The Farmers Story

Although many companies have grown from small beginnings to become giants in their industries, Farmers is one of the very few to start in business only one year before the greatest economic depression in American history and still survive to become a household name. Innovative business thinking and our commitment to doing what’s right for the communities we’re privileged to serve have been a hallmark of Farmers since 1928, and have propelled us from a tiny one-room office in downtown Los Angeles to offices and homes all across America.

Our founders

John C. Tyler and Thomas E. Leavey came from very different backgrounds, but they shared a common dream: providing a high-quality insurance product at a reasonable price. They knew from personal experience that farmers and ranchers experienced fewer risks with their vehicles and were entitled to preferred rates. Tyler and Leavey put up their own money and went farm to farm to gain their first policies. By 1928, they were ready to open for business.

The friendship and business partnership between Tyler and Leavey began in the mid-1920s and lasted the rest of their lives.

John C. "Jack" Tyler was born in a sod hut on the banks of the James River in South Dakota. His father was a farmer-turned-insurance salesman, and after young Tyler completed his service in World War I, he moved to Los Angeles and became a painting contractor. Once successful, he followed in his father's footsteps and joined the insurance industry by partnering with Thomas Leavey to create the Farmers Automobile Inter-Insurance Exchange. Upon his death, at his bequest his widow established The Tyler Prize for Environmental Achievement, an international award given to those who make significant environmental achievements.

Thomas E. Leavey came from a dairy farm in Humboldt County, Calif. After entering the Army in the final days of World War I, Leavey went on to obtain a law degree from Georgetown University and subsequently returned to Los Angeles to work in the banking industry. Throughout his life, he was known as a charitable philanthropist, encouraging profit-sharing among his employees and sharing his own funds with universities, 4-H clubs and hospitals — many of which now bear the Leavey name. The Thomas and Dorothy Leavey Foundation, which he co-founded with his wife, has given more than $100 million to support educational, medical and religious institutions.

The first Farmers customers, Mr. and Mrs. Charles Brisco, insured their 1925 Cadillac Phaeton. Asked years later why they had chosen a new and untested company, Mr. Brisco stated, “I just exercised sound judgment.”

The Farmers emblem was designed by artist Bert Scrum in 1928, featuring a dawn sunburst “to represent the source of life-giving energy to things that grow.” Over the years, the logo has been revised and a shield has been superimposed to symbolize protection.

The late 1920s and early 1930s were troubling times for the nation. The Great Depression shattered the economy, and as many as one in three adults were out of work. Farmers agents and district managers were among those who marched in parades across the nation in support of the National Recovery Act. At the same time, Farmers was one of few companies able to pay customers’ claims in cash instead of with IOUs. When the devastating Long Beach earthquake hit in 1933, Farmers agents and district managers swarmed to the scene to aid customers and non-customers alike. From our Home Office in Los Angeles, the call went out immediately: “Pay them. Pay them all.”

The 1940s

By 1940, Farmers had expanded into 19 states, was the leading Auto carrier in the northwest and was providing Auto and Truck insurance to farmers and non-farmers alike. In 1943, Fire insurance was added so that agents could provide coverage for homes and businesses.

Always a strong supporter of our men and women in uniform, Farmers employees volunteered for service both at home and abroad during World War II. Some planted Victory Gardens, some served with General James Doolittle, and some even hand-stitched customers’ policy files to avoid using metal staples when metal was in short supply. When the war was over, agents scrambled to find parts for many of our customers’ vehicles, and our “fast, fair and friendly” reputation helped the company continue to grow.

A Farmers ad from 1941		The Farmers Safety Division worked with trucking companies to monitor insured commercial trucks on the highways and to provide safety training for drivers

The 1950s

The 1950s were a time of great growth and expansion for Farmers, in particular with the acquisition of the New World Life Company of Seattle in 1953. In 1956, Farmers also showed its continued interest in technological innovation by becoming the first company west of the Mississippi to use IBM 705 computers for data storage and retrieval. Farmers offices were springing up all over the country, and Farmers ads began appearing in national magazines for the first time, and on television in the Tournament of Roses Parade. From the Home Office in Los Angeles, celebrities such as Roy Rogers, Bob Hope, Jane Powell, Art Linkletter and Tyrone Power participated in Farmers-sponsored radio programs and community activities.

