Exclusivefocus Spring 2013 - National Association of Professional ...

letters to NAPAA
Just a heads up in case you haven’t
heard, Matt Winter used the word “franchise”
at least twice when referring to our
business when he spoke at the Orlando
Forum. In my opinion, he used that word
to describe the agent business opportunity,
or at least that’s what I took away
from the meeting. On the other hand,
maybe he just strayed off the reservation
with his comments.
I truly think that management is trying
to grow the Allstate Brand and trying to
walk the same fine line that Farmers does
with 21st Century. For our sake, I truly
hope we’re successful. Based on what they
said at the Forum, they plan to re-invent
the role of the Field Sales Leader to help
develop agencies that want to grow and
improve on their processes.
I thought the Forum was useful because
of the interaction and sharing that
took place between the agents during the
breakout session. We met in small groups
to talk about things that work and some
vendors that don’t work. I picked up
some good ideas that I’ll try in my agency.
I guess that just proves you can teach
an old dog some new tricks!
Editor’s response: I suspect that Matt’s
use of the word “franchise” was meant in
the broader business definition, which does
not always pertain to franchisor/franchisee
businesses that are regulated by federal and
state law.
I wanted to take a quick moment to
update you on our local Kickoff meeting
last week. Mr. Winter was very interesting
to listen to. If he does everything he
says, then we will be a great company
again, but I’m not banking on it.
What I found most interesting was
the amount of time he spent honestly
discussing the “bad moves” that the company
has made. He admitted that their
plans were poorly executed and caused us
to lose focus on growth. These included
the renewal questionnaire fiasco, property
non-renewals, auto rate increases…
and the list went on. He also admitted
that their initiatives would cause market
share to fall and stall growth, but would
stabilize the book and earn more profit.
If they had just explained this up front, a
lot of bad blood could have been spared.
Instead, they chose to threaten or terminate
us for our failure to grow.
I wondered how Mr. Winter could get
up on stage and publically admit that the
company’s plan did not allow for growth
– a plan that resulted in a great deal of
pain and anxiety for the agency force
– and then stand there and say that we
must move past “our” mistakes and look
towards a brighter future and allow for
more capacity to grow our agencies. As
I heard this, I wondered if he would say
the same thing if he was called to testify
in court.
In the end, maybe this is a good sign
for those of us who made it through the
Great Agent Purge. Unfortunately, these
words were too little, too late for my fallen
friends, family and colleagues.
How come NAPAA never took any
legal action over last year’s outrageous
commission cut to 9/9 or the shortages
in our comp statements
Editor’s response: Unfortunately, we had
no basis to sue Allstate over the 1% commission
reduction. The contract that you and the
rest of the agency force signed allows Allstate
to change commissions at any time with a
90-day notice.
As for the commission shortages, we’ve
asked Allstate’s audit department for a forensic
audit: a request they have yet to comply
with. In addition, we have asked several
agents if they would submit to an audit
of their comp history so we could use their
results as proof that the alleged shortages
exist. So far, no one has stepped forward.
Please understand that NAPAA calling for
a forensic audit does not require compliance
from Allstate. If we tried to sue Allstate over
the alleged shortages, both the court and Allstate
would ask for evidence, and as of today,
we have none.
By the way, here is Allstate’s most recent
statement regarding the commission issue:
“Deloitte & Touche has validated Allstate’s
SOX control assessments regarding
the financial reporting of agency compensation
as part of its audit of Allstate’s financial
statements. The Audit Committee
has overseen a review and revalidation of
agency compensation reports and payment.
The review determined that payments have
been correctly made and compensation correctly
reported to agencies and in Allstate’s
financial statements.
As part of Allstate’s due diligence in regards
to agency compensation Internal Audit
reviews agency compensation processes
on an ongoing basis and reports any issues.
Additionally, Internal Audit validates all
resolution activities prior to the release of
bonus payments to agencies.”
Source: EA Independent Contractor Reference
Guide – February 25, 2013
Section title: “Legal Compliance”
PRESIDENT continued from page 6.
to have escaped the acrimonious and painful upheaval that occurred over the past several
years under the direction of Tom Wilson. But as long as you remain an Allstate agent,
you will forever be affected by it. Starting with the paltry 9% base commission rate you
are paid. It is among the lowest in the industry and is expected to drop to 8% in 2015.
As much as he may deny it, Tom Wilson is no friend of the agent. He has to go – the
sooner the better. What must happen in order to forestall the competition from luring
more agents away and eroding more PIF is for the company to develop a fair contract
that pays an equitable base commission rate and offers more job security.
Don’t allow Mr. Wilson & Company to weaken the agency force any more. If all
8,300 Allstate agents joined NAPAA – the only organization dedicated to your success
– we would have the kind of leverage that is needed to effect positive change on
your behalf. Please come grow with us before it’s too late. Ef
8 — Exclusivefocus Spring 2013