AAggeenntt IInnffoorrmmeerr News stories of interest to Allstate Agency Owners published by the National Association of Professional Allstate Agents, Inc. This complimentary issue of Agent Informer is designed to acquaint you with our e-mail publications. The content of this newsletter is gathered from past issues DirectExpress, a weekly newsletter for NAPAA members. By becoming a NAPAA member, you will receive breaking news on a weekly basis and be eligible for many other member benefits. Please join NAPAA and support the only organization that is dedicated to advancing the interests of our Allstate agent members. To learn more about NAPAA click here.

July 10, 2014

Allstate highly credit score-reliant in writing policies, survey says

Northbrook-based insurer says practice, derided by some, is among many factors in issuing home, auto coverage June 20, 2014, By Becky Yerak, ChicagoTribune.com (Excerpt) Allstate Corp. appears to rely more on credit scores than other big insurers when quoting premiums for consumers shopping for car insurance, a WalletHub.com survey found. The personal finance website found that there is usually a 65 percent differential in the cost of car insurance premiums for a person with an excellent credit score and a person with no credit history. WalletHub.com's methodology consisted of collecting premium quotes from the websites of five of the nation's biggest insurers. It sought quotes for two hypothetical consumers; one with excellent credit and one with no credit history. Insurers' use of credit scoring has long come under attack by consumer advocates. A mystery shopping scenario at Northbrook-based Allstate revealed a 116 percent difference in premiums between a consumer with excellent credit and a consumer with no credit. State Farm relied on credit data the least, displaying a 45 percent premium fluctuation, said the personal finance site. Allstate said credit history is one of many factors it uses to determine customers' home and auto rates in most states, because it allows it "to write more insurance and reward customers less likely to incur losses with lower premiums." "Credit-based insurance scoring is an extremely powerful and accurate prediction of insured losses," spokeswoman Laura Strykowski said. "Consumers with better credit scores are less likely to incur losses than those with worse scores." Allstate needs to be able to predict risk accurately so that what each customer pays for insurance reflects its projected cost, she said. WalletHub.com also evaluated the top 10 insurers to determine how transparent each company is about the use of consumer credit information in their pricing policies. Progressive was deemed the most transparent of the 10. Allstate ranked seventh by that measure. Click here to read the full article online: http://www.chicagotribune.com/business/ct-chicago-banks-0620-biz-20140620,0,2285631.story Click here to comment: ExecutiveDirector@napaaUSA.org

http://www.capitalresources.com/

Outside Voices: Gut Still Matters On Madison Ave

June 23, 2014, By Lisa Cochrane, Blogs.WSJ.com (Excerpt)

Do you remember that party in high school that your parents just wouldn't let you attend? "But everyone's going!" was my pleading rationale. My Mom's reply? "If everyone else was jumping off a bridge, would you?"

I realized early on, not to follow the crowd because the crowd isn't always doing what's cool, or right, or smart, or even brave for that matter. I learned not to let other people make decisions for me. I learned to trust my gut.

In the insurance industry, the crowd's been talking for a while now about "Cheap rates!" And they're shouting to the tune of about a billion dollars a year.

But at Allstate we know that it's not about what you can save. It's about what you can lose if you don't have the right protection.

A couple years ago, with everyone else shouting about price, Allstate needed to take back the conversation.

We knew this would require disruption. People don't want to think about insurance. They'd much rather think about chocolate. Or coffee. Or beer. You can't force people to think about you. People need a reason to pay attention. A reason to care.

But how? Make it about them.

Rule 1: Focus on people.

To change hearts and minds, you've got to understand hearts and minds. We're talking about people here, not numbers. Use research like a walking stick, not a crutch. Data gives us norms and averages. If you use it as your sole guidepost to evaluate and choose ideas, you'll end up with normal and average advertising. Ordinary, versus extraordinary.

Rely on your own EQ. I often think about David Ogilvy's advice (but I change "wife" to mother, or husband, or daughter): "The consumer is not a moron, she is your wife." Regular people: your neighbor; the woman who sells you a coffee; the guy driving that truck next to you. What do they care about? What do they need to know?

Treat consumers with the same respect you'd want. They're at least as smart as you are.

Rule 2: Stay true to your brand's core values.

