STATE FARM INSURANCE

State Farm Insurance



State Farm Insurance

Introduction

The insurance industry is at a crossroads given environmental and demographic changes ahead. The world's second largest asset-based industry, with global consumer connections, insurance plays a vital role in the world economy, influencing societal and economic confidence and security. Its choices at this juncture will affect society's fortunes.

Overall thought leaders predict that many future corporate social responsibility (or sustainability, used interchangeably in this paper) developments in the insurance industry will align with general industry trends towards the embedment of sustainability within governance, management and operations. Sustainability reporting and carbon neutral programming will be common features over the decade, as will a suite of sustainability products to reward customer sustainability behaviors, especially those that reduce risk, prevent loss and increase insurance affordability. Particularly, a number of climate change related products are expected to materialize during the decade, as are products that encourage healthy lifestyles. Future customers are expected to be more demanding of corporate sustainability performance, no less for the insurance industry (Welford, 2000).

Asset management in this period will undergo a revolution as insurers become more sensitized to the degree to which social and environmental developments can affect their portfolio investments. A rich stakeholder environment is also predicted, with insurers collaborating with governments, non-governmental organizations (NGOs), the private sector and communities in mapping out their sustainability journey. Thought leaders also predict a number of drivers for sustainability performance of the insurance industry. Climate change trumped all others as having the biggest affect going forward, followed by resource scarcity in general. Growing public awareness and rising consumer expectations, fueled in part by instantaneous and ubiquitous media, will have a significant influence on insurers' social and environmental practices, as will investors seeking quality sustainability management.

NGOs, governments and employees, not to mention the competition, will create additional pressures on the insurance industry in the drive towards continuous sustainability improvement.

State Farm Insurance

State Farm Insurance (State Farm) is engaged in the provision of property and casualty insurance, life and health insurance, annuities, mutual funds, banking services, and reinsurance products for both individuals and small businesses. The group primarily operates in the US and some parts of Canada. It is headquartered in Bloomington, Illinois and employs 67,000 people. The company recorded revenues of $32,359 million in the financial year (FY) ended December 2010, an increase of 0.9% over FY2009. The operating profit of the company was $915 million in FY2010, an increase of 82.7% over FY2009. The net profit was $951 million in FY2010, an increase of 66.8% over FY2009.

State Farm Insurance (the group) provides property and casualty insurance, life and health insurance, annuities, mutual funds, banking, reinsurance, and related products for both individuals and small businesses in the US and parts of Canada. The group conducts its business through segment-specific operating subsidiaries, including State Farm Indemnity; State Farm Fire and Casualty; State Farm General Insurance; State Farm Florida Insurance; and State Farm County Mutual Insurance Company of Texas; State Farm Life Insurance; State Farm Lloyds; State ...