State Farm(Redirected from State Farm Insurance)
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State Farm is a large group of insurance and financial services companies throughout the United States with corporate headquarters in Bloomington, Illinois. The group's main business is State Farm Mutual Automobile Insurance Company, a mutual insurance firm that also owns the other State Farm companies. State Farm ranked No. 36 on the 2018 Fortune 500 list of the largest United States corporations by total revenue.
|Mutual (main company)|
|Founded||June 7, 1922|
|Founder||George J. Mecherle|
Number of locations
343 claim offices
30 operations centers
|Michael Tipsord (Chairman, President & CEO)|
|Services||Insurance, Banking, Investing|
|Revenue||$87.6 billion USD (2017)|
|$2.2 billion USD (2017)|
|Total assets||$241.183 billion USD (2015)|
|Total equity||$75.900 billion USD (2013)|
Number of employees
|Divisions||Insurance; mutual funds; State Farm Bank|
|Subsidiaries||see Companies below|
State Farm is the largest property and casualty insurance provider in the United States. It is also the largest auto insurance provider in the United States. State Farm is ranked 33rd in the 2017 Fortune 500, which lists American companies by revenue.
State Farm relies on exclusive agents (also known as captive agents) to sell insurance. Only State Farm agents can sell State Farm insurance, and their agents can sell only State Farm products.
State Farm's top automobile insurance competitors, based on premium written, include Farmers Insurance, Allstate, Progressive, GEICO, Zurich Financial Services, Reliance Partners, Nationwide, USAA, Liberty Mutual, American International Group, and American Family Insurance Group.
State Farm has expanded into the financial services arena, such as banking and mutual funds.
The bank opened in May 1999 and is operated by State Farm Financial Services, FSB, a subsidiary of State Farm Mutual Automobile Insurance Co. These are separate from its insurance products. State Farm Bank does not have branch offices. Its regular banking services, which include checking and savings accounts, certificates of deposit, and money market accounts, are available to consumers countrywide via the Internet or over the phone, and through agents. Home mortgages are available countrywide over the phone or through agents.
In the 1950s, State Farm held a contest among the agents, to come up with ideas to expand the State Farm business. Robert H. Kent, a State Farm agent in Chicago, came up with the idea of providing auto loans to existing policyholders. Robert H. Kent was friends with a local bank president at LaSalle NW, and the two teamed up to pilot the auto finance program. State Farm liked the idea so much that it was rolled out to all the agents. Robert H. Kent received royalties on the program for 20 years. This event created the first marketing partnership between insurance companies and banks.
State Farm was founded in 1922 by retired farmer George J. Mecherle as a mutual automobile insurance company owned by its policyholders. The firm specialized in auto insurance for farmers and later expanded services into other types of insurance, such as homeowners and life insurance, and then to banking and financial services.
The State Farm jingle ("Like a good neighbor, State Farm is there") was written by American songwriter Barry Manilow in 1971. A cover was released by Weezer in 2011. State Farm's first commercial jingle was created for The Jack Benny Program in the 1960s.
As of December 2017, State Farm had 70,000 employees and 19,000 agents. February 2014 figures show the group servicing 80 million policies in the United States and Canada, of which over 44,000,000 are for automobiles, 27,000,000 are for fire, 7,000,000 for life, and more than 2 million bank accounts.
Michael Tipsord is Chairman and CEO of State Farm Mutual Automobile Insurance Company, and president and chief executive officer of State Farm Fire and Casualty Company, State Farm Life Insurance Company, and other principal State Farm affiliates.
In 2014, the company sold its operations in Canada to Desjardins Group, which is continuing to use the State Farm name. Canadian policies were transferred to be underwritten by Desjardins Group on January 1, 2015. The State Farm brand continued to be used for agents and marketing until 2018. In 2018, State Farm Canada was officially rebranded to Desjardins Insurance through Desjardins Insurance Agents. The whole transition will be completed by December 31 in 2019.
The State Farm interlocked red tri-oval logo was created in the mid-to-late 1940s and later updated in 1953. For nearly 60 years, this design was critical to its brand image.