It may sound obvious, but if you want to add value to people's lives, you need to know what your value is. Your reason for being...not your reason for selling. And you have to make it true; living and breathing that purpose into everything you do. Because when people interact with your product, your company, they need to feel the same brand everywhere. Trust your gut on this - and remember 'the consumer is not a moron' - make sure they can trust you'll deliver on those core values.

When you have a big idea that's relevant to people - and you stick to your core values - you have room to create. Our core values allow freedom within a framework.

Stay in the lines and anything is possible.

Rule 3: Trust your gut.

Who would have thought a company known for taking a stand to keep people in good hands could also create a little mayhem? Launching the Mayhem advertising campaign was risky - but only as risky as not launching it.

The Mayhem campaign was a different approach than Allstate had ever used before. People love the warm reassurance of Allstate's deep-voiced spokesman Dennis Haysbert, and who was this new character? Whoa. But it was disruption we needed - to get to people - to let them know if they bought the wrong insurance "they might not be protected from mayhem...like me."

Sure, it was risky - and we might get some letters - but I knew, in my gut, that Mayhem was the right idea at the right time. I could feel it. We didn't do any copy testing or focus groups. I just asked myself, would I want to watch these ads? We weren't looking for security - it was insecurity we needed. We wanted to turn heads; we needed to turn heads. And three years later, people are still looking. And buying.

It can be scary to take a risk; but sometimes you just have to trust your gut. That's when jumping off that bridge just might be worth it.

Lisa Cochrane is senior vice president of marketing at Allstate Insurance Company.

Click here to read the full article online: http://blogs.wsj.com/cmo/2014/06/23/outside-voices-gut-still-matters-on-madison-ave/

Click here to comment: ExecutiveDirector@napaaUSA.org

Allstate Wants You: Company Recruiting Military Veterans

Looking for Virginia veterans for free job-training program June 30, 2014, PRNewswire via Marketwatch.com (Excerpt)

CHANTILLY, Va-- Allstate Insurance Company is looking for a few good military veterans for a free job training program that provides insurance and financial services experience with the potential for job placement. Allstate's Military Veteran Licensed Sales Professional Insurance Training Program is recruiting veterans who have been honorably discharged and separated from active military duty within the last four years.

The fully-funded training consists of classroom education and hands-on experience over a four-week period. Candidates receive company-specific sales training and can earn their state insurance licenses. While there are currently many job openings for licensed sales professionals at Allstate agencies, candidates are not required to commit to a job with an Allstate agency.

"People find it hard to believe we are providing this free and unique opportunity without a requirement that the candidate commit to Allstate when the training is done," said Bob Becker, Field Senior Vice President of Allstate, Capital Region. "While we would love for the participants to be part of the Allstate family, what is most important to us is honoring America's heroes. Our military veterans have given their time to protect us and this country. This is Allstate's way of providing them with an opportunity for job training and potential employment after their military service has ended."

The job training program for veterans with Virginia residency is being held August 1 - 29, 2014, in Charlotte, NC. Allstate covers travel to Charlotte, transportation to and from the training site, 30 days of lodging, meals and a salary stipend of $350 a week. Applications for Virginia veterans are being accepted now and will close when the class is full.

"I am very proud to have given part of my life to my country," said Alfonso Padillo, an Allstate agency owner and U.S. Army veteran whose son, Eduardo, is also a veteran and an agency owner . "If you are used to being in the military you already have the mentality that you are helping people. As an agency owner I get to help people with their insurance. Coming into this line of work is a natural thing for veterans."

The job training program is built to prepare veterans for a licensed sales professional position.

Candidates who successfully complete the course and pass insurance licensing exams may be offered a position by an Allstate exclusive agency owner. Licensed sales professionals are entry-level employees of the agency and not of Allstate Insurance Company or its affiliates.

Licensed agency staff members support Allstate agency owners and help protect people from life's uncertainties. They sell insurance, service customers and build strong relationships within the community. The ideal candidate cares about protecting people, is disciplined, dependable, goal-oriented and trustworthy.

"Allstate is more than an insurance company," said Becker. "It is a national network of small businesses and a team of agency owners in communities across the country. Together with their agents, licensed sales professionals are changing the way consumers think about insurance and providing insurance solutions to current customers."

