The Allstate Corporation has announced the launch of a “Transformative Growth Plan” to accelerate growth in its personal property-liability business. The company plans to expand costumer access, improve customer value propositions and increase its investment in growth and technology.
“Allstate has thrived for 88 years through innovation such as the use of local branded agencies, telematics pricing for auto insurance and settling auto insurance claims with digital photos,” said Tom Wilson, chair, president and CEO of Allstate. “This plan builds on a history of creating change and will improve our competitive position and accelerate growth. Customers will benefit from additional service options, greater connectivity and higher-value products, but the plan requires us to embrace change. This reaffirms our commitment to Allstate agents with increased advertising, enhanced new business opportunities and higher new business compensation. This is about leading, not following.”
Expanded customer access
While customers can currently access Allstate-branded property-liability products through agencies, call centers and online, choice is currently limited by internal business rules, the company said. In 2020, access will be expanded to enable customers to select a method of interaction without restrictions. As a result, it will no longer be necessary to utilize both the Allstate and Esurance brands for direct sales. The Esurance brand will be phased out in 2020, Allstate said.
Improved customer value
Allstate will improve insurance affordability by combining the Allstate, Esurance, Encompass and Answer Financial organizations into one business model. This will lower costs and support more competitive prices without reducing margins, the company said.
Property-liability products will be redesigned, and insurance pricing will utilize rating algorithms such as telematics and reflect the service model a customer chooses. The company is also expanding customer-service capabilities to improve consistency and reduce costs.
Increased investment in growth and technology
Allstate will reallocate Esurance spending and reduce operating expenses in order to significantly increase investments in marketing the Allstate brand. The company is building new technology ecosystems to support increased connectivity, new products, operational adaptability and lowered expenses.
“The Transformative Growth Plan will enable us to remain a strong competitor,” Wilson said. “Winning is our past, our present and our future.”
