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The Allstate Corp. announced plans to combine the Allstate, Esurance, Encompass and Answer Financial organizations into one business model. It’s expected that the move will lower costs and support more comprehensive prices without reducing margins, the Northbrook-based company announced in a news release.

"Allstate has thrived for 88 years through innovation such as the use of local branded agencies, telematics pricing for auto insurance and settling auto insurance claims with digital photos,” Allstate President and CEO Tom Wilson said in a statement.

“This plan builds on a history of creating change and will improve our competitive position and accelerate growth. Customers will benefit from additional service options, greater connectivity and higher-value products, but the plan requires us to embrace change. This reaffirms our commitment to Allstate agents with increased advertising, enhanced new business opportunities and higher new business compensation. This is about leading, not following.”

The transformative growth plan leverages the Allstate brand, people and technology to accelerate growth in its personal property-liability business, the news release states. It is also expected to enable Allstate to expand customer access, improve customer value propositions and increase investment in growth and technology.

“Consumers currently can access Allstate branded property-liability products through Allstate agencies, call centers and online but choice is limited by internal business rules,” states the news release. “Access will be expanded in 2020 to enable consumers to select a method of interaction without restrictions. As a result, it will no longer be necessary to utilize both the Allstate and Esurance brands for direct sales and the Esurance brand will be phased out in 2020.”

Investments in marketing the Allstate brand are expected to increase significantly as a result of reallocating Esurance spending and reducing operating expenses.

New technology ecosystems are being built to support increased connectivity, new products, operational adaptability and lower expenses.

"The Transformative Growth Plan will enable us to remain a strong competitor,” Wilson added.

Allstate is one of the nation's largest insurers with 136 million policies in force, protecting cars, homes, motorcycles, lives, personal devices and identities.