Insurance is something that every individual should have in one way or another. Insurance is a form of risk management where the insured party has the authority to transfer the cost of the potential loss from an incident to another party in exchange for a premium. A premium is a document detailing the terms and conditions of the insurance contract. Insurance companies issue policies that protect individuals, business and other parties from the risk of a loss. Some insurance policies are a requirement of some companies for their employees. However, many policies are purchased to make the policy-holder’s feel at ease. Whether its auto, medical, life, liability, disability, or any other form of insurance there are, having the right kind of insurance is an important factor of any great financial plan. There are many different types of policies that insurance companies offer such as auto insurance, motorcycle, ATV, umbrella, homeowner’s, renters, condo, co-op, RV, life, boat, personal watercraft, flood, mobile home, overseas, commercial auto, business, identity protection, snowmobile, collector car, and even pet insurance. There are also many different insurance companies out there who offer some, if not all, of those insurance policies. Three popular and widely known insurance companies are Allstate, Geico, and State Farm. Each of them have their own specific target markets and have to work each day to attract new and existing customers. The Allstate Corporation was founded in 1931 and became publically traded in 1993. They’re the third largest auto insurer in the United States. The company has over 70,000 employees and provides service to approximately 16 million households. 57 percent of their employees are women and 32 percent are from minority groups. 40 percent of the managers are women and 24 percent are from one of five minority groups as well. At the end of 2012, the company had $126.9 billion in total assets and Forbes listed them at number 92 for largest companies in America. Geico is the second largest auto insurer in the United States. Geico insurance was founded in 1936 by Leo and Lillian Goodwin. Geico stands for Government Employees Insurance Company because it was originally set up for federal employees and enlisted military officers. After the first year, Leo and Lillian had insured 3,700 policies and hired 12 employees. Throughout the years, the company became extremely successful with only State Farm standing in their way of being on top of the leaderboards. Today, Geico’s assets have hit a record of $28 billion and they support 30,000 employees with offices in 14 locations throughout the country. State Farm Insurance is the largest auto insurer in the United States. It was founded in 1922 by George J. Mecherle, a retired farmer. State farm started as a mutual automobile insurance company owned by its policy holders and was originally specified for farmers. The company later branched out to insuring all types of workers and later expanded its service into other types of insurance such as homeowners and life. Today, State Farm has more than 65,000 employees, more than 18,000 agents, and approximately 81 million insured policies throughout the United States as well as Canada. Throughout this past year in 2014, insurance companies have incorporated many new trends into their systems. Insurance companies are making the transition to paperless statements as well as becoming more automated. A common trend amongst customers from many different insurance agencies is that they have adapted into a digital world. An insurance journal reported that many consumers are using the internet to obtain insurance quotes and the numbers have been increasing steadily over the past few years. In 2010, there were 38.8 million quotes submitted online which was a jump from the 21% in 2009. J.D. Power and Associates, A Global Market Research Company, took a survey to determine the connection between the consumers experience and their level of satisfaction with the company. J.D Power studied customers who had no interaction, interaction with an agent only, interaction with an agent who uses emerging technology, interaction with an agent who uses traditional technology, and interaction with a non-agent only. The survey results showed that consumer who had interacted with an agent who used emerging technology had the greatest overall experience with the company.
Aside from transitioning to online services, insurance companies are looking for their agents to cross sell to existing policy holders as well as sell coverages to new customers to increase revenue. The insurance journal also states that revenue per employee should be $125,000 or higher.
The majority of insurance companies look to target their policies to all types of people. Whether you drive a car, own a home, ride a motorcycle or even walk down the block, insurance is something that is a recommended and sometimes a necessary asset to have. Allstate targets a wide range of consumers for their policies. They offer high school discounts, family discounts, specific job field discounts such as marine and other special government services, and also senior citizen discounts. Allstate states that they are an ideal company for “brand- sensitive customers who prefer local personal advice and service.” Geico specifically targets males and females 24-64 because they appeal to customers with humor and wit. Their use of their widely known gecko and other comedic characters draw in a specific audience. State Farm aims to target the younger generation which they consider to be customers in their 20’s and 30’s. State Farm has customers from all different age groups but they recently stated that they want more young people and have been working on ways to attract them.
Allstate, Geico and State Farm attract new and existing customers in many different ways. Allstate feels that their company differs from other insurance companies because they have “unique customer value propositions.” Allstate also makes a note that they are adaptive to customer needs and they allow customers to do business in whichever manor they choose such as in person, over the phone or online. Allstate customers have said that they enjoy the attention and advice offered by Allstate because they “want their insurance company to help them best use their hard-earned money to protect what matters most to them, and help them recover from unexpected losses.”
