About Farmers Insurance

 

                   Serving America Since 1928

In 1928, two men shared a dream of providing a quality insurance product at a reasonable price. In the decades that followed we’ve grown and adapted to meet the changing needs of Americans. But one constant has remained: We have an unwavering commitment to uphold our founding ideals to provide industry-leading products and first-rate services to the customers we’re privileged to serve.

Different Eras, Same Exceptional Service

Farmers not only prides itself on helping you plan wisely for the unexpected, but also on helping restore order when it occurs, so you can keep moving along the road of your life’s plans.

In 1959 a Farmers customer wrote us a letter of surprised gratitude when his car battery was replaced just an hour after it was stolen. A letter from a couple in 2002 wrote that their Farmers agent and Claims Adjuster “were exceptional in their handling of our grief, what we needed to do, and helpful in many other ways.” That same year, when Hurricane Rita struck Beaumont, Texas, Farmers sent 300 agents to assess damages while policy holders were evacuated. Farmers also donated $100,000 for the city’s emergency operations center and two megawatt generators that restored power to Beaumont. Whatever year or decade a disaster occurs, you can count on us to be there for you.

Today, the companies comprising the Farmers Insurance Group of Companies make up one of the country's largest insurers of vehicles, homes and small businesses and provide a wide range of other insurance and financial services products.

Farmers is proud to serve more than 10 million households with more than 20 million individual policies across all 50 states through the efforts of over 50,000 exclusive and independent agents and nearly 24,000 employees.

The Farmers Exchanges are three reciprocal insurers (Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange) owned by their policyholders, and together with their subsidiaries and affiliates comprise the Farmers Insurance Group of Companies. Farmers Group, Inc. and its subsidiaries, in their capacity as attorneys-in-fact, provide administrative and management services to the Farmers Exchanges.

Our Story

Our story began with the simple goal of insuring the vehicles of rural farmers but as the world changed, so did we. Visit our timeline for a tour through the decades of Farmers.

 

                             Our Companies

The Farmers Insurance Group of Companies was built to last, with a firm foundation of reliable businesses and a dedication to continual improvement. What began as a simple Car insurance company for farmers has become a multi-line, multi-company insurer and financial services group with a solid reputation for doing the right thing for the right reason.

Who we are

Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange (Exchanges) are inter-insurance exchanges owned by their policyholders and organized under the laws of the State of California. The Exchanges, directly or through their subsidiaries, offer homeowners insurance, auto insurance, commercial insurance, and financial services throughout the United States. Farmers Group, Inc. (dba Farmers Underwriters Association) (FGI) and its subsidiaries, Truck Underwriters Association and Fire Underwriters Association, provide certain administrative services for the Exchanges as the Exchanges’ attorneys-in-fact. The Exchanges do not hold an ownership interest in FGI, and FGI does not hold an ownership interest in any of the Exchanges.

• 2014 Farmers Insurance Exchange Update
• 2014 Fire Insurance Exchange Update
• 2014 Truck Insurance Exchange Update

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  Foremost Insurance Group

  Was founded in 1952 and is headquartered in Grand Rapids Michigan. Foremost is a leader in insuring specialty products such as mobile homes, motor homes, travel trailers and specialty dwellings.
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  The Bristol West Insurance Group

  Became a part of Farmers in July 2007. Bristol West began providing private passenger Auto insurance to Florida residents in 1973, and since that time, it has grown to be a leading provider of liability and physical damage insurance - focusing exclusively on private passenger vehicles across the United States.
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  The 21st Century Insurance Group

  Based in Wilmington, Delaware, became a part of Farmers in July 2009. Using the Internet and direct response marketing channels, 21st Century markets personal auto insurance to consumers throughout the United States.
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  Farmers New World Life Insurance Company

  Headquartered in Mercer Island, Washington, has a proud history stretching back to 1910, when the company started as New World Life Insurance Company. Today, it offers a wide range of life insurance products, from a fully flexible universal life product to traditional term and whole life plans and annuities. Farmers New World Life Insurance Company is a subsidiary of FGI.
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             Truck Insurance Exchange Update

  Los Angeles, April 1, 2014

  Dear Fellow Truck Insurance Exchange Member,

  Truck Insurance Exchange is one of the insurers comprising Farmers Insurance Group. Truck Insurance Exchange along with Fire Insurance Exchange and Farmers Insurance Exchange, and their subsidiaries and affiliates, provide automobile, homeowners, personal umbrella and business owners insurance.

