The giant is setting itself up for growth on acquisitions, divestitures and technology investments.
The Allstate Corporation is aligning itself with a growth plan based on business streamlining, which will include digital insurance technology investments, acquisitions, divestitures, and other initiatives for long-term growth.
The nationwide insurer has experienced revenue increases every year – including last year – since 2011.
Last year, Allstate still grew its revenue by 0.3 percent. The company’s efforts to remain in positive growth last year was an impressive one when considering the difficult circumstances that it faced. Now, it will be streamlining its business and placing a greater focus on digital insurance tools.
Its long-term strategy has been to raise its market share in personal property-liability and to broaden its offerings under its well recognized name. Its growth was driven by leveraging that brand, its capabilities and its customer base. Over the last few months, it has shifted gears and made some substantial changes.
As it has acquired and sold businesses, Allstate has also been investing in digital insurance technology.
At the start of this year, Allstate Acquired National General, expanding its personal-liability market share. In fact, Allstate is expected to have gained a full percentage point of market share through this move, while also boosting the technology available to its independent agents.
Equally, it is greatly boosting the size of its distribution, bringing Allstate into the top five list for personal carrier lines in the independent agency distribution ecosystem. Homeowners and auto insurance are also providing additional opportunities for expansion through independent agents.
Another area in which Allstate is focusing its growth strategy is in Protection Services and expanding their business there. Last year, that segment comprised 4.3 percent of the 2020 consolidated total revenues for the company. Now, it is expanding other protection businesses and is boosting the total addressable market by offering superior value propositions while constructing connection and engagement platforms for customers.
That effort includes the investments into digital insurance offerings in order to address the evolving preferences and needs of their customers. The effort to digitize its processes has been an ongoing one. It was already broadening the use of virtual claims processes due to customer preference but accelerated that strategy in the face of the pandemic.