This week, the Chicago Tribune announced that Allstate had laid off more than 500 employees, as the company makes the transition to “a more efficient system”. A spokesman for the company insisted the cuts were taking place nationwide, but refused to comment on the specifics. It is unknown what areas will be impacted or when the layoffs will end.
Nevertheless, Allstate has begun to rely more heavily on its QuickFoto Claim feature, which allows consumers to take photographs of the crash damage to initiate the claims process. During an August 2nd earnings call with investors, Allstate President Matt Winter insisted the method was becoming dominant.
The company has also made the transition to utilizing drones to examine roof damage. Winter concluded that the combination created “a more efficient system”. Winter went on to explain that older methods were inefficient and created a lot of dead time as adjusters were required to travel from car to car and body shop to body shop.
Allstate has also taken steps to reduce its dependence on drive-in inspection centers, which were previously used for vehicle assessments. During the earnings call, Chairman and CEO Thomas Wilson confirmed that the company had roughly 940 drive-ins. It is unknown how many have been closed to date.
This year, Allstate’s Esurance brand, eliminated around 100 positions nationwide. For many employees, their final workday was on May the 28th. Most of Esurance’s layoffs impacted three offices. Layoffs took place at an office in Sioux Falls, South Dakota and at two offices in California. It is unknown whether or not the 100 Esurance layoffs attributed to the total 500.
The company believes that the QuickFoto Claim feature could help to create new positions in the future. Over the years, more responsibility has been placed on the consumer’s shoulders, while jobs have been stricken as a result. Ordering kiosks, ATM machines, and self-checkouts are the spark that ignited the fire.
Technology is convenient, but that convenience comes at a cost. And often times, the consumer shoulders more responsibility without even realizing it. Allstate’s QuickFoto Claim feature seems to be following in suit with that trend.