Thread regarding State Farm Insurance layoffs

38 year agent and still worried about getting your agency back filled? What a tool, thats TICA mindset dude. My guess is you are indeed a legend- in your own mind. I’m bet the other 37 agents sit around having beers on Friday night laughing their asses off at you. What, you didn’t get the invite?

afky - Those 15 retiring agents will turn into 15 plus new ones. That model isn't changing. They like signs on buildings. You're going to become one disappointed person when you realize that you kept plowing money into a venture that was on the down slope, because you kept believing your SL. Here's a tip, look on your commissions statements at your best year ever in FSs, and imagine operating your book with that being most (eventually ALL) of your gross income. Now, imagine when the political winds blow in the opposite direction and someone in government realizes that many people selling investment services might lack the skill and focus needed to protect the consumer. They roll out stricter laws. You think the company won't shut it down again? Are you going to sell enough car loans, mortgages, pet insurance, BOPs, and life policies to make your nut? The agent of the future will be building habitat houses and running the face painting booth at the city festival. The income will be modest, but they will remain great ambassadors for the company. The company grows while they drastically lower the expense of the most outdated legacy system. Just because the first step might be a reduction in renewals, it won't take long before the company sells and services all the policies directly. You seem pretty haughty towards your fellow agents. I hope they buy you a beer when the light goes on for you. Your ego and optimism are precious.

Why would you care and why would it make your job difficult if the agent down the block chooses to run his agency different than you, why don’t you dip your napkin in some of that red Kool-Aid they have you drinking and wash some of the brown off the end of your nose .

Really, 38 years and that’s the best you got? Most people only have to work here for 38 days to figure out that you will still own the service load for those clients and will be responsible for fixing all the mistakes and screw ups by the service center.What makes you think SF would backfill anyone instead of pulling all the policies inside and servicing them for zero comp payment? What other products we got left across cell? Pet insurance? You might be better off riding into the sunset as obviously you’re getting a little senile in your old age.

I’m rather excited about the change. It makes my job very difficult when I have non producing agents around me that should retire drawing auto and fire comp, their customers have no access to the other things we do.

So here it is, the change comes, I have 38 agents in my sales area. 15 retire. StateFarm backfills the remainder of the agencies that are busting their a-- in all lines with those households. I double my agency size and send all service to a call center. I’m making a semilar net income and all my customers are getting the benefit of all products. Seems clear to me. The only part that has to be worked out is the level of service provide by the call center. Currently sub par. But if I know SF like I think I have for 38 years, they’ll figure it out in 5 years or so. That will be trigger time.

Why does this say that they have communicated this to their over 19,000 agents? I’m an agent and haven’t heard a peep?

Pay no attention to the internals who by and large are p-ss-d because the work environment has turned to c-ap for them. They seem to think agency is the problem with the company instead of the reality that we agents are basically keeping the company afloat despite many challenges not created by us.

The online business is horrible. Single auto, or stand alone renters policy. Minimum required limits, and lapses at a very high rate before first renewal. Still gets assigned to an agent who gets 3% but spends 4.5% to have staff following up for necessary signatures to no avail. That’s no way to make money. Not for the company or the agent.

State Farm agents now employ more people than State Farm does to help our customers.

You people do realize that most competitors still sell through Independent agents and pay much higher commissions and renewals than State Farm? You’re delusional if you think today’s SF Agent is the biggest drain on the financial picture.

Promote from within.

Good luck our biggest expense is agents and biggest problems. I would look to the 3 year window with a renewal comp reduction. How many travel agents are in your town 99% done online. Glad you are prepared most aren’t. Most markets have seen a large increase in new agent with SL’s spinning a bright large income future,but the three realty none are making it here in California, I too would be prepared it’s a matter of time under the new tops. Most new agents need to add luck to there mission statement there going to need it.

Policyholder center taking over servicing, yea right. These fkers don’t know

The meaning of the word service and could care less.

Luck is not an imput you want to use in a business plan. The writing has been on the wall for a while, most likely 4-5 years at the earliest to implement if then. if I happened tomorrow I would be ready, in the meantime I will keep pulling on that tit. In most markets you could not sell enough to make it work even at a higher new business comp rate. The agents contract works because you build a book and those renewals grow as the book grows over time, investing in your operation and team. Agency for the most part is a get rich slow process with exceptions of course. Never fear change, but be prepared for it.

Good Luck going to be less agents with larger books with 95% sales oriented, zero service comp as we know it today less coasting. Policyholder center taking over service avenue.Mayn’t be what you were planning.

