00:00It's Benzinga, bringing Wall Street to Main Street.
00:02State Farm CEO
00:05John Farney told thousands of agents at a Las Vegas convention
00:09that the insurer is scrapping existing contracts, according to the Wall Street Journal.
00:13Agents who want to stay past 2027 must sign a new compensation deal with updated sales targets.
00:19The new contract ends a deferred compensation program,
00:23eliminates health benefits, and adjusts commissions on several policy types.
00:27Agents who miss sales targets for two consecutive years will face lower commissions.
00:32AI is disrupting the insurance industry's decades-old sales model
00:35by enabling faster, cheaper, and more targeted transactions.
00:40State Farm announced an AI and digital initiative called Next Gen Good Neighbor
00:44to blend technology with human interactions.
00:47Gross annual income could fall up to 40% for some agents.
00:51For all things money, visit Benzinga.com.
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