State Farm Losing Market Share in Texas

State Farm losing market share in Texas

State Farm, for decades the number-one auto insurer in the US, may soon be playing GEICO's second fiddle. Also, State Farm has seen drastic declines in market share for home insurance and will likely lose their number 1 spot. Previously, we reported State Farm scamming customers and how consumers are wise to avoid State Farm at all costs.

According to a report by Crain's Chicago Business, State Farm held a market share of 17 percent in 2018 after losing business in the wake of a series of rate hikes, its lowest share in more than two decades. Meanwhile, online insurer GEICO held 13.4 percent of the market.

According to Crain's Chicago Business, if the two companies' average growth rates persist, GEICO will overtake State Farm as the most prominent auto insurer in the nation in 2022.

However, State Farm doesn't intend to go quietly.

A State Farm spokesperson said in a statement, "We remain focused on providing products and services to meet the needs of our clients and have no intention of ceding our leadership position."

Over the last two years, State Farm has lowered insurance rates in most states. Although market share figures for 2019 are not yet available, State Farm spokeswoman Gina Morss-Fisher told Crain's that the latest 2019 data from the company "shows growth in auto policies in a majority of states."

However, these rate reductions came after a series of sharp increases introduced by State Farm in 2016 in response to severe losses in underwriting. The hikes helped return the insurance company of State Farm to profitability, however, according to Crain's, at the expense of market share.

State Farm has lost its leading market share in Arizona, Maine, and Virginia since 2015. In Arizona and Virginia, GEICO took the number-one slot, while, according to Crain's, Progressive took State Farm's place as the top car insurer in Maine.

"STAY AWAY; IT IS AS BAD AS PEOPLE ARE SAYING."

(Posted from a current employee)

I worked at State Farm for more than ten years.

Pros:

It used to be a great company with work-life balance, development, and opportunities. Has decent medical insurance, time off, and a pension.

Cons:

Executive leadership has destroyed the company over the last five years. Employee morale is horrible, and the company is now treating its employees like prisoners or children, depending on what area you are in. CEO seems to have no clue how much damage he has done, and there is no leadership courage, just a bunch of yes men and women desperately trying to hold on to their positions. Most of the top employees have left, and the ones that have stayed are miserable.

Advice to Management:

Wake up! This used to be a great place to work, but clueless, incompetent leadership has destroyed it. After leaving the company, I have seen how bad it has gotten, it may not be too late to right the ship, but it will take courage that is currently lacking. SF will be a case study in MBA programs not to run a successful company if things don't change.