AllState CEO Tom Wilson, whose company's market share has been on the decline in the past three years, stated that its main rival Geico may struggle to expand its sales base as the company tries to sell more policies at storefronts
AllState is a traditional insurance agency working with a network of agents while its Esurance unit offers the coverage online. Geico on the other hand, has won over consumers through direct sales and with lower prices and then built its network to increase its sales coverage. Geico is a unit of Berkshire Hathaway.
Speaking before an investor conference hosted by Barclays Plc in New York, Wilson declared, "We've been there, done that. It didn't work for us."
The AllState CEO said that the purchase of Esurance back in 2011 helped them outmaneuver Geico through coverage of differing groups of drivers with distinct vehicles and operations. He has been pressed though to draft a plan to maintain AllState's market share while Buffett's insurance companies expand alongside it.
The share of AllState in the US auto market dropped from 10.5% in 2009 to 10% this year. This was confirmed by the National Association of Insurance Commissioners while Berkshire's shares increased from 8.2% to 9.6% during the same period.
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