Perhaps best known as the best insurance company for home and auto, State Farm also offers a number of life insurance products to clients at various stages of life. To help you learn more about life insurance coverage at State Farm, US News has put together a comprehensive profile that answers common questions from consumers.
What is a state farm?
State Farm was founded in 1922 as an auto insurance company and today operates as a joint venture with 83 million valid documents and accounts. Current services include life insurance, home and property insurance, auto and speciality vehicle insurance, health, liability and disability insurance. The company also offers home and auto loans, checking and savings accounts, credit cards, and a variety of other investment and financial services. It is based in Bloomington, Illinois.
State Farm Insurance: Everything you need to know:
- Founded: 1922
- Consolidated net income in 2018: $ 6,350 million
- Consolidated net premiums earned in 2018: $ 44.4 billion
- Number of employees: c. 58,000
- Number of agents: about 19,000
- 2018 Fortune 500 Companies Rank: # 36
State Farm is a large group of insurance and financial services companies based in the United States. The parent company of the group is State Farm Mutual Automobile Insurance Company, an insurance mutual based in Bloomington, Illinois. State Farm is well known for offering property and casualty (P&C) insurance products, especially on personal lines. According to SNL Financial Data, State Farm insures more cars and homes than any other insurance company in the United States.
In addition to offering general insurance, State Farm companies and affiliates also offer life insurance, health insurance, annuities, mutual funds, and banking products. In 2018, the company was ranked 36th on the Fortune 500 list of the largest companies. It has approximately 58,000 employees and sells its products through a force of 19,000 who are exclusive agents of the Independent Contractor’s State Farm.
Becoming a “good neighbour”
Consumers may know State Farm by its “good neighbour” motto. This hypothesis began about 100 years ago when retired farmer and insurance salesman George Jacob was “G.J.” Mecherle founded a single line auto insurance company in 1922, specifically targeting the farming community. Subsequently, the company expanded its customer reach and began offering other product lines, such as life and home insurance, followed by banking and other financial services. The phrase “good neighbour” has been around since 1971, when American songwriter Barry Manilow wrote a song for the insurance giant that included the phrase: “Like a good neighbour, State Farm is in.”
List of products
Today, State Farm offers about 100 products and services in five different business areas: property and casualty, life and health, pensions, mutual funds, and banking products. As of December 31, 2017, the company claimed to deliver approximately 83.4 million documents and accounts, including:
44.1 million in auto insurance
– More than 28 million people are insured against fires
– Eight million in life
Approximately 867,000 people are in healthy condition
Aside from insurance, State Farm claims to be the 101st bank in the US by assets (it owns approximately $ 16.7 billion) and has approximately 519,000 mutual fund accounts. State Farm reportedly handles about 39,000 claims per day.
Automotive Safety Champion:
For many years, State Farm has been an outspoken advocate for road safety. The company has been very involved and influential in the passage of various seat belt laws in the United States and continues to advocate for seat belt and teen driver safety. It is also a prominent player in the fight against dispersed leadership (a problem of quasi-epidemiological proportions in the United States), providing policy incentives around conducting best practices.
Dilution leads to lower costs:
State Farm safe driving strategies and messages appear to have an effect. In 2019, the insurance company announced price cuts for personal auto insurance in several states, including Arizona, Louisiana, and South Carolina. This is a newsworthy achievement for the insurance company, as the U.S. auto insurance industry overall faces multiple challenges around increasing frequency and severity of losses, driven largely measured by dispersed conduction.
While premiums for individual drivers continue to change based on policy terms, chosen coverage, and unique risk profiles, millions of State Farm auto insurance policyholders saw price cuts in 2019. Becky Blevins, vice president of State Farm – Agency commented: We are re-evaluating how best to serve our customers and we are very pleased to be able to offer [these price cuts]. Improving costs and losses was an important factor, among many who supported our decision to make a change to this rate. ”
Take the fight to insurtech:
Like all major insurance companies, State Farm has invested in innovation and technology to be able to compete in the modern digital marketplace. The company believes in empowering its agents with technology, but rejects the popular narrative that technology will somehow disrupt existing insurers and the traditional agent / broker distribution channel.
In 2018, State Farm launched a commercial, poking fun at AI tech companies like Lemonade. The ad shows Houston Rockets players James Harden and Chris Paul plus a State Farm agent (played by Oscar Nunez of “The Office”) taunting a robot insurance agent while trying to mimic human emotion. “The cheap insurers are building these cheap knockoff robots to compete with us … These robots don’t have the sympathy of a true state agricultural agent,” Núñez’s character said in the commercial.
Despite its playful tone, State Farm received some magic wand after the commercial was released. Author and futurist Chunca Moi wrote in a Forbes article that there is more than just talking about robots and that state farm executives need to move beyond cynicism and think deeply about how emerging innovations can alter their strategic assumptions.