On December 23, 2011, State Farm decided to transform its interlocked tri-oval logo to a contemporary logo to showcase the company’s core service offerings of auto, fire, and life. The new logo was introduced January 1, 2012, in celebration of the company’s 90th anniversary. It consists of a simple three-oval design adjacent to the State Farm wordmark. According to Pam El, Marketing Vice President at State Farm, a change in image was needed to employ a bolder presence that could compete in today’s digital world.
|George J. Mecherle||1922–1937(14)|
|Edward B. Rust, Sr.||1970–1985(14)|
|Edward B. Rust, Jr.||1985–2015(29)|
- State Farm Fire and Casualty Company
- State Farm Life Insurance Company
- State Farm Life and Accident Assurance Company (NY/CT/WI)
- State Farm County Mutual Insurance Company of Texas (TX auto)
- State Farm Mutual Insurance Company of Texas (TX preferred auto)
- State Farm Indemnity Company / State Farm Guaranty Insurance Company (NJ auto)
- State Farm General Insurance Company (CA home)
- State Farm Florida Insurance Company (FL home)
- Dover Bay Specialty Insurance Company
- State Farm Lloyds (TX home/commercial)
- State Farm Bank, F.S.B.
- State Farm Investment Management Corp. (SFIMC)
- State Farm VP Management Corp. (SFVPMC)
- State Farm International Service, Inc.
- State Farm Associate's Funds Trust
- State Farm Mutual Fund Trust
- State Farm Investor Services (Canada) Co.
- State Farm Finance Corporation of Canada
- SF Insurance Placement Corporation of Canada
- Insurance Placement Services, Inc.
- State Farm International Life Insurance Company Ltd.
- Plaza One Realty Co.
- State Farm Guaranty Insurance Company
- State Farm Variable Product Trust
- Amberjack Ltd. (Real Estate)
This section needs expansion. You can help by adding to it. (June 2008)
Marketing and promotionsEdit
This commercial structure is from State Farm's "Get to a Better State" campaign that premiered in June 2011, with an increased spending budget. As a result, State Farm’s brand awareness and favorability has gone up considerably. This campaign focuses on making humor out of unfortunate problems that are commonly faced. These commercials then make light of the situation by demonstrating how easy it is to contact an agent and correct the problem that has occurred. Each of these commercials follows a similar structure. A group of one to three people find themselves in an unfortunate situation. Someone in the group will then call on their State Farm agent by singing the jingle “like a good neighbor, State Farm is there”. A State Farm agent will then appear and help the group out with their problem. There are a few commercials that deviate from this structure, but still follow the same ultimate pattern.
State Farm also has commercials beginning with the words "State of..." and another word describing the certain commercial. One notable commercial shows a man awake at 3:00 in the morning on the phone with a State Farm representative. This certain commercial begins with State of Unrest. The man's wife sees him talking on the phone in a secretive manner. She is suspicious and asks who is on the phone, to which her husband says: "It's Jake from State Farm". The man's wife then takes the phone and asks, "What are you wearing, 'Jake from State Farm?'", to which the agent responds in a timid way, "Uh, khakis". Still believing he's a female, the wife says, "She sounds hideous", where the husband replies, "Well she's a guy, so…" In May 2015, a variation of State of Unrest premiered, starring The Coneheads from Saturday Night Live, with Dan Aykroyd and Jane Curtin reprising their respective roles as Beldar and Prymate. This started an ad campaign with that later added Laraine Newman as Connie.
In his very first commercial with NBA star Chris Paul, Oscar Nunez showed extreme disrespect for victims of 9/11 by saying, "Let's Roll."
In late 2014, State Farm released a critically acclaimed commercial showing a man (played by Justin Bartha) who says that he will "never" do something (such as getting married, having kids, moving to the suburbs, and buying a minivan), only to do all of those. At the end of the commercial, he admits that he is "never letting go." The commercial is based on the saying "never say never" and how people say that they will "never" do something, only to do it anyway.
The Hoopers is a series of State Farm commercials focusing on a family, including NBA players Chris Paul playing the father, DeAndre Jordan playing the mother, Kevin Love playing the son, Kevin Garnett playing the grandfather and Damian Lillard playing the baby. Additionally, a State Farm agent plays the role of a helpful neighbor in the set of commercials.
The commercial series currently has four commercials made, including "Robbed","Dropping Dimes", "No Good Clipper" and "The Hawks and The Hornets".
- State Farm Stadium, a multi-purpose football stadium in Glendale, Arizona and home of the Arizona Cardinals of the National Football League.
- State Farm Arena (Atlanta), a multi-purpose arena and home of the Atlanta Hawks of the National Basketball Association.
- State Farm Center, a multi-purpose arena and home of the University of Illinois at Urbana–Champaign men's and women's basketball teams.
- State Farm Arena (Hidalgo, Texas), a multi-purpose complex that features concerts and sports events, located in Hidalgo, Texas.
- State Farm Classic, a golf tournament for professional female golfers that is part of the LPGA Tour.
- State Farm Hall, a classroom building at Illinois Wesleyan University in Bloomington, Illinois.
