The Allstate Corporation (NYSE: ALL) protects people from life's uncertainties with more than 113 million proprietary policies. Allstate offers a broad array of protection products through multiple brands and diverse distribution channels, including auto, home, life and other insurance offered through its Allstate, Esurance, Encompass, SquareTrade and Answer Financial brands. Allstate is widely known from the slogan "You're in Good Hands with Allstate." Allstate was founded in 1931 and became a publicly traded company in 1993. Allstate has a team who determines sales bonuses for agents. Bonuses vary depending on the number of auto, home, and financial products sold to customers. Customers receive discounts for bundling Allstate products. They are also more likely to remain Allstate customers the more Allstate products they purchase. A promising and unique financial product has just been piloted in 3 states. Prior to rolling out the product nationwide, Allstate would like to better estimate future sales to determine how to properly incent agents to sell the product. It is critical to develop a fair bonus structure to reward agents and strengthen the Allstate customer base, while returning a profit to the company to continue development of innovative products. The Allstate Management Consulting Services (AMCS) team helps to solve critical enterprise-wide strategy and operations challenges to ensure we are delivering best-in-class products and services to our customers. AMCS fosters a flexible business model that has the ability to provide company-wide perspective and continuity from the strategy to implementation phase, and can act as a liaison to external consultants as needed to keep management consulting services low. Allstate Sales has asked AMCS to establish a forecasting methodology using available sources of data to estimate sales of this financial product. This forecasting model will be used to estimate the number of financial products sold. However, the retention team will use available data to estimate the impact to customer retention.

 Demonstrate your understanding of the situation
 List your assumptions
 Present your approach
 Create an implementation plan
 Provide your final conclusions

Answer rating: 100% (QA)

Understanding the situation All state corporation is a firm that sells insurance to people The insurance sectors in this firm are auto home life and other insurances The corporation has done a handsom... View the full answer