Like all insurers, Allstate is operating in a highly pressurized environment. Rising costs, along with climate change, a new generation agnostic to insurance and digital competitors are challenging legacy insurers to rethink their marketing, even as their formerly large budgets for advertising get slashed.
In the recent second quarter, Allstate’s revenue jumped more than 14% from a year earlier, to nearly $14 billion. However, the company lost $1.4 billion in the period, exceeding the $1 billion it lost a year prior. On a call with analysts in early August, Mario Rizzo, president of property liability at Allstate, spoke about “temporarily reduced advertising to reflect the lower appetite for new business.”