- State Farm Hall of Business, College of Business Building at Illinois State University in Normal, Illinois, since 2010.
- State Farm Holiday Classic, an annual high school holiday basketball tournament held in Bloomington-Normal, Illinois each December.
- State Farm Lone Star Showdown, moniker for all varsity athletics competitions between Texas A&M University and The University of Texas at Austin.
- State Farm Research and Development Center, a research extension of State Farm Insurance located at the University of Illinois at Urbana-Champaign.
- State Farm Sales Lab, a clinical sales training center at the University of Central Missouri, where the national State Farm Marketing and Sales Competition is held.
- State Farm Computer Lab, a computer networking and software development room at the Mansfield University of Pennsylvania, where State Farm has sponsored the purchase of the majority of the equipment.
- State Farm Territorial Cup Series, moniker for all varsity athletics competitions between the University of Arizona and Arizona State University.
- NBA Cares Charity Challenge presented by State Farm, a charity program hosted by the NBA.
- State Farm All-Star Saturday Night, skills competitions that feature NBA players.
- League of Legends Championship Series, the North American branch of the League of Legends Professional League
State Farm Safety Patrol – State Farm, in partnership with several U.S. highway authorities, operates a service called the State Farm Safety Patrol which provides free roadside assistance to stranded motorists on participating highways. When a driver calls the designated telephone number for the Safety Patrol, they will respond and provide the following services: fuel refills; radiator refills; engine oil refills. Most Safety Patrol personnel are also CPR and Automated External Defibrillator certified. They work to reduce accident rates, minimize the duration time of incidents, assist disabled drivers and remove road debris. Turnpikes which currently participate include, Florida's Turnpike in the State of Florida and the Pennsylvania Turnpike in the Commonwealth of Pennsylvania. In Ohio, State Farm–branded safety patrol vans service major highways in the Cincinnati, Toledo, Cleveland, Columbus, Dayton, Akron, and Canton areas on weekdays.
Controversies and criticismEdit
Florida threatened withdrawalEdit
This section needs expansion. You can help by adding to it. (March 2009)
In early 2009, the State Farm Florida subsidiary, the state's largest insurer, threatened to withdraw from writing property insurance business in Florida after state regulators refused to approve a 47% property rate increase. State Farm said that, in Florida, it had paid out $1.21 million USD in claims for every dollar in premiums since 2000. Several other home insurers have pulled out of Florida as well; many homeowners are now using the Citizens Property Insurance Corporation run by the state government. State Farm has since decided to remain in Florida, although with a reduced amount of property policies.
In 2010, State Farm and Renaissance jointly formed DaVinci Reinsurance Ltd. which insured more than 3.5 million homes in 2010.
A 2007 investigation by CNN reported that major car insurance companies, including State Farm and Allstate Insurance, are increasingly fighting claims from those alleging injury. Some injured parties argued these were unfair practices. State Farm and Allstate have denied these allegations. This followed on the heels of criminal investigations by the states of Louisiana and Mississippi, alleging that State Farm had wrongly denied claims stemming from Hurricane Katrina. Plaintiff's attorney Richard F "Dickie" Scruggs later pleaded guilty in March for his role in trying to pay Judge Henry Lackey of Mississippi a $50,000 USD bribe for a favorable ruling in a related case involving a $26.5 million USD settlement after Hurricane Katrina.
In 1993, Todd Hindin filed a lawsuit against State Farm for allegedly keeping a list of prominent Jewish lawyers referred to within State Farm as the "Jewish Lawyers List". Any claims made by clients of these attorneys were automatically forwarded to State Farm's fraud unit, purely on the basis of the religion and national origin of the lawyers. These claims would then be neither settled nor paid. State Farm initially claimed that this was not a matter of discrimination, but of coincidence. However, Dr. Frank Taylor (an experienced economist on retainer for the Appellants) discovered that despite the fact that the population of the states involved had Jewish populations between 2-5% of the total population, the list was composed of nearly 80% religiously or ethnically Jewish lawyers. Individuals who had worked for State Farm, including former Divisional Claim Superintendent Ron Middler, testified that the list was indeed used to discriminate against ethnic minorities. State Farm paid out $30 million to Todd Hindin and his clients for discrimination on the basis of religion and national origin.
Documents that Hindin uncovered would assist in another case in 2003, Campbell v. State Farm, in which State Farm had to pay out $145 million in punitive damages after acting in bad-faith. State Farm had refused to pay damages to the families of two individuals who were victims in a car accident that Campbell was responsible for, despite originally informing Campbell and his family "that their assets were safe, that they had no liability for the accident, that [State Farm] would represent their interests, and that they did not need to procure separate counsel."
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