Allstate also has a program called “Safe Driver Rewards.” The program is also known as a good driver discount. Allstate found a way to reduce the costs of insurance to those who deserved it by driving safely. It is an extremely successful marketing tactic on Allstate’s part because they’re indirectly encouraging customers to drive safely by offering a discount. Allstate’s safe driving program offers rewards such as bonus checks, where the driver can receive two safe driving bonus checks a year and also deductible rewards where a driver can get $100 off their collision deductible the day they sign up plus an additional $100 off each year they demonstrated safe driving. This reward maxes out at $500.
Allstate also demonstrates social responsibility through financial resources, time and leadership. Their efforts help their current customers feel connected and happy with Allstate and also it attracts new customers because they feel they have the opportunity to be a part of a great contributing domain. Allstate supports the NCAA, National Collegiate Athletic Association, where over 400,000 student-athletes compete in 89 championships in 23 sports across three divisions. Allstate is also the official home of Major League Soccer and they sponsor College Football. Allstate is involved with 81 schools across the country through their Good Hands Field Goal Net Program. Their Good Hands logo appears on the field goal nets and every time a field goal is kicked into one, Allstate donates to the scholarship fund at that school. According to the National Collegiate Athletic Association, Allstate has donated over $3.4 million to scholarships through this event alone. Geico spends more money than its competitors on advertising. Geico attracts their customers with their clever gecko spokesman. The charming gecko is the face of Geico and his character alone has worked his way into the hearts of many insurance customers. Aside from their clever marketing tactics, Geico offers similar discounts as Allstate does to attract new customers. Drivers who have gone at least five years total without getting into an accident, are eligible to receive an additional 26% off of their premium. A Driver who practices safety by always wearing their seat belts as well at their passengers, are eligible to receive 15% off specific parts of their premium. Attending defensive driving can allow a customer to save an additional 10% off of their premium. Teenagers who are on their parent’s policy can earn their parents a 15% discount by obtaining an 85 average in high school. Geico, as well as Allstate, offer 15% discounts to men and women in the service. Geico is also a sponsor of many fundraising organizations. Geico sponsors Soldier Ride which is a four day 25 or 50 mile cycling event that supports the Wounded Warrior Project. The event also provides special bikes for wounded veterans so that they can also participate. Geico also supports other military organizations too such as the Vietnam Veterans Memorial Fund and the Armed Services YMCA. Being that State Farm is the number one insurer on the market currently, existing customers continue to be loyal because they already have the most successful insurer out there. New customers are attracted to switch to State Farm so that they can be a part of the most successful agency. State Farm is trying to draw in more young customers even though they already are the largest car insurance company for young adults. They are developing ways to attract young customers by making anything in the insurance world, including student loans and college-saving programs, more accessible. State Farm also gives millions of dollars to programs that encourage safe driving by teens. There are many reasons why a customer might choose Geico over Allstate. Or State Farm over Geico. Or even Allstate over Geico and State Farm. A majority of Allstate customers like that they can go to the nearest Allstate agency and directly talk with their agent. Geico on the other hand, does not have this feature because they have something called a direct insurance writer. A direct insurance writer means that Geico provides insurance through the company rather than through local agents. Allstate has a program that helps prevent a policy holder’s rates from increasing drastically after an incident called accident forgiveness. This program has generated many loyal Allstate customers because the other insurance companies don’t have anything similar. In regards to Allstate’s rates, they are considerably higher than Geico and State Farm. Customers may be persuaded to lean more towards Geico and State Farm because their rates are cheaper. State Farm caters to a younger target market so customers who fall within the 20’s-30’s age group might be more inclined to join State Farm than Geico or Allstate. Although Allstate, Geico, and State Farm are the three most successful insurers, there are still many ways they can improve how they market their products and services. Today’s society is a visual society. Consumers are driven by ads and commercials. These advertisements are the first impression a consumer usually has with a service or product and it is important for the companies to make sure that they’re appealing in the right ways. Geico and State Farm have great marketing techniques as far as commercial advertising is concerned. The Geico gecko and State Farms famous singing “like a good neighbor State Farm is there” commercials have had consistent positive reviews. Allstate on the other hand, has put out many commercials that have left a sour taste with consumers. Customers generally feel that their “Mayhem” campaign, where they showed a guy who posed as the act of mayhem in many different situations that would be considered an insurance claim. Some commercials included “Mayhem” driving his car into a pool, jumping off of buildings, and other activities that had consumers feeling very uncomfortable. Consumers felt that the ads were obnoxious and far-fetched. For Allstate, I think they need to branch away from their drastic attempt at a comedic stunt and focus more on capturing the hearts of the consumers in ways that Geico and State Farm have done. I feel that State Farm should market their products and services around college campuses or even hold a guest speaker event in schools since they are looking to expand their younger customer clientele. Geico should advertise more about how easy it is to get a free quote online and also get insured online since they don’t have agents who are available to talk to customers face to face. Allstate, Geico, and State Farm should advertise the different types of discounts that they offer and for what reasons. If each insurance company made it clear that they offer discounts for safe driving and students, consumers would generally be more interested. The companies should show how they compare to other insurance companies instead of just broadcasting how great their agency is. Insurance is something that is very useful tool to have. There are many different insurance companies out there who compete daily with one another to find new customers to insure. When choosing an insurance company, it is important to understand what you’re getting from them. Different companies have different techniques which will affect how they work for you. Two important concepts in life are to stay safe and save money and insurance companies are in business to do just that. Sometimes, knowing that you are insured by an insurance company that is by your side when a disruption occurs can make all the difference.

