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NAPAA Responds to Allstate "Denial"
February 13, 2010, NAPAA Headquarters, Gulfport, MS
In NAPAA's opinion, the statements made by Allstate since this story broke in the Chicago Tribune are not "denials" at all, but rather attempts to camouflage the truth. NAPAA continues to believe that the company intends to eliminate thousands of agent positions through involuntary terminations and, perhaps, through some sort of forced attrition program wherein agents will be faced with new requirements and/or quotas that many simply cannot achieve or afford - causing many of them to leave in despair. It appears that these are the very agents that company spokesperson Mary Ellen Theilen was referring to when she said "Some agencies may choose not to take this journey with us..."
In addition, NAPAA has received reports from some parts of the country that management has warned agents about the impending reductions in their regions. For example, we have received more than one report from California that as many as 400 agents will be eliminated - and this is only one state out of fifty.
The company is not fooling the agency force. Most agents saw the handwriting on the wall when the company announced its new model in Canada in 2007. There the company snatched the renewal books of business away from the agents and shuttered approximately 256 locations, forcing agents into approximately 103 company offices.
Interestingly, agents here were assured by management that the Canadian model would never be imported to the U.S., but from our vantage point, it's looking more and more like the Canadian model here every day...
About National Association of Professional Allstate Agents (NAPAA)Based in Gulfport, Mississippi, NAPAA is a non-profit organization whose members are predominantly insurance agents under contract with Allstate. In addition to offering a variety of benefits and services, NAPAA further serves its members by acting on their behalf and speaking with a distinct and unfettered voice on a wide range of issues. To contact NAPAA, please visit its Website at www.napaausa.org or call (877) 269-3474.