NAPAA/OPEIU Guild 17 Survey of Allstate Agents Spells More Trouble for Giant Insurer

GULFPORT, Miss., Feb. 8, 2012 /PRNewswire-USNewswire/ -- More than 1,800 Allstate agents recently participated in a national survey created to measure agent satisfaction levels at Allstate Insurance Company. 

Until recently, the company has largely ignored telltale signs of discontent among its exclusive agent channel.  Morale is already at an all-time low, and it appears it will sink even further before company leadership grasps the enormity of the problem.

The survey, which began in early January, was conducted by the National Association of Professional Allstate Agents, Inc. (NAPAA/OPEIU Guild 17). It was modeled after Allstate's own Agency Loyalty Survey (ALI), which the company claims accurately measures customer satisfaction levels. In past years, a score of 60 or less for three years in a row was cause for termination for many Allstate agents.

Allstate fared very poorly in the NAPAA survey. Using a scoring formula similar to the one Allstate employs in its ALI survey, the company scored less than zero, meaning a higher percentage of agents ranked the company with negative answers in all categories than those who ranked it positive in every category.  "If we apply the same level of acceptability that Allstate requires of its agents, the company has a very long way to go to improve relations with its agency force," noted Jim Fish, NAPAA's executive director.

Overall, 73% of agents answering the survey were "not very" or "not at all" satisfied with their relationship with the company.   When asked if they would be willing to refer a friend or relative to become an Allstate agent, 85% responded either "not likely" or "would recommend against it."

In recent months, the beleaguered company has been beset by a string of unpopular missteps that have further alienated an already fractured relationship with its agents. Signs of trouble were heightened last summer in the lead up to NAPAA's historic secret ballot vote, which resulted in a landslide victory for NAPAA members who supported an affiliation with the Office and Professional Employees International Union (OPEIU), AFL-CIO. At the time, Allstate CEO Tom Wilson rejected the validity of the vote by saying that many agents were "highly supportive" of his strategy and dismissed NAPAA as a "small group" consisting of only a "small number" of current Allstate agents.

"With a 94.4% vote in favor of affiliating with OPEIU, we knew he was dead wrong, so we decided to poll the agency force to find out the truth," said Fish.  "Our survey was open to all Allstate agency owners and we encouraged all of them to participate. Out of the more than 1,800 who responded, only about 500 were NAPAA members."

Since the affiliation vote, there have been clashes over commission cutbacks and allegations of commission shortages, which have incensed agents even more, leading many to quit in disgust. "We believe as many as 1,000 agents left the company in the fourth quarter of 2011 and more will surely follow," added Fish.

The survey was announced in an article in the winter edition of Exclusivefocus, a magazine distributed to Allstate agents nationwide.  Invitations to take the survey were then posted on popular Allstate agent blogs and e-mail notifications were sent to nearly 8,800 Allstate agency owners. "There were plenty of opportunities for all agency owners to participate," said Fish.

ABOUT NAPAA/OPEIU GUILD 17

Based in Gulfport, Mississippi, NAPAA/OPEIU Guild 17 is a non-profit organization whose members are predominantly insurance agents under contract with Allstate. In addition to offering a variety of benefits and services, NAPAA/OPEIU Guild 17 further serves its members by acting on their behalf and speaking with a distinct and unfettered voice on a wide range of issues. To contact NAPAA, please visit its Website at www.napaaUSA.org or call (877) 269-3474.

ABOUT OPEIU

The Office and Professional Employees International Union represents more than 125,000 employees and independent contractors in the United States, Puerto Rico and Canada in banking, insurance, higher education, shipping, hospitals, medical clinics, utilities, transportation, hotels, administrative offices and more.

Professional organizations and Guilds affiliated with OPEIU are a diverse group that includes physicians, pharmacists, chiropractors, appraisers, podiatrists, clinical social workers, hypnotists, teachers and helicopter pilots.              

SOURCE Office and Professional Employees International Union, AFL-CIO (OPEIU)