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Transformative Growth and the ISA Quoting System

Brielle Anderson  ENG 315 Professor Amy Morris-Jones 17, May 2021

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Transformative Growth and New Technology Ecosystems

The “Allstate Year End Report Combo” (2020) posted on Allstate’s “Annual Report Archive” reveals how the goal of Transformative Growth for both Allstate and Esurance is “expanding customer access, improving customer value, increasing marketing sophistication and investment, and deploying new technology ecosystems” (Allstate, 2021, pp. 6).

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Transformative Growth and Improving the ISA System

If the CCC Allstate Sales District Managers approves having the ISA quoting system, it would help bring together the other goals of Transformative Growth: To expand customer access:       a. Improving the efficiency and important information of the Esurance mobile  app for our customers      b. Efficiency and ability of our customers to call more agents to buy a policy Improve customer value through     c.  Diminishing unethical behavior Increase marketing sophistication and investment      d.  Improving training      e. Meeting the Q/a requirement of 83%

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Expanding Customer Access through the Information in the Esurance App

Did not tell me the disclosure Took me 20 minutes to get an agent for MI information about my coverage The app and the agent did not know MI SB-1 customers need to know

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If you are at fault in an accident, you may be liable for the other party’s damages for their pain and suffering, and other medical costs that exceed their auto insurance coverage. Your policy will pay for such damages, but only up to the amount of the BI limit you choose. The State of Michigan recommends BI coverage of up to $250,000 per person and $500,000 per accident for these claims.   You will be required to pay any damages over the BI limit you choose. This amount could be substantial and may lead to severe financial consequences such as a lien being placed on your home, seizure of other assets, garnished wages, or driver’s license suspension.   Selecting lower BI limits may also affect your eligibility for an umbrella policy.   Now, I need to confirm your understanding and acknowledgement of what we’ve discussed. Please answer ‘yes’ or ‘no’ after each question:   •Do you recall our discussion on the BI coverage options available to you and the price for each option? •Do you understand that your BI coverage selection applies to you and any other person covered by this policy? •Do you understand that your chosen BI coverage limits will remain the same as long as the policy is in effect or until you change them? •Do you understand your BI coverage selection and the potentially severe financial consequences I described? •Is your decision to purchase BI limits of [$XXX/$XXX]? •And do I have permission to accept this form on your behalf, [Mr./Ms. Customer]?” IP Disclosure     ALL LIMITS: the Michigan Selection of PIP Medical Coverage Form will explain PIP coverage and the risks and benefits of choosing certain limits. To confirm, you said you wanted [insert the PIP limit selected here], correct? [Wait for the customer's acknowledgement]. Great. Feel free to ask any questions as we go through this form. When we’re done, I’ll ask you a series of questions and get your verbal acceptance.   PIP coverage pays for the medical expenses, wage loss, and replacement service costs of persons injured in auto accidents. If those injuries result in death, PIP also includes some funeral expense and survivors’ benefits which are paid to dependents.   ONLY READ THE COVERAGE LEVEL BELOW THAT THE CUSTOMER HAS PURCHASED:   •Unlimited: ◦Unlimited PIP will pay for all reasonable and necessary expenses for a covered person’s care, recovery, and rehabilitation if that person is injured in an auto accident. It will cover costs that may not be covered by health insurance, such as attendant care. Unlimited PIP will significantly limit the risk that out-of-pocket costs will be incurred for care, but the premium for this option is higher than the premium for other options.   •$500,000: ◦The $500,000 limit you chose is the most we will pay for an injured person’s expenses under PIP Medical coverage, which may not be enough to cover medical costs. ◦With this option, you can purchase excess attendant care coverage.   •$250,000 Without Exclusions: ◦The $250,000 limit you chose is the most we will pay for an injured person’s expenses under PIP Medical coverage, which may not be enough to cover medical costs. ◦With this option, you can purchase excess attendant care coverage.   •$250,000 With Exclusions: ◦The $250,000 limit you chose is the most we will pay for an injured person's expenses under PIP Medical coverage, which may not be enough to cover medical costs. ◦Anyone excluded from PIP Medical may need to rely on qualified health coverage to pay for auto accident injuries. Those persons should be aware that, unlike auto insurance, health insurance stops paying when the policy ends or is canceled. ◦If an excluded person loses their qualified health coverage, you must contact us to discuss your PIP Medical options within 30 days of the loss of coverage. ◦If an excluded person is injured within 30 days of losing qualified health coverage, they may apply to the Michigan Assigned Claims Plan if they have no other health or PIP coverage. ◦After 30 days of the loss of coverage, they will not be entitled to any PIP medical benefits. ◦With this option, you can purchase excess attendant care coverage, which would apply to anyone who is not excluded from PIP.   •$50,000 ◦The $50,000 limit you chose is the most we will pay for an injured person’s expenses under PIP Medical coverage, which may not be enough to cover medical costs. ◦With this option, you can purchase excess attendant care coverage.   •No Coverage: ◦You have chosen no PIP coverage. This means that you and any other persons covered by this policy will not have PIP medical coverage. You and those persons may have to rely on other health coverage to pay for medical expenses resulting from an auto accident. You should be aware that, unlike auto insurance, health insurance stops paying when the policy ends or is canceled. ◦If anyone covered by this policy loses their qualified health coverage, you must contact us to discuss your PIP medical options within 30 days of the loss of coverage. ◦ Within 30 days of losing qualified health coverage, if anyone covered by the policy is injured in an auto accident , coverage will be provided by the Michigan Assigned Claims Plan if they have no other health or PIP coverage. ◦After 30 days of the loss of coverage, they will not be entitled to any PIP medical benefits.

