Umble Addresses Latest Allstate Changes, Explains How KPI Will Be Measured
October 23, 2009

Many questions have arisen since Allstate announced late last week that it would develop a Distinguished Performer program within its auto glass network, and that participation in the program would be based on Key Performance Indicators (KPI). Chris Umble, vice president, strategic initiatives, for LYNX Services, which administers glass claims for the Northbrook, Ill.-based insurer, provided answers to some of the many questions™/AGRR magazine readers have had about the program.

GB: How will the Key Performance Indicators be measured—specifically the Customer Service Index (CSI)?

Umble: Customer surveys are conducted on a sample size that includes over 50 percent of all Allstate auto glass claims. Historically, the CSI program generates a 30 percent average response rate, allowing sufficient data to distinguish the CSI performance of one Glass Claims Express (GCE) Participant versus another. Survey ratings received during the measurement period will be used to calculate a company's CSI score. Individual company CSI scores will be evaluated against the consistently high overall Allstate program score.

GB: The notice mentions that for both Warranty Performance and the Customer Service Index, participants must be at the "established KPI level." How will this level be determined?

Umble: Allstate completed an analysis based on years of data and established benchmarks for each KPI. The benchmarks are broad enough to ensure high participation at Tier 1; indeed 98.9 percent of our historical replacement claims will covered by two or more Tier 1 GCE participants. Allstate will not communicate the KPI benchmarks for competitive reasons, but through … LYNX Services, and the METRYX registry, [it] will take meaningful steps to help each GCE company understand how they are performing against the KPIs.

GB: There has been some concern expressed among readers that pricing competitiveness is a very important part of the Distinguished Performer program—how would you respond to those concerns? Also, how will this be measured?

Umble: Allstate realizes that price is an important component of value in any purchasing transaction. It should be clear with this initiative that Allstate will utilize non-price KPIs actively to recognize best in class performance. Our best-in-class performers will comprise our Tier 1 participants.

GB: Some shop owners may be part of Allstate's network (and may have been for some time), but might not have received 60 jobs. How can these businesses become Distinguished Performers? What is the time period to complete the 60 jobs?

Umble: In order to ensure that a broad cross section of GCE Participants have the opportunity to participate in the Tier 1 level, companies with [fewer] than 60 jobs in the past 180 days will be evaluated on the 60 jobs preceding the evaluation date. The data search will go back as far as three years if needed to include the minimum 60 jobs required for an assessment of performance. If a company has not performed 60 participant jobs in the previous three years, there is not adequate relevant data to be considered for the Tier 1 level.

GB: What brought about these changes?

Umble: While the GCE Program is designed to treat all participants uniformly and with consistency, there are important differences that distinguish GCE Participant companies one from another. Such differences include KPIs such as CSI and Warranty Frequency/Performance. Such measures, and others, comprise a set of KPIs that differentiate Tier 1 performers from the at-large industry participants.

Allstate also recognizes that the performance of any one company may change over time. For example, today's Tier 1 performer may not sustain a distinguished level of performance or commitment to Allstate. Likewise, Tier 2 GCE Participants may improve their results over time, qualifying them for Tier 1 designation. In short, the Tier 1 designation is one that must be continually demonstrated by consistent delivery of services that provide a "Best in Class" claims experience for Allstate policyholders and claimants.

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