Click here to read the full article online: http://www.marketwatch.com/story

Click here to comment: ExecutiveDirector@napaaUSA.org

http://www.TWFGAgentSolutions.com

Beating the Odds: 7 Tips for Maximizing Your New Producer's Chances for Success

Some estimates claim that only 5% of new producers will survive in the business. Here's how to help beat the odds. June 20, 2014, By Kenneth L. Fields,CIC,CPCU, PropertyCasualty360.com (Excerpt)

New producers want to succeed quickly and do what is right. My business partner and I have provided weekly sales coaching to more than 1,600 new producers for at least 12 months each, and we maintained detailed records of their prospecting and selling activities.

Effective training and sales management can help increase their odds for success. Here are some suggestions based on what we've learned from our experiences over the past 18 years.

New producers need technical skills. Insurance great John Savage, founder of one of the 100 largest insurance and financial services agencies in the U.S., used to say his technical skills were worth only about 5% of his success, and that his people skills were the other 95%. But when questioned further he would say, "The catch is you have to have 100% of the 5%." John would go on to explain, "This is a business where we are paid for what we do, not for what we know." The point is we are in a business where the need for technical skills is a given, a basic requirement.

New producers need to know how to sell. Selling is not quoting, and e-mailing a quote to a prospect is not making a sales presentation. We know more than 90% of commercial accounts will renew with the incumbent agent. Allowing a new producer to become a quoting machine just creates more work for both the agency staff and carrier underwriters with little chance of closing the account. Knowing how to sell includes knowing how to identify prospects that are likely to buy, this year.

New producers need a sales system. Have you ever noticed the signs behind the counter of a McDonald's restaurant meant for the employees? Every activity required to run the restaurant is illustrated with easy-to-understand directions and illustrations. The combinations of burgers and fries that can be put into a bag, for example, are pictured on a poster so that even a brand-new employee knows exactly what to do. New producers need to understand just as clearly the specific prospecting activities that must be done every day to be successful. Nothing should be left to chance.

New producers need to know how to prospect. New producers who are fortunate enough to have a large network of friends and business associates may be disappointed to find they don't make many sales to those folks early in their career. It could be the attrition rate among new producers is no secret, even among those outside the business. Friends and associates may wait to see if the new producer is going to survive. Most new producers are going to need hundreds of prospects to drive sales during their first few years in the business. Some sales consultants seem to think cold calling is old-fashioned and ineffective, but what option does a brand-new producer have but to learn how to cold call?

New producers need to get out of the office-fast! It's been suggested that a habit, good or bad, can be established in as little as 21 days. Launching a new producer by allowing him or her to hang around the office all day, every day, for the first few weeks or months is a very bad idea.

It establishes a bad work habit that may be hard to break. On the other hand, getting that new producer out of the office on the first day sets expectations that business hours are selling hours. Administrative work should be done before the agency opens, or after it closes, not during prime selling time.

New producers need close supervision. "Freedom" is the most cited reason new producers are attracted to the insurance business. Less than two years after starting their insurance sales career, about two-thirds of them fail because they can't handle the freedom that comes with the business. New producers have to be shown what to do, how to do it, and when to do it. This can't be done from a distance, so the sales trainer needs to get up close and personal. There is no substitute for making joint sales calls or sitting with the new producer during prospecting phone calls. Daily supervision is critical during the first several weeks. The reins should be loosened a little at a time until the new producer has established solid work habits and demonstrated success.

New producers need lots of encouragement. Breaking into the insurance business is tough.

New producers get discouraged easily because the business is full of rejection - from prospects, agency staff, even the producer's family members. It can also feel like rejection if the sales trainer or manager doesn't take an active role in developing the new producer. The trainer should be the new producer's top cheerleader.

Click here to read the full article online: http://www.propertycasualty360.com

www.wrightbeamer.com

Local Allstate agent honored

June 17, 2014, DailySunNews.com

Sunnyside, WA-- Casey Huber of Sunnyside was honored, along with 107 other business owners in Washington State, with Allstate's Premier Agency Award.

This honor only goes to agents who have outstanding customer service and involvement in their respective communities.

Huber has lived in Sunnyside for 40 years with his wife, Danielle, and three children.

"I know many local families," he said. "My knowledge and understanding of the people in this community help me provide over 4,000 customers with an outstanding level of service."

Huber's office, located at 706 E. Edison Ave., is open Monday through Friday, 8 a.m. to 5 p.m.

