State Farm : The Top Ten Global Insurance Companies Based On Revenue
Since the size and rankings of the company is so great it puts State Farm ahead of its peers, such as Vanguard & Northern Trust, in the financial industry. State Farms brand recognition can be accredited to its high market presence, strong agent sales force, satisfied customers with strong loyalty, and options of diversified products.
State Farm’s competitive advantage is hard to beat, the company offers claim handling, bundling of insurance products, financial services, and discounts and incentives for long term customers. State Farms profit has increased, despite large claim payouts. The financial strength of State farm has been rated excellent or higher by major agencies. This increase of profit is expected to grow moving forward.
Weaknesses As the history if underwriting losses goes, State Farm had a trend in loss from $0.9 billion in 2010 to $2.6 billion in 2012. During this time, underwriting was a big player in the trend. The inability to come out of the losses has been a weakness. Starting in 2012 and still continuing today the underwriting guidelines have changed. New technology puts into play different qualifications as well as specific location tools to…