The world has witnessed one of the biggest layoffs in the year of 2020, which was initiated by the insurance giant Allstate company. After the invasion of covid in 2020, many businesses were forced to shut down and many companies cut down in employees. However, when it comes to Allstate, can everything be blamed on lockdown and covid invasion? According to experts, Allstate layoff was a strategical planning that the company had initiated in order to take their business a step ahead. In this article we will discuss whether the layoff was a strategical step or a by-product of pandemic. The analysis has been completed deriving information from ALInscribe.
About Allstate Company
The Allstate corporation is an American company, which manages its ventures in the insurance industry. The headquarters of the company is situated in Northfield Township, Illinois. The company was founded in the year of 1931 and completely went independent in the year of 1995. In 2018, the company was reported to generate a revenue of $39.8 billion. In 2019, it was ranked as one of the largest American corporations in Fortune 500 list. The current CEO of the company is Thomas J. Wilson. Allstate is also one of the most preferred insurance companies in all over the US. Allstate has a vast history of serving in the insurance industry. However, the biggest drawback that is associated with the company is that the customer service rating of Allstate is lower than its competitors.
Probable reason behind Allstate layoff
As it has been stated previously, the layoff is actually a strategical planning to be implemented for enhancing the profitability of the company. However, there are some of the probable reasons to instigate the layoff. These probable reasons are explained below,
The company has laid off 8% of its total employees, which is almost 3,800 employees from different departments. Most employees have been laid off from support, sales, and claims department. During 2020 the number of car accidents dropped significantly and there were less claims during that year, which signifies that the employees of the mentioned department were not much of use to the company. Hence, cutting them off saved a major part of the company’s expenses.
The company changed its approach from captive carrier to direct-to-customer, which means the internal proceedings of the company changed as well. Hence, the new approach can also be a potential reason to stay behind the course of the layoff.
Most of the agents of captive carrier are trained traditionally, thus, they are not accustomed to technology. However, the new generation insureds are mostly inclined towards technology, and they do not want to go through the process of dealing with an agent. Therefore, Allstate was missing out on the preferences of the new generation insureds, which instigated them to cut off the employees to know little about technology.
The competitors of Allstate, such as GEICO and Progressive, have been performing in the auto insurance industry for their competitive prices and their direct-to-customer approach. Thus, for implementing a competitive pricing the company had to eliminate some employees and save some expenses. Thus, it can be another potential reason to persist behind the course of Allstate layoff.
Please note that the above provided reasons have been derived from ALInscribe’s Everything You Need to Know About ALLSTATE Layoff 2022 And More article. The article contains a better discussion along with a detailed analysis.
Allstate insurance review after layoff
Post layoff Allstate has started to provide their customers with an extra discount. The customers, who join directly via their website are now provided with 7% discount. Moreover, the company has also made their insurance policies more affordable than before.
Allstate is mostly famous for its car insurance policies along with life insurance, motorcycle insurance, renters’ insurance, and off-road insurance plans. The classic car insurance plan of Allstate is quite beneficial for their customers. Additionally, they provide a roadside assistance for 24/7 along with an entire package of 10+ discounts. The minimum liability coverage for Allstate car insurance only starts from $65 monthly. However, if you are under 25 then you may have to pay a quite high price for both monthly and annual premium. Nevertheless, your credit score, driving record, and the type of car you drive determine your car insurance cost.
Allstate also offers a home insurance service and is considered as the second largest some insurance provider in the US. The biggest advantage associated with Allstate’s home insurance service is that the company is available all over the US. Hence, if you shift to a different location, you can still opt for Allstate home insurance policy without any difficulties. Moreover, the insureds are provided with an option of customizing their homeowner’s insurance plan with different coverage options. However, the prices for the homeowners’ insurance policy can prove to be too high at times. The monthly average of Allstate’s home insurance policy starts from an average of $302. Therefore, I might not always be as affordable as the competitors of Allstate.
Nevertheless, if you the owner of a high-value home then Allstate can be a good choice for you. The extensive coverage options associated with the company’s home insurance policy provides your home with an ultimate protection. Also, you can be eligible for different kind of discounts to lower your annual premium and to extract the value of your insurance policy.
Conclusion
It needs to be noted that this article is an overall presentation of Allstate layoff issue. The detailed analysis and discussion of results have been discussed in ALInscribe’s article called, everything you need to know about the layoff 2022 and more. The article has a better analysis of the probable reasons, along with a proper review on Allstate’s car insurance and home insurance plans. The impact of the layoff on the employees, the agents and the customers have been discussed with proper reasoning. The advantages and disadvantages of both of the insurance plans have been discussed as well. Moreover, the coverage options along with average annual and monthly rates have been provided as well.