Coming Soon: Exclusivefocus Summer 2014

INSIDE THIS ISSUE: LSPs and your Allstate Agency Allstate Agency Owner Goes “Wayback” to Decide His Future Why Every Agency Needs an Employee Handbook Give Your Clients a Little Something Extra These articles, and more, are coming soon in the next issue of Exclusivefocus.

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It's worth boning up on homeowner insurance

June 30, 2014, Jeff Gelles, Inquirer Columnist, Philly.com (Excerpt)

Mention the word insurance, even to people who pay attention to other consumer topics, and you're likely to draw yawns.

Trust me on that - it's just the nature of the beast. After more than a dozen years of writing about everything from airfares to computer zombies, I've learned what stirs reader interest and what makes readers turn away.

One reason is that you're likely to misperceive insurance as something intangible - a generic sense of protection against an awful but unlikely event. What you're really buying is a very specific contract whose value, thankfully, you may never recognize. The trouble is, if you ever do, it will be too late to make a different choice.

To help guide you toward potential distinctions among policies, I asked two legal experts to flag key language in my own policy from Allstate. I also got an update on a perennial topic - call it "games insurers play" - from someone whose job is going up against them: Bill Underkoffler, of Bensalem's Metro Public Adjustment.

Mold is a worry facing many homeowners nowadays, and my policy isn't alone in applying new limitations. It not only excludes primary coverage for mold itself. In a separate "policy endorsement" - insurance-speak for a change in terms - Allstate sets a $5,000 cap for remediation of mold, fungus, and rot, even if caused by an event, such as a burst pipe, that the policy covers.

What other water-related claims might leave me marooned, beyond the catastrophes for which I know I need federal flood insurance? Rutgers University's Jay M. Feinman points me to Allstate's exclusions for damage caused by an overflowing sump pump, a leak in a water-supply line, or a landslide or sinkhole.

Since I own an older home, Feinman suggests attention to another section of my policy, on repairs governed by building codes that have changed over the years. My policy says Allstate is willing to pay an extra 10 percent to cover such changes. Feinman warns that might not be enough to cover the increased cost.

Feinman also warned me of a potentially tricky limit Allstate and other insurers impose on replacement cost coverage - an issue on which the group; United Policyholders has weighed in to support consumers in litigation.

Say my roof was so damaged by a storm that it needs replacing, and my policy ostensibly covers the whole cost. The trick is that Allstate will first pay only "actual cash value" - say, half the replacement cost if it's depreciated for half of its expected life. To get the difference, the policy says I have to finish repairs within 180 days, covering the up-front cost myself.

"For a total loss of a house, this is too short," Feinman warns.

When consumers or businesses have problems with claims, many turn to a public adjuster such as Underkoffler. So I called him last week to get his take on today's most worrisome policy trends.

He says the biggest pitfall he's seen lately is the spread of percentage-based deductibles, often imposed for certain kinds of damage, such as windstorms.

"This is the new industry thing to eliminate small claims," Underkoffler says. "The trick is that the percentage is not of the loss, it's of the amount of the coverage on your policy."

Insurers don't see tricks in setting a percentage deductible. Nor do those who oversee them.

Mark Lersch, who runs the Property and Casualty Bureau at the Pennsylvania Department of Insurance, says this is an option that can lower premiums and, as such, reflects a healthy market.

"There's no pitfall in that," Lersch says. "They're giving the consumer different choices."

That may be for fully informed consumers. But Underkoffler says some seem blindsided when they realize they've got a 5 percent wind deductible and damage to a roof, siding, walls, and floors.

"Now you've got $50,000 worth of damage on a $300,000 home, and you've got a $15,000 deductible," he says. "People are just not banking on this - it's putting them in real jeopardy."

That's just what insurance is supposed to protect you from, of course - which is why it's so important to pay close attention now. Even when you'd rather not.

Click here to read the full article online: http://articles.philly.com

The Allstate Stock Rating Reaffirmed by Zacks (ALL)

June 30th, 2014,WatchlistNews.com (Excerpt) Zacks reaffirmed their neutral rating on shares of Allstate (NYSE:ALL) in a report released on Friday. Zacks currently has a $61.00 price objective on the stock.

Other equities research analysts have also recently issued reports about the stock. Analysts at RBC Capital raised their price target on shares of Allstate from $63.00 to $64.00 in a research note on Friday, June 20th. They now have an outperform rating on the stock.