Bibliography
Allstate. "Get Rewards with Drivewise®." Auto Insurance Quotes. Web. 1 Nov. 2014.
Compare Now. "Is Your Car Insurance Company Socially Responsible?" Comparenow. Web. 1 Nov. 2014
Forbes. "Allstate Insurance Company." Forbes. Forbes Magazine. Web. 1 Nov. 2014.
Geico. "Get a Quote." GEICO. Web. 1 Nov. 2014.
Insurance Journal. "Insurance Industry Trends for Agencies to Exploit in 2014." Insurance Journal News. Web. 17 Nov. 2014.
JD Power. J.D. Power. Web. 1 Nov. 2014. <http://www.jdpower.com/>.
Millennial MArketing. "State Farm: A Classic Brand Connects With Young Adults (and Everyone Else, Too)." Millennial Marketing. Web. 1 Nov. 2014
NCAA. "Proud Sponsor of the NCAA." NCAA.com. Web. 1 Nov. 2014.
State Farm. "Get Insurance Quotes - Save on Auto Insurance - State Farm®." State Farm. Web. 1 Nov. 2014.
Quotes and Comparison. "Discounts Offered by Geico Car Insurance Company." Insurance Quotes and Comparison. Web. 1 Nov. 2014

--------------------------------------------
[ 1 ]. Allstate. "Get Rewards with Drivewise®." Auto Insurance Quotes. Web. 1 Nov. 2014.
[ 2 ]. Forbes. "Allstate Insurance Company." Forbes. Forbes Magazine. Web. 1 Nov. 2014. .
[ 3 ]. Geico. "Get a Quote." GEICO. Web. 1 Nov. 2014.
[ 4 ]. State Farm. "Get Insurance Quotes - Save on Auto Insurance - State Farm®." State Farm. Web. 1 Nov. 2014.
[ 5 ]. Insurance Journal. "Insurance Industry Trends for Agencies to Exploit in 2014." Insurance Journal News. Web. 17 Nov. 2014
[ 6 ]. JD Power. J.D. Power. Web. 1 Nov. 2014. .
[ 7 ]. Insurance Journal. "Insurance Industry Trends for Agencies to Exploit in 2014." Insurance Journal News. Web. 17 Nov. 2014
[ 8 ]. Allstate. "Get Rewards with Drivewise®." Auto Insurance Quotes. Web. 1 Nov. 2014.
[ 9 ]. State Farm. "Get Insurance Quotes - Save on Auto Insurance - State Farm®." State Farm. Web. 1 Nov. 2014.
[ 10 ]. Allstate. "Get Rewards with Drivewise®." Auto Insurance Quotes. Web. 1 Nov. 2014.
[ 11 ]. NCAA. "Proud Sponsor of the NCAA." NCAA.com. Web. 1 Nov. 2014
[ 12 ]. Quotes and Comparison. "Discounts Offered by Geico Car Insurance Company." Insurance Quotes and Comparison. Web. 1 Nov. 2014
[ 13 ]. Compare Now. "Is Your Car Insurance Company Socially Responsible?" Comparenow. Web. 1 Nov. 2014
[ 14 ]. Millennial MArketing. "State Farm: A Classic Brand Connects With Young Adults (and Everyone Else, Too)." Millennial Marketing. Web. 1 Nov. 2014