  •  

    Recent Developments

    • Farmers’ nationally acclaimed University of Farmers once again received high recognition placing in Training Magazine's Training Top 10 Hall of Fame as a result of four consecutive years in the Training 125's Top 10. Farmers joins in this honor with other prominent United States organizations. The award continues to reflect our goal of providing the best value and experience for Farmers customers.
    • The e-policy or electronic availability of policy documents has improved customer experience and continued to expand in popularity with our customers in 2013.
    • Farmers All Lines Billing continues to make it easier and more convenient for customers to pay their insurance premiums. Enhancements to farmers.com allow customers to pay multiple policies in a single transaction. Additionally, expanded credit card brand acceptance gives customers more options and freedom of choice.
    • Farmers Insurance Group continues taking steps to expand into the Eastern United States. Eastern expansion will help increase our market presence from coast to coast and spread risks geographically so that a single disaster would have less impact on the Exchange.
  •  

    Community Involvement

    Farmers invests in three core philanthropic pillars: education, safety and civic programs, which serve to benefit a diverse cross-section of Americans. Through its various corporate sponsorships, such as the PGA TOUR's Farmers Insurance Open , Farmers supports a variety of programs that benefit the San Diego community. One beneficiary is "Blessings in a Backpack," a program which distributes backpacks filled with food to low-income school children as they head home for the weekend. Farmers is a key contributor to the Monarch School, a school designed to help homeless children succeed in life through education and other life needs. Farmers is a national sponsor of the American Red Cross Disaster Preparedness Program, where our partnership will educate citizens to be better prepared for future disasters. Within the Safety pillar, Farmers invests in driver safety and fire prevention programs. Examples of civic support include food drives, clothing drives and various Habitat for Humanity programs throughout the country. In 2013, Farmers made a community investment in Joplin, Missouri, helping the city recover from a devastating F5 tornado. Farmers recognized that many families were still without permanent homes two years after the storm. Farmers invested financial and people resources and will continue to do so in 2014. In addition, Farmers helped to author a Disaster Recovery Playbook which will help other communities recover more quickly from future disasters.
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    Privileged to Serve

    For more than eight decades, Farmers Insurance Group has provided its customers with coverage options to help them manage risk and meet their insurance needs. We strive to deliver the best value and experience to every customer we're privileged to serve. Farmers appreciates your business and looks forward to continuing to earn your confidence for many years to come.

  Sincerely,
  Dennis J. Lorch
  Chair of the Board of Governors of Truck Insurance Exchange

  Information About the Exchange

  As a member of Truck Insurance Exchange, we want you to understand the basics of the operation of an Exchange because, as you will see below, you are an owner of the Exchange.

  What is an Exchange?

  An Exchange is an insurance organization which operates in most ways like any other insurance company. But there are a few differences. Truck Insurance Exchange was organized under a provision in the California Insurance Code which allows insureds to “exchange” policies with other insureds. Because the insureds cannot practically be involved in actually issuing policies, collecting premium, paying commissions to agents, etc., they appoint a third party – called an “attorney-in-fact” (AIF) – to perform those duties on their behalf for a fee. That appointment is made through a document called a “Subscription Agreement.” You were asked to sign a Subscription Agreement at the time you applied for insurance with Truck Insurance Exchange and that is how you became a member (aka subscriber).

  Who owns the Exchange?

  You do. Subscribers of the Exchange are owners until such time as they no longer have insurance from the Exchange. Subscribers elect a Board of Governors which supervises the financial affairs of the Exchange and the performance of the AIF in conformity with the Subscription Agreement terms

  Why is an AIF fee paid to Truck Underwriters Association (TUA)?

  Under the Subscription Agreement mentioned above, members appoint TUA to perform certain of the tasks, such as policy issuance and collection of premium, which are involved in running an insurance operation. The Subscription Agreement specifies an AIF fee of 20 percent of premium although TUA has taken less than that amount.

  What is TUA?

  TUA is a wholly owned subsidiary of Farmers Group, Inc. (FGI), which is part of the Zurich Insurance Group, Ltd (ZIG), a Swiss company. Neither TUA, FGI nor ZIG has any ownership interest in Truck Insurance Exchange, which is owned by its subscribers (insureds).

  How was your premium dollar spent by Truck Insurance Exchange in 2013?

  Your premium dollar covers Exchange costs including losses incurred, acquisition costs, taxes, license fees, the AIF fee, and any contributions to surplus. For 2013, the AIF fee was 15.4 percent of the premium dollar, which included the AIF profit of 7.08 percent of the premium dollar for that year. The results of the Exchange were impacted by the large number of catastrophe losses but it still maintained a strong capital base with surplus of $563 million.

  Can the Exchange lose money?

  If premiums collected exceed claims payments and other expenses (including the fee for the AIF), then the Exchange retains those net premium earnings (as contributions to surplus). If premiums are not sufficient to cover claims and expenses, the Exchange will lose money. That’s one reason it is important to build a cushion against possible future losses. The AIF does not participate in claims losses and does not enjoy any net premium earnings. Importantly, subscribers are not responsible for any losses the Exchange might suffer.

  Farmers Financial Solutions, LLC.

  Was created by Farmers in 1999 so that agents could offer customers a wide array of financial products, including mutual funds, variable universal life insurance, and variable annuities.

   

   

   

              Fire Insurance Exchange Update

  Los Angeles, April 1, 2014

  Dear Fellow Fire Insurance Exchange Member,

  Fire Insurance Exchange is one of the insurers comprising Farmers Insurance Group. Fire Insurance Exchange along with Farmers Insurance Exchange and Truck Insurance Exchange, and their subsidiaries and affiliates, provide automobile, homeowners, personal umbrella and business owners insurance.