Separately, analysts at Guggenheim raised their price target on shares of Allstate from $75.00 to $78.00 in a research note on Monday, June 2nd. They now have a buy rating on the stock.

Finally, analysts at Deutsche Bank reiterated a hold rating on shares of Allstate in a research note on Tuesday, May 13th. They now have a $62.00 price target on the stock, up previously from $58.00. Four analysts have rated the stock with a hold rating, eight have issued a buy rating and one has given a strong buy rating to the company. Allstate presently has an average rating of Buy and a consensus price target of $62.00.

Allstate opened at 58.69 on Friday. Allstate has a one-year low of $47.32 and a one-year high of $59.68. The stock has a 50-day moving average of $58.60 and a 200-day moving average of $55.40. The company has a market cap of $25.471 billion and a price-to-earnings ratio of 12.68.

The company also recently announced a quarterly dividend, which is scheduled for Tuesday, July 1st. Investors of record on Friday, May 30th will be paid a dividend of $0.28 per share. This represents a $1.12 annualized dividend and a dividend yield of 1.91%. The ex-dividend date is Wednesday, May 28th.

Click here to read the full article online: http://www.watchlistnews.com/the-allstate-stock-rating-reaffirmed-by-zacks-all/50109/

www.agencyupdates.com

How Berkshire Hathaway's GEICO Crushes Allstate and Progressive June 27, 2014, By Patrick Morris, Fool.com (Excerpt)

Allstate and Progressive have commanding positions in the insurance industry in America. But it turns out Berkshire Hathaway's GEICO is absolutely crushing them.

The big leap For the full year in 2013, we learned that GEICO supplanted Allstate to claim the title of being the second-largest auto insurer in the United States. The business at Berkshire Hathaway saw its auto insurance premiums rise by 11.3%, to $18.6 billion, while Allstate only saw its rise by 3.4%, to $18.1 billion.

The growth of Progressive and market leader State Farm was better than Allstate, but none of the big four in insurance saw the gains posted by GEICO:

Source: SNL Financial

In fact, it wasn't just the three major insurers of State Farm, Allstate, and Progressive that GEICO topped, but, in fact, all of the top-20 insurers when it came to adding to its customer base. SNL Financial notes the next closest insurer that saw growth close to what GEICO witnessed was Liberty Mutual -- its policies rose by almost $775 million, or 9.4%, to stand at $9 billion. And GEICO is running its insurance business more efficiently and effectively, as well.

One of the key metrics to watch at insurers is the combined ratio. It's used to calculate if the insurer is actually making money from the policies it writes, after factoring out the losses and expenses. As my colleague Brendan Mathews explains, "A ratio below 100 is good -- that means profits on underwriting; a ratio above 100 is bad -- that indicates losses on underwriting."

Here, again, we see Allstate, Progressive, and State Farm were once again topped by GEICO.

Source: SNL Financial

GEICO had the highest loss ratio -- which measures the actual claims it had to pay out relative to the premiums it brought in -- but you can see it offsets this by doing a remarkable job at managing its expenses. This effective management of the costs explains why it was able to post an underwriting gain of $1.1 billion last year.

On the other hand, despite the fact that Allstate wrote just 3% fewer policies than GEICO, its income was 40% lower, standing at $668 million in 2013, thanks to its incredibly high expense ratio.

Looking ahead Warren Buffett has long lauded GEICO for its ability to manage its expenses. When it was fully purchased nearly 20 years ago, he said, "The ultimate key to its success is its rock-bottom operating costs, which virtually no competitor can match."

This was true 20 years ago, and it clearly is still true today. It's one more reason for shareholders to be optimistic about the future of Berkshire Hathaway.

Warren Buffett: This new technology is a "real threat" to GEICO Warren Buffett isn't scared of insurers, but there is one thing that makes him nervous. In fact, at the recent Berkshire Hathaway annual meeting, Buffett admitted this emerging technology is threatening his biggest cash cow. While Buffett shakes in his billionaire boots, only a few investors are embracing this new market, which experts say will be worth more than $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping into one company that could get you the biggest piece of the action.

Click here to read the full article online: http://www.fool.com/investing

Click here to comment: ExecutiveDirector@napaaUSA.org

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Ask the Readers: Are these good enough reasons to buy life insurance?