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Expanding Customer Access by More Agents Taking More Calls

15 calls a day  Average of 5 minutes to read the disclosure 35 minutes of call time saved a day  This is about one extra call a day for every licensed agent

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Taking More Calls for Customers and Revenue

24,000 Licensed Sales Professionals (Allstate, 2021, Allstate Careers) at Allstate  3,160 ( Zippia , 2021, Frequently Asked Questions) licensed employees at Esurance 27,160 licensed agents could take one extra call a day 135,800 more calls a week

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Improving Customer Value by Decreasing Unethical Behavior

Scott: “saw someone issue a policy with state minimum requirements even though the financed vehicle was required to have higher coverages. The agent charged the customer the lower cost so the agent would get the sale. He went back in and adjusted the coverages to what was required for financed vehicles after the policy was issued to avoid the higher payment. It was identified. They got in trouble.”  (Anderson, Unethical Information, April 12, 2021).  It could block sales team members and customers from doing any unethical or unlawful steps  Stop customers and sales team members from accidently making those type of mistakes

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Increase Sophistication and Investment in training and Meeting Q/A Requirements

These coworkers were graded 74%, 77%, 81%, 77%, 91%, 81%, and 83% The mean of the first training calls was 80.5% which is below the Q/A requirement of 83% for each call

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Allstate 2021 First Quarter Outcomes and Solutions by Transformative Growth

The adjusted net income was $1.9 Billion (T. Wilson, M. Rizzo, personal communication, March 5 th , 2021)   Revenue from Home Depot and National General up by 20.6% (Grow Customer Base)  Net loss of $1.4 Billion by selling the life and annuity products of Allstate The solution would be to have the CCC Allstate Sales District Managers  approve and update the ISA system with ECHO information

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I encourage the CCC Allstate Sales District Managers to approve and update the ISA system with the important and legal information in ECHO, such as state disclosures. This will help achieve our Transformative Growth mission of: 1.  Broadening customer access on the Esurance App and calling Allstate and Esurance agents 2.  Improving customer value through diminishing unethical behaviors by customers and our coworkers 3. Investing and marketing through meeting the Q/A requirement of 83% and improving training 4. It would also diminish the $1.4 billion net loss in life and annuity product sales in Quarter 1 of 2021 through allowing our coworkers the time to take 135,800 more calls a week

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Allstate. (2021, April 16). Insurance Customer Service Representative (Remote – Home Based Worker). https:// www.allstate.jobs /job/12609646/insurance-customer-service-representative-remote-home-based-worker-remote/ Allstate. (2021, February 19). Allstate Annual Report.  https://www.allstate.com/about/annual- report.aspx Daniels, S. (2019). Allstate scrapping Esurance brand: The move is part of what the company— which acquired the online auto insurer in 2011—is calling a “transformative growth plan.” Crain’s Chicago Business, 42(50), 7. Event Brief of Q3 2020 Allstate Corp Earnings Call - Final. (n.d.). Fair  Disclosure Wire (Quarterly Earnings Reports). LSCIB. (April,19,2021). MI SB-1 Disclosures and FAQS.  ECHOBase .  Retrieved from https:// Esurance.rightanswers.com /portal/app/portlets/results/ viewsolution.jsp?solutionid =200527010307857 MarketLine Company Profile: The Allstate Corp. (2020). In Allstate  Corporation MarketLine Company Profile (pp. 1–30). Zippia . (2021). Esurance Insurance Services”.  Zippia : The Career Expert.   https://www.zippia.com/esurance-insurance-services-careers-22788/

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 Allstate. (2021, April 16). Insurance Customer Service Representative (Remote – Home Based Worker). https:// www.allstate.jobs /job/12609646/insurance-customer-service-representative-remote-home-based-worker-remote/ Allstate. (2021, February 19). Allstate Annual Report.  https://www.allstate.com/about/annual- report.aspx Daniels, S. (2019). Allstate scrapping Esurance brand: The move is part of what the company— which acquired the online auto insurer in 2011—is calling a “transformative growth plan.” Crain’s Chicago Business, 42(50), 7. Event Brief of Q3 2020 Allstate Corp Earnings Call - Final. (n.d.). Fair  Disclosure Wire (Quarterly Earnings Reports). LSCIB. (April,19,2021). MI SB-1 Disclosures and FAQS.  ECHOBase .  Retrieved from https:// Esurance.rightanswers.com /portal/app/portlets/results/ viewsolution.jsp?solutionid =200527010307857 MarketLine Company Profile: The Allstate Corp. (2020). In Allstate  Corporation MarketLine Company Profile (pp. 1–30). Zippia . (2021). Esurance Insurance Services”.  Zippia : The Career Expert.   https://www.zippia.com/esurance-insurance-services-careers-22788/

Transformative Growth and the ISA Quoting System

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