is to blame?? Does not matter anymore as recovery is not in the business plan.
@,jja+1kDvuoZG, how many of those
Processes were discontinued because they violated laws? How many agreements did Allstate make with states and how
Much in fines did they pay?
CCPR is when Geico began to
Make their leapfrog over Allstate taking number one carrier in the US…
@cce+1kDvuoZG
And here you are reading and commenting on posts and “not working.”
Hypocrisy much???
Get back to your desk inbred, Tommy needs some more stock..
CCPR processes were well designed and provided significant fast track lift in relation to competition. Outperformed all competition for years.
Just think of the work you didn’t get done because of your thousand word rant. Losers will be losers, and you are certainly one.
Sad but all true.
Louder for the folks in the back…