Agent aspirant program has been around for years, nothing new here, most of them are agent team members who would not be crazy enough to bite on a contract that pays less than it takes to keep an office open. You will either have agents clustering going forward with much smaller teams and overhead or a lot less agents going forward. Hi road could work for the segment of customers that want simple, think milenials, it would seem to be a threat to Geico/Progressive type of model. Web site says they are rolling out homeowners insurance this year. I wonder how the loss ratios are trending here.

Hi Road is the insurance if more agent’s than projected reject the new contract. Agent Aspirant program is critical as well.

Schedule of payments is outside the contract pretty much can change anytime, i remember a longtime ago at a meeting with Ed its was communicated as long as market condition permit. I’m thinking there is going to be a buyout in conjunction with transition like in 97.

It will be interesting for sure, as an agent do you sign a contract like that? has all the makings of a class action. On another note google Hiroad insurance and take a look at what we are experimenting with our east in a state we have no agents in, this is actually an interesting concept.

We recently had a meeting and were told to expect renewal comp changing in the next 3-5 years, but higher first year comp, no comments on weather they are prepared for this type of transition since claims underwriting and basically everything else is falling apart as I write this comment. I hope all the agents invested the AIPP and with the fall off of business the AA3/4 agents are now seeing large income Dropping rapidly. It’s been a great career I have just two years left before 65, but feel for the new agent interns just starting going to be a complete different animal.

SF will watch 18,000 agents become independent and see the real value of the agency force.

Wait until all of the former Enterprise and Foot Locker reps pass their Series 65 and start grabbing at the investment market. What could go wrong? It’s about relationships right? You trust me with your life’s savings even if I don’t have any real expertise, and my main gig is running a P&C business? What a mess.

6xpz- they measure that because they spent the money for the leads. They’ve way overinvested in c-appy data to “drive customers to agents offices.” Those leads s---. All agents know it. Most of us are smart enough not to buy them. Why on earth would you pay for the phonebook entry that they sell to 5 other agents. It’s like dozens of other programs with the company. Some low level executive has staked their claim on a dumb idea, and it is going to work whether it does or not.

Also, the last time I looked we were in the insurance business dumb--s. Business of change? Give me a frikkin break.

We are in the business of change!

The truth of the last decade has been that we are in the business of making reckless, half-assed changes, failing as a result, changing things back to the way they were without acknowledging our failures, and digging our own graves.

For example, the most recent Systems re-org was simply an implicit acknowledgement that the CDE reorganization that preceded it was a colossal failure. This most recent restructuring will fail also, for reasons too numerous to catalog here.

The same thing is happening in Claims, and companywide. Our executives literally haven't a clue what they are doing.

Bank, Long Term Care policies, Mutual Funds, Variable Products, Medical Sup Policies, Phonex Life Partnership, Assurant health Insurance, plus others I am missing. We have all rode the change as agents and now with the exception of Bank ( for now at least) most are gone. We lost our focus on what built this company, a competitive core of auto,home and life products. Maybe one of the “great leaders” you hold out as examples could pull their head out of their a-- and fix that problem instead of rolling out pet insurance as the latest and greatest piece of c-ap for us to sell. JFC.

Wow, sorry folks but I have to really point out the extreme lack of vision many of you are expressing here. We are no longer in the business of doing claims, underwriting sales or whatever else we do. We are in the business of change! We have to except that if we don’t change we will in fact die. Change is hard and there are growing pains. We have to turn into an Integrated Technology (IT) company With our agents being the face of that company. We are still a few years away from implementation. Our expenses are still a good 6 to 10% higher than the competition. Being a mutual helps that bottom line but we have no option. We must change. Now I have no idea if the contract presented in this post is BS are not time will tell. But the Days when a folksy friendly CEO ran a company this big is gone. My friends we need sharp financial oriented AND people oriented SHARKS as CEOs and vice presidents. And I think we are getting there! Tipsword gets bashed for not being friendly enough. To hell with that - that’s not what he is there for. Agents go to convention get your picture taken with him and put it on your wall until all your customers is your best buddy. Because he is. Take a good look at my Tipsord, Harbert & Smith. These guys look like sh-- compared to four years ago. They are traveling the country working their brains out and 110% dedicated to this company. Without hesitation! Get on the train,Have faith in your leadership and quit whining.

Saw an interesting note from our area VPA, one of the most watched metrics in our zone is now total marketing pieces mailed from all agents in the zone compared to Geico and Progressive, no kidding, why not track total billboards or wrapped vehicles. I get the correalation but is this the best metric we fricking have now?

