Allstate scrapping Esurance brand

US insurer The Allstate Corporation is phasing out its Esurance brand in 2020. Allstate said that insurance affordability will be improved by combining the Allstate, Esurance, Encompass and Answer Financial organisations into one business model.

“This will lower costs and support more competitive prices without reducing margins,” Allstate said in a release.

“Property-liability products will be redesigned to provide simple quality, rewarding engagement and community affiliation. Insurance pricing will utilise sophisticated rating algorithms, such as telematics, and reflect the service model a customer chooses.”

It said customers will be provided with a “circle of protection” leveraging a wide range of products, including home, renters, personal liability and life insurance, product protection plans and identity protection.

Centralised customer service capabilities are being expanded to improve consistency, reduce costs and enable Allstate agents to focus on growth and relationships.

The changes are part of Allstate’s Transformative Growth Plan, which aims to leverage the Allstate brand, people and technology to accelerate growth in its personal property-liability business.

“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,” said Tom Wilson, chair, president and CEO. “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.”

Consumers can currently access Allstate branded property-liability products through Allstate agencies, call centres and online but choice is limited by internal business rules. Access will be expanded in 2020 to enable consumers to select a method of interaction without restrictions. As a result, Allstate said it will no longer be necessary to utilise both the Allstate and Esurance brands for direct sales.

Property-liability products will be redesigned to reward engagement and community affiliation. Insurance pricing will utilise rating algorithms, such as telematics, and reflect the service model a customer chooses.

Allstate said that centralised customer service capabilities are being expanded to improve consistency, reduce costs and enable Allstate agents to focus on growth and relationships.
It added that investments in marketing the Allstate brand will be significantly increased by reallocating Esurance spending and reducing operating expenses.

“The Transformative Growth Plan will enable us to remain a strong competitor. Winning is our past, our present and our future,” said Wilson.