The insurance industry is facing a plethora of issues as companies struggle to bridge the talent gap, cover increasing costs of operation and implement the latest digital technologies. Despite these challenges, State Farm remains the industry leader dedicated to its customers.
The company’s customer-centric approach is embodied in the mission statement that declares State Farm’s purpose is ‘to help people manage risks of everyday life, recover from unexpected and realize their dreams.’Â
Besides placing the client at the core of all company’s activities, the mission statement also hints at the services State Farm can offer to potential customers that can help them overcome adversity and achieve their dreams.
Moreover, the need to serve and assist is the driving force behind all company’s actions. Let’s debunk State Farm’s mission statement and examine the ideas it embodies.
| Name | State Farm Mutual Automobile Insurance Company |
| Founded | June 7, 1922, |
| Headquarters | Bloomington, Illinois, United States |
| Industry | Insurance, financial services |
| Market cap | State Farm is a privately owned company |
State Farm Mission Statement – In-Depth Analysis
State Farm Automobile Insurance Company turned a hundred on June 7, 2022. Its age is a testament to the quality of its services. Today, the company is the largest auto, property, and casualty insurance provider in the US, with a net worth of $143.2 billion.
The parent company owns more than twenty subsidiaries, including State Farm Bank, State Farm Mutual Fund Trust, and State Farm International Life Insurance Company.
George J. Mecherle, the company’s founder and first CEO, started State Farm as a mutual car insurance company owned by the policyholders. The company’s business model is still the same even though its range of services expanded. Its shares remain unavailable to public market investors.
State Farm’s primary purpose is to serve policyholders, and the mission statement outlines what the company can do to improve the lives of its customers. It encompasses the following ideas:
- Risk management of everyday life
- Making the dreams come true
- Dealing with unexpected challenges
However, the statistics show that only 39% percent of State Farm’s employees are motivated by the company’s mission.
Managing the Risks of Everyday Life
 ‘We empower people to be good neighbors and protect what matters most.’
This statement by the company’s chairman, president, and CEO, Michael Tipsord, is rooted in the company’s mission.
Each of State Farm’s services helps clients anticipate and overcome potential hardships. The company’s services include the following types of insurance policies:
- Car, motorcycle, off-road vehicle, and boat insurance
- Motorhome and travel trailer insurance
- Home and property
- Life insurance
- Liability insurance
- Small business insurance
- Health insurance
In addition, State Farm offers banking and investment services that can enable its clients to take a home loan, set up a savings account, create a mutual fund, or plan their retirement.
So, besides providing security in the form of insurance policies, State Farm also helps its individuals and business achieve financial security.
Thousands of photographers, florists coffee and tea shops are already using State Farm’s Business Owner Policies because they can adjust them to their company’s requirements.
Overcoming the Unexpected
This element of the mission statement refers to all State Farm’s services. Insurance policies protect the company’s clients if they encounter a health problem or if their vehicle breaks down unexpectedly.
The personal and business banking services that include vehicle loans, credit cards, and money market accounts ensure that State Farm’s clients have the financial stability they need to deal with problems they might encounter in their private or professional lives.
State Farm’s car insurance and liability policies are more affordable than those provided by Allstate, Geico, or other competitors. Consequently, competitive pricing also helps policyholders deal with the issues they can’t anticipate.
The company has a network of more than 18,000 agents at nearly 350 locations. Each agent is dedicated to helping potential customers make informed decisions. Also, State Farm doesn’t take long to process claim requests, as most policyholders receive offers within 30 to 45 days.
Making Dreams Come True
The company provides a wide array of services that can help its clients achieve their dreams. So, whether you’re dreaming about getting a new car, a college education for your children, want to set up a retirement fund or need a loan to start a business, State Farm might have a solution for you.
Moreover, small businesses can apply for equipment loans with low-interest rates, while individuals can use the company’s education savings services to avoid paying for student loans.
This part of the company’s mission refers mostly to its financial services, but it also hints at its efforts to support members of different communities. Currently, State Farm offers several community grants, including:
- State Farm Teacher Assist
- Good Neighbor Citizenship Company Grants
- State Farm Neighborhood Assist
- State Farm Education Assist
- State Farm Companies Foundation
The company’s sponsorship programs support a wide array of organizations that share the same goals.
State Farm – Vision Statement
The company’s goals for the future are clear and well-defined. State Farm’s mission and vision are similar because they underline the customer’s value for all company’s activities.
However, the vision statement also reveals the direction the company wants to take going forward.
State Farm plans ‘to be the customer’s first and best choice in the products and services we provide. We will continue to be the leader in the insurance industry, and we will become a leader in the financial services arena. ’
A closer look at the statement discloses the following elements:
- Maintaining the leading position in the insurance industry
- Strengthening the company’s position in the financial services industry
- Focus on the quality of services and products
- Caring for communities and the environment
Nonetheless, the statement doesn’t indicate which methods the company intends to use to achieve its goals. Let’s go through the key components of State Farm’s vision statement.
Keeping the Position of Insurance and Financial Services Industry Leader
Banking and investment options are a relatively recent addition to State Farm’s services. Despite expanding its range of financial services over the last two decades, the company recognizes that this area of its operations still has room for improvement.
On the other hand, State Farm is aware of its dominant position in the insurance industry, and its goal is to remain the nation’s largest car insurance provider. Even though car insurance rates are rising, it’s safe to assume that company’s rates are going to stay below the national average in 2023.