June 27, 2014, By April Dykman, GetRichSlowly.org (Excerpt)

There are a lot of really good reasons to have a life insurance policy, no doubt.

If you have children, they're dependent on your income. You want them to be taken care of should something ever happen to you. If your spouse stays at home with the kids, he or she is dependent on your income. If you stay home with the kids, your spouse is dependent on your "childcare services." (Obviously, you're more than just a service provider when it's your own children, but should something happen to you, your spouse would have to pay for childcare, which, as most parents can tell you, isn't cheap.)

Those are just a few examples of why life insurance might make sense.

But often when I read or hear pitches for life insurance policies, the writer and/or salesperson brings up other reasons why life insurance is important that I'm not so sure about. Reasons like:

Funeral costs. If something happened to you, how would your family afford your funeral? Loss of income from grief. How much income would your spouse need to take off from work to

recover from your loss? And what would that cost them in terms of salary? Making the mortgage payment. How would your spouse afford your current house payments and bills

without your income?

But are those always good reasons to have life insurance?

For funeral expenses, the national median cost of a funeral in 2012 was $7,045, according to the National Funeral Directors Association. Cemetery services can cost an additional $3,000, so let's say $9,600. (Cremation, which is growing in popularity, is significantly less. The average cost of cremation is about $1,600, ranging from about $1,000 to more than $5,000, depending on additional services purchased.)

So, for me, covering funeral expenses doesn't seem to be a good reason for a life insurance policy. It seems like funeral services are something that could be covered by a solid emergency fund, especially since my family is well aware of my (inexpensive) wishes.

Okay. So what about loss of income during the grieving period? That seems reasonable. After all, it takes time to find a new normal after a tragic loss.

Here's one example of advice from a "life agent and financial adviser" who says that a parent should get life insurance to cover salary losses during bereavement:

"It is hard enough to think about losing your spouse to an untimely death. Now try to imagine how much time you would need to grieve for the loss of one of your children. How much time would you need to take off from work? How much would that cost you in the form of your salary?"

"...I am a husband and father first, a life agent/financial adviser second. I have over $1.2 million of coverage on my 2 1/2-month-old son ... I pay $7,000 a year for 20 years at which point I don't have to pay a dime ever again in premiums, no matter what. It is a fully paid-up policy."

But I have to wonder, how much time could someone really take off of work?

Maybe you could use vacation time, if you have it; but that's typically paid time off, so no loss of income there. And some companies do offer unpaid bereavement leave, but it's usually only three days. After that, it seems

like you're looking at an extended leave of some sort, or you'll have to quit your job (or else get fired, if you're taking off too much time). Most people just can't afford to do that, no matter how much they might be grieving.

Finally, there's the "paying the mortgage" argument. Some advisers say that if you and your spouse buy a new house, you should have life insurance to help them make the house payments should anything happen to you. In some instances, it does make sense. Maybe you have a spouse and children and you don't want your death to put them out of their home.

But let's say you're married and don't have children. Would your surviving spouse even want to stay in your home? It might be too painful. It might be too much house for just one person. It might make more sense, financially and emotionally, to sell the house and downsize. And in the meantime, to make ends meet, isn't this where the emergency fund comes in?

It seems like owning a home with someone isn't necessarily reason enough to buy life insurance.

Click here to read the full article online: http://www.getrichslowly.org

cparkhurst@ovationpayroll.com

Allstate Reports May Catastrophe Loss Estimate

June 24, 2014, Insurancenews.net (Excerpt)

The Allstate Corp. revealed estimated catastrophe losses for the month of May 2014 of $440 million, pre-tax ($286 million after- tax).

Allstate said in a release that catastrophe losses occurring in May comprised eleven events at an estimated cost of $400 million, pre-tax, plus unfavorable reserve re-estimates of prior reported catastrophe losses.

The company reported that three severe weather events accounted for over 78 percent of the estimated catastrophe losses for May events.

Allstate previously announced $280 million, pre-tax ($182 million after-tax), in estimated catastrophe losses for the month of April 2014, bringing estimated catastrophe losses for the second quarter months of April and May 2014 to $720 million, pre-tax ($468 million after-tax).

Last year, Allstate announced estimated May catastrophe losses of $323 million, pre-tax ($210 million after-tax), and catastrophe losses totaling $539 million, pre-tax ($350 million after-tax) for April and May 2013.

