Over 500 at Allstate lose claims jobs to new smartphone photo app – Consumer News

on Aug3

2 August 2017 | 6:52 pm

Allstate’s new initiative allowing policyholders in car accidents to snap a photo of the damage for claims adjusting has led to the loss of more than 500 jobs around the country.

For months, anecdotal word of firing of claims adjusters has spread, without confirmation of just how widespread it was.

On the Northbrook-based insurer’s quarterly conference call, CEO Tom Wilson provided a number. Speaking of a $52 million charge against second-quarter earnings for cost-savings initiatives, Wilson said, “This is . . . severance for people who are no longer required. So that’s over 500 people.”

In addition, the company has closed hundreds of small, drive-in claims offices around the country.

Allstate’s QuickFoto service gives the company the option, after a claim is filed, to allow a policyholder to snap photos of the damage and transmit them via an app. Claims using the method can be settled quickly.

“We believe (claims) is an area primed for (emerging technologies) because there is some inefficiency in the way the model operated,” Allstate President Matthew Winter told analysts on today’s call. “In the past, there was a lot of windshield time, there was a lot of dead time, unproductive time, as adjusters drove around, driving to cars, driving to body shops for both initial estimates and supplements.”

“Approximately half right now of all drivable vehicles are being inspected through our QuickFoto method of settlement,” he added. “That has led to the shutdown of many of our drive-in claims centers, and it has also led to a reduced need for field adjusters. . . .We now have our adjusters looking at enhanced photos, digital photos in the computers, without having to drive to and from the sites.”

A spokesman didn’t immediately respond to a request for comment, and there was no word on how many of those job losses were in Illinois.



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