State Farm Subsidiary to Pay $100M for False Katrina Claims

State Farm non-renewing 72,000 CA policies

State Farm Fire and Casualty Co., a subsidiary of State Farm Insurance, has agreed to pay the federal government $100 million in restitution for its alleged failure to handle flood insurance claims following Hurricane Katrina. The settlement brings to an end a legal process that began more than 16 years ago, when two whistleblowers filed… Continue reading State Farm Subsidiary to Pay $100M for False Katrina Claims

State Farm to Buy Auto Insurer GAINSCO

State Farm non-renewing 72,000 CA policies

State Farm announced a merger deal Thursday to buy auto insurance company GAINSCO for about $400 million in cash. Upon closing, the merger agreement states that State Farm Mutual will acquire all the stock in GAINSCO, Inc., the holding company of MGA Insurance Company, Inc., a Texas-domiciled insurance company, and GAINSCO shareholders will receive approximately… Continue reading State Farm to Buy Auto Insurer GAINSCO

State Farm on Pace to Lose Car-Insurance Crown to Geico

Rising auto insurance rates as car prices come down

State Farm, for decades the top dog of U.S. auto insurance, is on track to lose that status within just a few years unless trends favoring online insurers abate. After business losses following a series of uncharacteristically sharp rate hikes in 2016 and 2017, the 17 percent national market share the Bloomington-based giant held in… Continue reading State Farm on Pace to Lose Car-Insurance Crown to Geico

A Senator Questioned Why Insurance Companies Are Paying Police to Investigate their Customers

A senator responsible for overseeing the insurance industry spoke out Friday about State Farm, Farmers, and other major insurers funding police and prosecutors to investigate fraud — creating a system that can ensnare innocent people. “Insurance companies should not be permitted to abuse their investigations processes,” said Sen. Chris Van Hollen of Maryland, the top… Continue reading A Senator Questioned Why Insurance Companies Are Paying Police to Investigate their Customers

Safety A Key Focus of State Farm® Drive Safe & Save™ Mobile 3.0

Young woman sitting in a car

State Farm and Cambridge Mobile Telematics (CMT) announced version 3.0 of the Drive Safe & Save Mobile app, the latest update to the State Farm voluntary telematics program. The updated app has a revamped user experience with a focus on road safety. Users who choose to participate will benefit from the actionable data and feedback… Continue reading Safety A Key Focus of State Farm® Drive Safe & Save™ Mobile 3.0

State Farm and USAA to Test Blockchain Technology to Automate Insurance Claims

Blockchain digital technology concept

State Farm and USAA know how important it is to invest, innovate and build for the future. During the 2019 Dig In Conference, the two insurance companies announced a joint subrogation solution, and are now using real claims data to test how blockchain technology can improve the speed of the auto claims subrogation process. Subrogation… Continue reading State Farm and USAA to Test Blockchain Technology to Automate Insurance Claims

Dog Bite Claims Dropped In 2018, State Farm Reports

dog bite claims

Owning a pet is a big responsibility. Dog owners are responsible not only for the health and safety of their pet, but also protecting people from injury. Most dogs will never bite but it is important to remember that any dog, regardless of breed or type, can bite under certain circumstances. Over the last year,… Continue reading Dog Bite Claims Dropped In 2018, State Farm Reports

State Farm Returns to Profit in 2018

State Farm non-renewing 72,000 CA policies

In 2018, State Farm experienced a property-casualty underwriting gain, as well as increases in total revenue, net income and net worth. As the number one Auto and Homeowners insurer in the U.S., State Farm remains committed to serving its policyholders. The State Farm property-casualty (P-C) group of companies reported a combined underwriting gain of $1.7… Continue reading State Farm Returns to Profit in 2018