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Insurance industry

State Farm and The Greenlining Institute Launch Urban Marketing Program for Low and Moderate Income Families

Strategic Insights

— 1 min read

The joint announcement by State Farm insurance companies and The Greenlining Institute has laid the foundation for increased property insurance availability for low and moderate income families in East and Central Los Angeles. As part of the partnership, State Farm will unveil an urban marketing program that could double its homeowners and renters business in 40 zip code areas of Los Angeles and Compton. The program aims to bring much-needed services to these communities, with up to $2.2 billion in new coverage available under the terms of the plan.

Key Takeaways:

  • The urban marketing program aims to double State Farm's homeowners and renters business in 40 zip code areas of Los Angeles and Compton.
  • Up to $2.2 billion in new coverage will be made available under the terms of the plan.
  • As many as 9,400 new State Farm policyholders could be added as a result of the program, based on the average amount of coverage purchased by State Farm's 9,500 current customers in the communities.
  • State Farm is modifying its growth restrictions in California to offer additional property coverages to low and moderate income areas.
  • The company will ask agents to voluntarily locate their offices in the communities affected.
  • State Farm president Ed Rust, Jr. thanked The Greenlining Institute for its assistance in the program.
  • Commissioner of Insurance Charles Quackenbush supported the concept and encouraged State Farm and The Greenlining Institute to go forward with the program.
  • Insurance expert George Bivins praised State Farm's "sound business leadership" and encouraged other major insurance companies to compete for new homeowners insurance.

Statistics:

  • Up to $2.2 billion in new coverage will be made available under the terms of the program.
  • As many as 9,400 new State Farm policyholders could be added as a result of the program.
  • State Farm has 9,500 current customers in the target communities.
  • Since mid-1993, State Farm has restricted its growth in property insurance in California.

Sources:

  • State Farm insurance companies
  • The Greenlining Institute
  • The Los Angeles Times, March 6, 1995
  • PRNewswire, March 6, 1995

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