The wall-sized central processing unit of Farmers' first IBM 705 computer	Roy Rogers (right) and Farmers co-founder Thomas Leavey at the opening of a regional Farmers office in 1953

The 1960s

In the 1960s, technology and market position allowed Farmers to spend more time and resources on developing customer-friendly products and services. More and more specialized insurance coverages became available, and thanks to our computerized records, we were able to adjust rates quickly and precisely to match customers’ actual risks. In 1961, Farmers became the first major insurance organization to offer a monthly payment plan that wasn’t a finance plan and didn’t charge customers any interest. Later in the decade, we offered Uninsured Motorist coverage and policies providing discounts to drivers between the ages of 30 and 60. We also provided drive-in claims service beginning in 1962.

After Hurricane Carla in Texas in 1961, agents used any means at hand to reach out to Farmers customers and provide help.	A 1960s Farmers agency

The 1970s

During the turbulent 1970s, many Americans were searching for stability and reliability in their insurance company, and Farmers was there for them. We expanded the options on Life insurance, and added benefits to our Homeowners policies such as replacing household items damaged by fire at current replacement cost instead of depreciated value. Keeping pace with a growing focus on pro-health issues, Farmers became the first major insurer to offer a non-smoker discount. Meanwhile, at the Home Office in Los Angeles, innovations in remote data backup helped us withstand the damage to our computer systems from a major 1971 earthquake.

The 1980s

By the 1980s, Farmers agents were everywhere, doing “the right thing for the right reasons” to help American families with their insurance needs. In 1981, we introduced the Friendly Exchange magazine, which provided our customers with informative articles about safety and other insurance-related topics. Farmers agents also began systematic “Farmers Friendly Reviews®” — in-person meetings at which customers could review their coverage, learn about new discounts and make sure there were no gaps or duplications in their existing coverage. At the same time, Farmers was continuing to innovate with a line of Life insurance products, including the introduction of a revolutionary concept in chronic kidney failure benefits, which essentially helped patients use their Life policy to pay for certain medical costs. Farmers’ strong brand and creative thinking attracted the attention of the British American Tobacco Company, which acquired 100 percent of Farmers Group, Inc. in 1988.

The Loma Prieta earthquake occurred near San Francisco, during the warm-up for the third game of the 1989 World Series. This was the first major earthquake in America to be broadcast on live television. Farmers Family not only assisted during the crisis, but also created an Earthquake Fund to raise money for the victims.

The 1990s

By the 1990s, all levels of American society were affected by the growing use of computers. Weather prediction was more accurate. First responders such as police and firefighters could respond with greater effectiveness, thanks to more precise situational data and computer-enhanced communication. At Farmers, we were able to use the advances in technology to provide new levels of service to our customers, confidently promising that we could help restore lives to order. Whether in minor fender-benders or disasters such as the 1992 Los Angeles riots, the 1994 Northridge earthquake or the 1999 Midwest tornados, Farmers claims personnel hit the ground immediately, using the best available equipment to give our customers the most fair estimates. Farmers employees also committed to being a positive influence in the community through our Partners in Pride organization, which provides opportunities for the Farmers Family to help with neighborhood rebuilding projects, USO events, adopt-a-family programs, toy donations and other activities. A new era for Farmers began in 1998, when Farmers Group, Inc. was acquired by Zurich Financial Services.

Farmers provides industry-leading training for agents and claims representatives at the award-winning University of Farmers, dedicated in 1996.

The new century: 2000s and beyond

The 21st century has been exciting already for Farmers. We're embracing positive change and are leaders in catastrophe response, thanks largely to two industry-leading developments: our unique Farmers HelpPoint^® service and our Mobile Catastrophe fleet. We’ve made it easier for customers to compare coverage with free VIP^® consultations, and we've increased our convenience through 24-hour online claims tracking and easy billing options. Following our founders' commitment to the environment, we became the first major insurer to offer a discount for alternative-fuel vehicles. By acquiring noted insurer Bristol West in 2007, we added more non-standard Auto policies for our customers. In July 2009, 21st Century Insurance and Financial Services, based in Wilmington, Del., became a part of the Farmers Insurance Group of Companies. 21st Century Insurance and Financial Services and its affiliates, using the Internet and direct-response marketing channels, market personal auto insurance to consumers in the District of Columbia and all states except Massachusetts. Smart investments in people and technology have served us well. Our reputation as community leaders continues in small everyday ways as well as with major fundraising through events such as our Be A Hero For Babies Day, which has raised millions of dollars for the March of Dimes. As we look forward, we are more determined – and more capable – than ever to deliver on our promise to each and every customer: "Farmers gets you back where you belong."

Farmers agents and employees take great pride in helping babies get the care they need, which is why thousands of Farmers Family members dedicate their time and effort to June's Be A Hero For Babies Day.	The Farmers mobile catastrophe claims fleet provides internet service, claims handling and satellite TV. It also feeds customers and non-customers alike after disasters such as the Southern California wildfires in 2007.