The Allstate Layoff 2020

The news of Allstate agents getting laid off has been huge in the year 2020. Although the pandemic might have brought a lot of changes in the global business and economics, Allstate says that there are more than that as reasons.

Even if there were no pandemic today, Allstate would have laid off its agents anyways. Mostly because it wants to reduce its operational costs as a profit minded business. Another reason is that the preference on independent insurance agencies getting more than the captive channels. It will be difficult for Allstate agents to thrive and run the businesses in a sustainable way.

But the layoff has affected the Allstate agents. Here are few impacts that they will face:

Difficult job for newcomers

Things can be difficult if you are a newcomer in the industry. It will be quite tricky for you to gain and retain the customers. It is because customers are more reliant towards the independent insurance agents. The direct channels are more effective than the traditional captive approach.

Difficulty in direct selling

There is a common habit amid the customers to receive certain packages and/or discounts. The direct channels are also offering a 7% discount on their policy. So, it can be extremely difficult for the Allstate agents to sell the same kind of products. It can effect on the way the agents present the policies too.