brand-values
Allstate Plans to Nix the Esurance Brand in 2020
The online insurance company was bought in 2011 for $1 billion
Allstate is phasing out its Esurance brand in 2020 as part of a “transformative growth plan” in an effort to simplify and consolidate its offerings.
“Customers will benefit from additional service options, greater connectivity and higher-value products but the plan requires us to embrace change,” said Allstate chair, president and CEO Tom Wilson in a statement.
Encompass and Answer Financial, two other Allstate-owned brands, will also be combined under a single business model.
Wilson said the shift “reaffirms our commitment to Allstate agents with increased advertising. … This is about leading, not following.”
Esurance, which Allstate bought for $1 billion in 2011, has been a big player in the marketing world over the last several years. Founded in 1999, the internet-based insurance provider marketed itself as “Insurance. Only Better” in a campaign developed by West Hollywood’s Dailey & Associates.
Over the next two decades, that early slogan evolved into last year’s “Surprisingly Painless” campaign by Leo Burnett Chicago, featuring Dennis Quaid as the likable frontman. The brand also generated buzz with Twitter stunts during the Super Bowl that didn’t even require buying a spot in Big Game. On April Fools’ Day in 2016, the online insurance company ran an ad for “election insurance,” a promise to keep your home safe should you choose to flee the country in response to the election outcome.
By cutting the Esurance brand, Allstate—which was founded in 1931—said it will be able to offer a more streamlined communication for customers. Consolidation efforts will allow the company to cut costs for consumers and invest in more advanced technology to support better connectivity, products and operational adaptability.
“The Transformative Growth Plan will enable us to remain a strong competitor. Winning is our past, our present and our future,” Wilson said.
