I'm considering going into agency with State Farm. I like the brand awareness, but from my research, I'm learning that the company is looking at consolidating all the contracts into one sometime in the near future. I believe this will create a chaotic situation? Also, it appears the turnover of newer agents is as high as its ever been. Comments pro or con would be appreciated, as I don't won't to make a $100,000 mistake in the costs to start the agency.
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I wouldn’t count the State Farm agent out yet probably the only thing holding the company together right now. Our claims and underwritings operations are over weighted with to many long term career high payroll and unadapatble associates.
Once Pension Freeze goes into effect they will role by the end of the year. We need newer younger associates that know how to handle a claim and underwrite a policy. Wait underwrite a policy that going to be automated by next year. 100 billion strong still the best deal in town just trimming the fat which should have been done 5 to 10 years ago.
20 years ago it would have been a no brainer but today no way. I have been a State Farm customer since I was 16 and a State Farm employee since I was 22 and I am 52 years old. My agent never calls me at all and even tried switching agents and the other agents all tried to talk me out of it. Agency is worthless in my opinion and now as obsolete as a newspaper. In my opinion you would be investing in shares of the titanic.
Claims and underwriting are completely disfunctional under our new model. You will be selling a promise that we are not capable of delivering—more customers leaving than signing up. Employee morale across the board is beyond terrible...everyone hates coming to work now. Toxic culture.
Agency should have been dead 10 years ago. Not a good choice if you ask me. Kind of like saying you got an awesome deal on a Sears franchise if you ask me.
Run away. Better yet, talk to a number of new.agents and then decide if this is for you. Pick a city or a few towns a couple of hours away from you so you won't be talking to your competition. I still think running away is your best option, but I could be wrong.
Actually your timing could be perfect. The new contract will cause an estimated 20%-25% of current agent’s to retire. That will provide a lot of openings. Becoming an aspirant soon would make your timing ideal. The new contract is nothing to fear it is just much more heavily weighted on new production rather than service compensation. Hope it work out for you.
It might work out. But many if not most areas within SF are toxic.