Farmers Insurance in 2011 has begun a new effort to rebrand itself and position itself in the insurance marketplace as an innovator and top notch education and training of its agents and brokers. But Farmer's has a rather storied history as well.
Farmers Insurance History
Farmers Insurance focuses primarily on three specific lines of business: home, auto, and business. Farmers began operation in 1928 and unlike most of its competitors at the time, it paid claims in cash during the Great Depression rather than with IOU's.
Farmer's Insurance was founded in the 1920's by John C. Tyler and Thomas E. Leavey. The two men shared a common dream: providing a high-quality insurance product at a reasonable price. They knew from personal experience that farmers and ranchers experienced fewer risks with their vehicles and were entitled to preferred rates. Tyler and Leavey put up their own money and went farm to farm to gain their first policies. By 1928, they were ready to open for business.
When the devastating Long Beach earthquake hit in 1933, Farmers agents and district managers swarmed to the scene to aid customers and non-customers alike. From the home office in Los Angeles, the call went out immediately: “Pay them. Pay them all.”
By 1940, Farmers had expanded into 19 states, was the leading Auto carrier in the northwest and was providing Auto and Truck insurance to farmers and non-farmers alike. In 1943, Fire insurance was added so that agents could provide coverage for homes and businesses. In the 1950's Farmers became the first company west of the Mississippi to use IBM 705 computers for data storage and retrieval.
In 1961, Farmers became the first major insurance organization to offer a monthly payment plan that wasn’t a finance plan and didn’t charge customers any interest. Later in the decade, we offered Uninsured Motorist coverage and policies providing discounts to drivers between the ages of 30 and 60. We also provided drive-in claims service beginning in 1962.
In July 2009, 21st Century Insurance and Financial Services, based in Wilmington, Del., became a part of the Farmers Insurance Group of Companies. 21st Century Insurance and Financial Services and its affiliates, using the Internet and direct-response marketing channels, market personal auto insurance to consumers in the District of Columbia and all states except Massachusetts.
Farmers Products
Farmers offers standard home and auto insurance plans very similar to its primary competitors in the marketplace. But perhaps where Farmer's differs most, and sets itself apart from others, is with its business insurance suite of products. Farmer's offers diverse products geared specifically to to various sectors of business including the following: auto service and repair, commercial real estate, education and non-pofit, construction/ home building, manufacturing, professional service, restaurant, retail, and others.
These above mentioned products are specifically tailored to meet those specific business needs. On its website,for instance the company specifically adddresses the unique needs of businesses within these identified sectors.
Example: Restaurant
Farmer's says, "From food spoilage caused by equipment breakdown, to employee or customer injuries onsite, you need to know you have the coverage you want when the unexpected happens. Farmers Restaurant Owner’s Package enables you to choose tailored coverage to meet your insurance needs."
Example: Auto Service and Repair
Farmer's says, "From accidents caused by technician errors when servicing customers’ vehicles, or damage to vital automotive tools and equipment, you need to know you have the coverage you want when the unexpected happens. Farmers Auto Service and Repair Business Owner’s Package enables you to choose tailored coverage best suited to meet your insurance needs."
Farmers Marketing: Using Education as a Tool
Beyond using the corporate website as a means to inform and educate potential clients about its polcy offerings, Farmers goes a step further by incorporating education, with a dose of humor, within its televisionand print advertising.
Link: Farmer's Covers Obscure Space Junk Falling on Your Home
You have probably seen Farmer's new television advertising campaign using a well known character actor portraying a University Professor of Insurance who trains new Farmers agents with a unique, humorous, and engaging style. The agressive marketing campaign does appear to be turning heads and giving the company a positive approach in a competitive insurance marketing field at the moment.
Link: Farmer's Wins Award for Best Training Program in the World
Using the "University of Farmer's" approach with Professor Burke is effective for several reasons. The ads show Farmer's priority of educating its agents in customer service and support and show's them as empathetic of customer's needs and desires while using humor to engage clients. It's a very refreshing approach and sets Farmer's apart when GEICO, Progressive, Allstate and others are uisng humor as well to make their points and engage potential clients.
Summary
Farmer's is well-positioned for the 21st century an is currently experiencing sales growth and expansion. Its marketing approach is refreshing and engaging at a time when its is very competitive and diffuclt to set a company apart from the crowd. Look for Farmer's to keep innovating and following its education of agents and consumers alike. In this age of consumer empowerment that tactic will serve Farmers well.
