40% layoff - Member Support Specialist Branch Insurance Employee Review

I hired on with many promises that were made to everyone. This was presented as a promising insuretech startup. I was told on a daily basis leaders are looking for leaders and the room to stay and grow with the company would be limitless, that Branch was doing things in insurance that other companies couldn’t, and this is what set them apart in the industry. However once the meetings start regularly, and the work begins you get the clear picture for yourself. Members call in daily with more than half the calls ultimately turning into member retention calls. Many members seen their renewals go up by 300% with no reason clearly given, and we had to defend and justify this. Underwriting guidelines changed on a daily basis which drove away existing loyal members to other carriers who were low risk and bring in money for the company, and well as pausing new business regardless of how low the risk was. Ultimately even with the insurance industry overall economic performance as of lately there is no reason for 300% increase in premiums. This comes from greed and bad business practices, and realizing you’ve messed up too late. With this being said on Thursday July 8th inbound calls we paused and a company wide all hands meeting popped up on everyone’s calendar. These things are planned in advance with a skeleton crew still in place on the phones to support the members. So immediately I knew this was bad news. As we joined the Zoom meeting without being able to turn on our cameras, mics, or chat for the first time ever I knew it was coming. A straight faced and monotone CEO, Steve Lekas, popped up on screen reading from a script. Branch immediately cut 40% of their workforce, 186 employees in total. Reasons cited were Branches loss ratio nearing 200% and the need to save money. This is also the same company who throws money around for frivolous things such as flying all new hires to Ohio from across the country, providing a high end hotel, meals, drinks, and spending money all for a 48 hour meet and greet. This provides no added value to the company, it’s members, nor investors, yet Branch continued these reckless financial practices to the week of lay offs. The company didn’t need to lay people off to “become profitable” it needed to get ahold of its irresponsible management and reckless spending habits. With this you would think the lay off would include those with the highest salaries who are not bringing in revenue to support the need for their role, however this was not the case. They cut more than half of their member support team, the front line defense for protecting and keeping your current business. They cut most of their claims team to go back to outsourcing, the very thing they got away from to improve member relations and decrease the most common complaint from members in their claim process, the process in which they need you most. They cut sales agents, since they are not taking on new business with their borderline discriminatory underwriting guidelines. Branch has “Roots” such as “Getting each others back”, “Finding positive intent”, and “Ask why”. Well Steve Lekas, I must ask you why, given everything I have outlined above that this was yet another irresponsible and reckless choice made under your leadership. I must ask where the positive intent is in all of this, leaving 186 people without a job and over 120k members with more outsourcing and poor member experience. How is this getting anyone’s back other than those in highest roles of your organization?