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State Farm Insurance Research Paper

1091 Words5 Pages

Economic Indicators for State Farm Insurance
Sonya Miller
GB540-01
Kaplan University
October 2,2017

Economic Indicators for State Farm Insurance
Introduction
State Farm insurance is a leader in the insurance industry and to remain competitive the company has increased the number of services offered to over 100 products since the company was founded in 1922. The company has been ranked number one among automobile insurance providers and continues to make a name for themselves by holding the largest percentage of the market share for insurance marketers.In this paper, we will discuss different types of economic indicators and how these indicators could affect not only the economy but the performance of the company. Economic indicators …show more content…

For example, if the GDP is good State Farm will be able to hire more employees.This growth would have a positive effect on the company and the economy.However, if the GDP is not doing well the company may have to limit the number of employees that they hire.Another common indicator used by businesses is the leading indicator.An example of this type of indicator is the consumer confidence survey. Consumer confidence index is beneficial to business because this information provides businesses information concerning the financial health of consumers. For instance, consumers that have better financial health will spend more money than consumers that are not as financially secure. State Farm could use this information to determine how to best serve current consumers of their products. However , the consumer confidence may change if insurance rates are increased and consumers can not afford the increased rates which would cause many consumers to seek products with their competitors. Lagging indicators is another indicator that is important for business. This indicator is used as a guide for long-term trends within a business such as corporate profits. For instance, this indicator may show in the first quarter profits may be lower due to an increase in the …show more content…

One thing the company could do to deal with interest rates is to lock in rates with current customers and remain competitive with other insurance companies.
Maximizing Revenue
To maximize revenue State Farm must provide an exceptional customer service experience
Economic Indicators for State Farm Insurance and maintain the integrity and follow the mission statement of the company.State Farm should use their products as a competitive advantage over other insurance companies to gain additional revenue by inquiring about the needs of current customers and informing new customers of all products and services available. The company must work to keep prices low by keeping prices low the company will be able to retain current customers and attract new

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