Bring it on either why new contract or buyout I’m good with either

A buyout is the dream. But more likely they just say “Here’s the new contract. See ya.”

The original post might be right, but who knows? They also might just begin to transition by flushing out the old contract agents with a buyout, especially the 97 agents with no more AIPPs. Maybe give the other 97 agents a locked in PV of future AIPP payments. They could cut the agency force in half pretty amicably if they offered a long enough transition (3 years or so) ending in a lump sum payment to hit the bricks. The buyouts might be $5-10B well spent. They could essentially double the size of the remaining agents with a reduced servicing commission and go full steam ahead with this $hi$hw. Something's coming either way.

Agents better get there finances in ordee

I’m calling my agent too we have a life policy on our bill

I do remember that the company was own by the policyholders if they really new what was going on in Bloomington its would be another story, Everyone always had the most trust for the RUST Family, after THAT I’m not sure how to characterize the company we have a surplus note for florida for about 500 million and then we sponsor stadiums for 250 million each unless I failed math but that would lower rates for policyholders that own the company. Someone needs a check in on basic math Ed SR would say what the F is going on.

I remember that as well be your customers best friend, I sure made alot of great of friends who are customers I would never sell them something they didn’t want to purchase Ed sr would have told us if we were doing that it is grounds for termination of your agency contract agreement. I’m proud to say i have never charted off course in selling something someone didn’t have a need for. I have also heard horror stories with some of the new agents, I feel for them the pressure has to be overwhelming in todays environment. I remember sitting in my office when i started and had my $242 due for rent and I had nobody in front of me. It was a scary time for me but I decided to get as many people in front of me a possible it work. I hope the new guys figure that out. I certainly don’t want to be like that Wells Fargo jack trap.

I’m calling my agent too, I had to buy and additional policy as well.

There are a lot of good agents out there, use your best judgement our company isn’t going in the right direction I have been with SF for over 40 years and this is upsetting to me to here and see these responses, I’m going to call the two new agents in my market area and ask if they are doing anything from what I have notice on this computer website. It’s not what is normal or regular business. It’s hard for everyone with the future i feel for my old fiends in our regional office they were family and taught me ourhow to do our business correctly. I to am sad to see how we have turn downward in service and our regional operations response to basically anything. I guess its the future but the company that has the best interests of the policyholder in the future will succeed. The company that just thinks they are great by there balance sheets will lose in the long run. when you get to the end it doesn’t matter anyway I don’t think they have a hat you wear on our successful you are in finances. It’s been a a great ride at SF I remember Don Rood saying always be your customer best friend

I too got one of those auto emergency policies I’m calling Monday i will be interested in what they have to say

Switch now I also got taken had to buy a life policy to meet the monthly billing minimum, found out after the fact there is no minimum of course our agent never made the sales quota requirements and we got transferred to another office. We asked them if we met the minimum and they were confused and said there wasn’t a minimum for monthly at what we were paying. I left the office and i felt sick. It’s sad to see State Farm drop so far we were always the top company

Wow thats crazy my agent office sold one of those hospital emergency room policies to me too, I’m calling and cancelling that to. I’m in Northeast i didn’t feel comfortable with that additional policiy on my monthly statement either. I never thought about it I just thought it was what I needed. I am just so discouraged with what’s happening. :(

My agent retired great agent was like family, my new agent another story he keep trying to sell us a Auto Hospital/Emergency Indemity policy to cover additional medical from an auto accident, I told him we already had major medical and that we weren’t interested in that but he and his office person insisted that we needed it. We took it out unfourtunately found out that we had been taken, we didn’t feel comfortable and had to switch agents and when he called asking why we left we decided just decided not to return call. I agree with previous post it sounds like we are going down the Wells Fargo additional product delima. I have been with State Farm for 21 years, I can’t imagine the people that don’t know what is happening in those newer offices. It’s a shame my old State Farm agent had so

much respect in our community, my parents had him since the 50’s. I’m not sure what training the newer agent have to take but they need to review the process. Good Luck to everyone a lot of friends and Faily at State Farm.

My new agent told my daugther that when she went on her own policy after graduating from State that she needed two policies to go monthly. I check since I work for the Farm and that wasn’t correct!

I’m not sure why he wanted her to buy a $20 dollar a month life policy. She was so upset she switch to another carrier. I transferred my policies to a more establish agent. I am not sure who is training these new agents but that can’t be good for our image in the community. They have a number you can call if you don’t trust your agent.