Click here to read the full article online: http://insurancenewsnet.com/oarticle/2014/06/24/allstate-reports-may-catastrophe-loss-estimate-a-521488.html#.U6q1QjTD8dU

Allstate@TheKindnessRevolution.net

High Customer Satisfaction Index (CSI) Scores Equal Higher Retentions

Satisfied customers mean more profits--but you can't rely on tech alone to get them that way. June 23, 2014, By Rick Gilman, APR, CMP, PropertyCasualty360.com (Excerpt)

I recently received a report from Agency Revolution entitled, "Insurance Marketing Brief: The Ultimate Shortcut to Growth." Michael Jans, [Agency Revolution's] CEO, refers to the "five ways that consumers interact with the industry" as determined by JD Power as:

1.No perceived interaction with the industry

2.No agent

3.Agent only

4.Agency who uses traditional technology

5.Agency who use emerging technology

He then points to several findings that say that agencies that interact with customers using emerging technologies tend to have happier clients than everyone else. It turns out that happy clients make a big difference especially in the agency pocketbook.

The study shows that "happy" clients with a higher Customer Satisfaction Index (CSI) score of 852 have a 95.5% retention rate compared with customers with a lower CSI of 750, which are retained at a rate of 82%. That 13.5% difference can result in "an extra $130,000 for every million dollars in your book of business."

Retention isn't the only benefit; the happier your customers are, generally the more policies they have with you and price becomes less of an issue. What do the direct writers compete on?

Price. Take that off the table and the field is a bit more level.

So how do you make your customers happy? Well, despite the findings by JD Power, throwing "emerging technology" at them isn't going to cut it. First, if it were that simple, you'd be changing your approach weekly, because that's how often new technology emerges. Second, leveraging new technologies doesn't mean dumping traditional methods completely.

Knowing which tools to use depends on what you want to do with them and whom you want to reach. Although we often equate emerging technologies with younger users, I'm a baby boomer and love new technology, so you can't make assumptions. On the flip side, I know several young people, including my son, who narrow their interactivity to texting and YouTube.

So the right pathway to making your customers happy is, first, knowing there's not just one way.

The second step has to do with identifying tools that are open and flexible enough to enable you to manage your marketing efforts from a single point. That step will also go a long way toward making you happy.

I'm a big believer in providing options. If you can implement tools that automate a process yet don't take off the table the greater high-touch service some customers need or expect, then you've got the best of both worlds.

So websites that have simple request quote or self-service certificates make the interaction easy and fast, which is a critical factor for most people. But to complete this picture, the site should also have 24-hour online chat or call center to answer any question. Now you've got your bases covered.

Similarly, if you've chosen to create a mobile app for your agency, don't think it is meant to replace your website. They are very different tools, serve different purposes, and resonate with different stakeholders. Although studies show that smart phones are at the tipping point and represent the clear trend for which consumers have opted, they aren't yet 100% of the market. In fact, according to a study by the Pew Research Internet Project, as of January 2014, of American adults:

90% have a cell phone

58% have a smartphone

32% own an e-reader

42% own a tablet computer

What these numbers don't show is the growth of smartphone sales and daily use. So if an emerging market for you is young, middle-to-high-income families, smartphone marketing is where you want to be, according to this study: 83% of the 18 to 29 age group have smartphones; 71% are college educated; and 81% are earning $75,000 or more.

If you don't see that as a viable or important market for you, then you need to take another look.

Merely throwing technology at your customers won't make anyone happy.

Click here to read the full article online: http://www.propertycasualty360.com

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Mission Statement: NAPAA is dedicated to the success of Allstate Exclusive Agency Owners and to advance the independence and entrepreneurial spirit of our members.

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The views expressed by NAPAA, or any of its positions relative to its activities and those of its members' actions on behalf of this organization, are expressly those of NAPAA, and do not reflect the views or opinions of Allstate Insurance Company, or any of its affiliates.

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Contact Information for Agent Informer Newsletter & NAPAA Headquarters: National Association of Professional Allstate Agents, Inc. (NAPAA) P.O. Box 7666, Gulfport, MS 39506-7666 Toll free Phone: 877/627-2248 Toll free Fax: 866/627-2232 E-mail: ewiseman@napaainc.org Web Site: www.napaausa.org