Inside NAPAA

Tom Wilson's plan to topple State Farm in ten years is another "pie in the sky" plan that has little chance of succeeding. First, State Farm is miles ahead of Allstate in policy count and premium volume. Second, they are better managed than Allstate, especially when it comes to dealing with agents. At Allstate there is a profound disdain for agents that begins at the very top of the management hierarchy and extends all the way down to the FSL level. This smugness and lack of respect for agents is where the company will falter in its effort to take over first place in the property and casualty business.

Unlike State Farm, which reveres the tenure and experience of its agency force, Allstate has demonstrated time and again that it cares little about such qualities, preferring to rely solely on sales results. This approach is very short-sighted because, as we know, the agent/customer relationship is not all about selling. To the customer it's about the relationship, the trust and knowing that their agent will always be there for them. Consequently, customers place a high value on agent tenure and experience. They want to be able to tell their kids that "Joe Smith is the best agent in town and he'll take good care of you when the time comes." What customers don't want is uncertainty or being assigned to a new agent every year or two.