Strengths State Farm is one of the top ten global insurance companies based on revenue. It is one of the largest companies, including the largest in Property & Casualty mutual companies in the world. State Farm insures more autos and homes than any other company in the US, with over 20% market share.
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 …show more content…
This requires the Federal Government to cover 90% of terrorism related insurance losses, with a cap of $100 billion. (Cahill, n.d.)This allows insurance companies to offer coverage in Commercial P & C for terrorism related incidents. This has allowed State Farm to offer peace of mind to its Commercial consumers. This act is set to expire on December 31, 2014. If this act is extended, it will allow for continues growth in the Commercial Insurance industry.
The US population of baby boomers in aging, it’s estimated that there are about 76 million boomers in the US, and by 2030 about 20% of the population will be over 65 year old. This is estimated to have over $20 trillion dollar in retirement savings at play. In 2012 it was said that about 40% of these boomers do not have plans set in place for their money. (Marketline, 2014)This opens a big door for companies such as State Farm who are in the financial industry. This will also bring increases to Health Care which could be favorable for State Farm’s Health Insurance …show more content…
One of reasons accredited with as to why State Farm has continue to come out above its competitors, such as All State, it’s due to its Mutual status. On paper, Allstate seems to be the company most closely modeled like State Farm. The one difference, State Farm is mutually owned, meaning it’s owned by its policy holders. Meaning, whatever State Farm does to please its customers, it also pleases its owners. Allstate, for example, is a stock company owned by public shareholders. This is one the biggest difference between coming out on top and not. A State Farm’s spokeswomen releases this statement, “Because we are a mutual company, we don 't have to have to sacrifice the long-term interest of our customers to accommodate the short-term interests of our stockholders. (Cahill, n.d.)” This allows State Farm’s selling points to remain as they always have been, keeping a high reputation for outstanding
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 …show more content…
This requires the Federal Government to cover 90% of terrorism related insurance losses, with a cap of $100 billion. (Cahill, n.d.)This allows insurance companies to offer coverage in Commercial P & C for terrorism related incidents. This has allowed State Farm to offer peace of mind to its Commercial consumers. This act is set to expire on December 31, 2014. If this act is extended, it will allow for continues growth in the Commercial Insurance industry.
The US population of baby boomers in aging, it’s estimated that there are about 76 million boomers in the US, and by 2030 about 20% of the population will be over 65 year old. This is estimated to have over $20 trillion dollar in retirement savings at play. In 2012 it was said that about 40% of these boomers do not have plans set in place for their money. (Marketline, 2014)This opens a big door for companies such as State Farm who are in the financial industry. This will also bring increases to Health Care which could be favorable for State Farm’s Health Insurance …show more content…
One of reasons accredited with as to why State Farm has continue to come out above its competitors, such as All State, it’s due to its Mutual status. On paper, Allstate seems to be the company most closely modeled like State Farm. The one difference, State Farm is mutually owned, meaning it’s owned by its policy holders. Meaning, whatever State Farm does to please its customers, it also pleases its owners. Allstate, for example, is a stock company owned by public shareholders. This is one the biggest difference between coming out on top and not. A State Farm’s spokeswomen releases this statement, “Because we are a mutual company, we don 't have to have to sacrifice the long-term interest of our customers to accommodate the short-term interests of our stockholders. (Cahill, n.d.)” This allows State Farm’s selling points to remain as they always have been, keeping a high reputation for outstanding