Improving the Quality of Products and Services
Maintaining high customer satisfaction ratings and expanding its pool of 85 million active policies remain the company’s priorities. State Farm intends to achieve these goals by striving to improve the quality of its products and services.
The Drive Safe & Save program developed in partnership with Ford or Steer Clear, safe driver discounts show the company’s intention to create products that increase the safety of its clients and present them with saving opportunities.
The full range of financial services isn’t available in all states, and improving the accessibility of its loans and savings options remains one of the company’s priorities.
Giving Back to Communities
State Farm has always been a neighborhood-oriented company. Its grants and scholarships support students and educators from diverse backgrounds.
State Farm’s partnerships with organizations from LGBT, African American, and Asian American communities promote workforce development and strengthen relationships within these communities.
The company donates funds to organizations like Habitat for Humanity, Raza Development Fund, and the American Red Cross that provide affordable housing or improve the readiness of impoverished neighborhoods to deal with natural disasters.
State Farm also participates in the NBA Cares Charity Challenge and numerous other charity programs hosted by its partners.
Caring for the Environment
The company’s Green Mission is the proclamation of its plans to reduce the greenhouse emissions it generates by 50%. State Farm intends to achieve this goal by 2030.
Its focus in the future will be on the implementation and promotion of renewable energy sources and the development of sustainable operations. The company also plans to continue its recycling and plastic reduction efforts.
Hence, caring for the environment and promoting sustainable practices are the core of State Farm’s vision.
State Farm – Core Values
The company’s neighborly character is instrumental to all aspects of its operations. Consequently, its efforts are guided by the principles that champion the spirit of fairness, respect, and leading by example.
State Farm’s mission and vision are based on these values.
- Mutual trust
- Financial strength
- Integrity
- Quality services and relationships
Over 60% of the employees stated they’re not inspired by the company’s values, indicating other reasons why they remain loyal to their employer. Let’s take a quick look at State Farm’s core values.
Financial Strength
Accurate reporting, protection of intellectual property, and safeguarding client information are some of the methods State Farm utilizes to ensure its financial strength. Its products and services are tailored in such a manner that they can help customers achieve financial stability.
Mutual Trust
The company nourishes a culture of trust among its employees and condemns all forms of workplace discrimination or harassment. This translates to all State Farm’s client interactions and enables the company to gain the trust of millions of customers.
Quality Relationships and Services
State Farm builds lasting relationships with its clients through mutual trust. The company approaches each customer in the spirit of fairness and provides high-quality services that serve as the foundation of its relationship with its clients.
Integrity
All agents are expected to act with integrity and reject gifts or bribes. Moreover, the company’s employees should do everything in their power to avoid conflicts of interest and adhere to anti-money laundering laws.
Key Takeaways
- State Farm’s purpose is to help its clients avoid risks and get their lives back on track after an unexpected accident
- Claiming the top spot in the financial services sector is one of the company’s main priorities in the future
- Providing support for disadvantaged communities and acting as a good neighbor is the core element of State Farm’s mission
- The company’s long-term strategy includes the further development of driver and vehicle safety programs
Frequently Asked Questions – State Farm Mission Statement
Question: Does State Farm Have a Motto?
Answer: ‘Like a Good Neighbor, State Farm is There’ has been the company’s motto since 1971.
Question: Which NBA Team Plays in the State Farm Arena?
Answer: The State Farm Arena in Atlanta, Georgia, is the home of the Atlanta Hawks.
Question: Can I File Too Many Claims on State Farm Insurance Policy?
Answer: The company doesn’t limit the number of claims policyholders can file. However, it reserves the right to terminate a policy if a policyholder files too many claims in a year.
Question: Is Changing the State Farm Agent Difficult?
Answer: Customers can have a different agent assigned to each new insurance policy they acquire.
Question: What Are the Chances of State Farm Declining My Claim?
Answer: The company was criticized for rejecting legitimate claims in the last few years. Despite this, the chances of State Farm denying a legitimate claim remain relatively low.
Other Companies with Similar Values
State Farm isn’t an undisputed insurance industry leader, as companies like Progressive, Geico, or Allstate offer a broad spectrum of insurance policies with competitive rates.
Like State Farm, these companies place the customer at the center of their mission and vision as their main goal is to provide services that benefit their clients. State Farm is also competing with companies like PayPal or established US banks for dominance in the financial services sector.
Here are several companies that share some of State Farm’s core values:
- Geico – The company’s goal is to provide drivers access to affordable auto insurance. Geico’s high customer satisfaction rating serves as an indicator of the quality of its services.
- Progressive – The mission statement emphasizes the company’s dedication to its customers, as its goal is to reduce the trauma associated with accidents.
- Allstate – State Farm and Allstate have similar missions since both companies want to help their customers ‘achieve their hopes and dreams.’
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References
- https://www.valuepenguin.com/state-farm-vs-geico-vs-allstate-vs-progressive-vs-farmers-car-insurance
- https://www.atmmarketplace.com/news/state-farm-exiting-from-banking-us-bank-to-take-accounts/
- https://www.forbes.com/advisor/car-insurance/state-farm-car-insurance-review/
- https://media.ford.com/content/fordmedia/fna/us/en/news/2022/02/15/state-farm–and-ford-team-up-to-introduce-usage-based-insurance-.html
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