Phase out of Esurance brand is expected to reduce the operations expenses for Allstate
Image: Allstate Insurance office in Toronto, Canada. Raysonho@Open Grid Scheduler/Grid Engine/Wikipedia.org
Illinois-headquartered insurance company Allstate announced that it plans to phase out its Esurance brand, starting next year.
Allstate stated that the phase out is part of its Tranformative Growth Plan. As per the plan, the company aims to combine the Allstate, Esurance, Encompass and Answer Financial organizations into one business model. The move is expected to lower costs, while offering more competitive prices without reducing profit margins.
The company also stated that it will redesign property-liability products to offer quality, rewarding engagement and community affiliation. The redesigned insurance pricing will use new and sophisticated algorithms including telematics and will reflect the service model that a customer chooses.
Currently, customers access Allstate property-liability products through its agencies, call centers and online but choice was limited by internal business rules.
In 2020, the company will expand the access to enable consumers to select a method of interaction without restrictions.
Customers will be offered with ‘circle of protection’ Leveraging a wide range of products such as home, renters, personal liability and life insurance, product protection plans and identity protection, Allstate intends to provide its customers with ‘circle of protection’.
The company is also expanding centralised customer service to improve consistency, reduce costs and enable its agents to focus on growth and relationships.
Allstate will invest Esurance phase out savings in brand marketing,
The operating expenses that will be saved by Esurance phase out will be invested in marketing of the Allstate brand, the company said.
Allstate chair, president and CEO Tom Wilson said: “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.
“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.”
In 2011, Allstate had acquired Esurance and Answer Financial for nearly $1bn.