Record breaking premium increases….wow…this all started some 13 yrs ago or longer when they closed all of the local offices and moved to 4 hubs. They lost the majority of their seasoned claim reps. Failed executive Robert Yi under the guidance of the ceo coordinated a business model that failed from the beginning. Now its a runaway train due to incompetent executive leadership. They can not stop it. The claim force for both auto and fire is horrendous. Massive turnover…no training…the team concept….what a joke. $25 billion in losses for two years ? Time to clean house and get new leadership…but I am afraid its too late
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We have somebody from campbells soup succeeding by losing more money than the business lines has ever historically made. Nice!
Exactly. Well said.
@havk Paul Smith retiring effective 4/1/24.... I guess he does not want to miss out on his multimillion-dollar bonus.
With the unsustainable losses over the past 2yrs, not surprising that Schmidt, Smith, and MT having retirement plans in 2024.
All of that safety technology in today's cars costs big money to replace when it's damaged. Safelite charges $400 just to "recalibrate" the sensors in the rearview camera when they replace the front windshield on a Toyota Camry. Body shops here charge $6,000 for a new Ford F150 front bumper (not including labor) which has collision sensors in it.
Insurance executives = systemic chronyism socialists.
Isnt it amazing with all the safety technology features on vehicles nowadays and premium going up. We pay people who produce NOTHING! LEGALIZED RACKETEERING. GANGSTAS!
Agent here, I say keep the record premium increases coming, agents have never made more money. Almost as good as a UAW wage increase.
Time to utilize AI to handle claims and underwriting. Keep a small crew and get rid of the rest.
And the only thing that is going to be worse is the useless piece(s) of sh-t that are going to replace MT next year when he retires at 65! We keep seeing KC and CS on the Exec briefing calls so they are laying the foundation for one of them to be the next CEO. Both are former SF Agents, have no clue how the business works, and we all know how useless and clueless agents are. You think MT and his cronies fleeced the company of $100s of millions, you haven't seen anything yet! People will be begging for the good ole days when we had that awesome, inspiring, sensitive/crying, visionary leader named "Just the Tip"-Tipsurd running the company! Hold on...ohhhh.... I forgot we are going to grow our way to profitability! I love their wife math SF! $25 billion and counting!
25 billion in losses, yet our ceo is rewarded with over 40 million dollar in the last 2 years. Just doesn't add up.
None of which is causing the large underwriting loss in your headline.
https://coverager.com/state-farm-sees-large-losses-in-2023/