  •  

    Recent Developments

    • Farmers’ nationally acclaimed University of Farmers once again received high recognition placing in Training Magazine's Training Top 10 Hall of Fame as a result of four consecutive years in the Training 125's Top 10. Farmers joins in this honor with other prominent United States organizations. The award continues to reflect our goal of providing the best value and experience for Farmers customers.
    • The e-policy or electronic availability of policy documents have improved customer experience and continued to expand in popularity with our customers in 2013.
    • Farmers All Lines Billing continues to make it easier and more convenient for customers to pay their insurance premiums. Enhancements to farmers.com allow customers to pay multiple policies in a single transaction. Additionally, expanded credit card brand acceptance gives customers more options and freedom of choice.
    • Farmers Insurance Group continues taking steps to expand into the Eastern United States. Eastern expansion will help increase our market presence from coast to coast and spread risks geographically so that a single disaster would have less impact on the Exchange.
  •  

    Community Involvement

    Farmers invests in three core philanthropic pillars: education, safety and civic programs, which serve to benefit a diverse cross-section of Americans.  Through its various corporate sponsorships, such as the PGA TOUR's Farmers Insurance Open , Farmers supports a variety of programs that benefit the San Diego community. One beneficiary is "Blessings in a Backpack," a program which distributes backpacks filled with food to low-income school children as they head home for the weekend. Farmers is a key contributor to the Monarch School, a school designed to help homeless children succeed in life through education and other life needs. Farmers is a national sponsor of the American Red Cross Disaster Preparedness Program, where our partnership will educate citizens to be better prepared for future disasters. Within the Safety pillar, Farmers invests in driver safety and fire prevention programs. Examples of civic support include food drives, clothing drives and various Habitat for Humanity programs throughout the country. In 2013, Farmers made a community investment in Joplin, Missouri, helping the city recover from a devastating F5 tornado. Farmers recognized that many families were still without permanent homes two years after the storm. Farmers invested financial and people resources and will continue to do so in 2014. In addition, Farmers helped to author a Disaster Recovery Playbook which will help other communities recover more quickly from future disasters.
  •  

    Privileged to Serve

    For more than eight decades, Farmers Insurance Group has provided its customers with coverage options to help them manage risk and meet their insurance needs. We strive to deliver the best value and experience to every customer we're privileged to serve. Farmers appreciates your business and looks forward to continuing to earn your confidence for many years to come.

  Sincerely,
  Dale A. Marlin
  Chair of the Board of Governors of Fire Insurance Exchange

  Information About the Exchange

  As a member of Fire Insurance Exchange, we want you to understand the basics of the operation of an Exchange because, as you will see below, you are an owner of the Exchange.

  What is an Exchange?

  An Exchange is an insurance organization which operates in most ways like any other insurance company. But there are a few differences. Fire Insurance Exchange was organized under a provision in the California Insurance Code which allows insureds to “exchange” policies with other insureds. Because the insureds cannot practically be involved in actually issuing policies, collecting premium, paying commissions to agents, etc., they appoint a third party – called an “attorney-in-fact” (AIF) – to perform those duties on their behalf for a fee. That appointment is made through a document called a “Subscription Agreement.” You were asked to sign a Subscription Agreement at the time you applied for insurance with Fire Insurance Exchange and that is how you became a member (aka subscriber).

  Who owns the Exchange?

  You do. Subscribers of the Exchange are owners until such time as they no longer have insurance from the Exchange. Subscribers elect a Board of Governors which supervises the financial affairs of the Exchange and the performance of the AIF in conformity with the Subscription Agreement terms.

  Why is an AIF fee paid to Fire Underwriters Association (FUA)?

  Under the Subscription Agreement mentioned above, members appoint FUA to perform certain of the tasks, such as policy issuance and collection of premium, which are involved in running an insurance operation. The Subscription Agreement specifies an AIF fee of 25 percent of premium although FUA has taken less than that amount.

  What is FUA?

  FUA is a wholly owned subsidiary of Farmers Group, Inc. (FGI), which is part of the Zurich Insurance Group, Ltd (ZIG), a Swiss company. Neither FUA, FGI nor ZIG has any ownership interest in Fire Insurance Exchange, which is owned by its subscribers (insureds).

  How was your premium dollar spent by Fire Insurance Exchange in 2013?

  Your premium dollar covers Exchange costs including losses incurred, acquisition costs, taxes, license fees, the AIF fee, and any
  contributions to surplus. For 2013, the AIF fee was 13.5 percent of the premium dollar, which included the AIF profit of 7.18 percent of the premium dollar for that year. The results of the Exchange were impacted by the large number of catastrophe losses but it still maintained a strong capital base with surplus of $721 million.

  Can the Exchange lose money?

  If premiums collected exceed claims payments and other expenses (including the fee for the AIF), then the Exchange retains those net premium earnings (as contributions to surplus). If premiums are not sufficient to cover claims and expenses, the Exchange will lose money. That’s one reason it is important to build a cushion against possible future losses. The AIF does not participate in claims losses and does not enjoy any net premium earnings. Importantly, subscribers are not responsible for any losses the Exchange might suffer.