We know Geico for the catchy ads it makes, but do we know Geico’s biggest competitors well enough? Geico or the Government Employees Insurance Company is an auto insurance company, the second largest in the United States. The company has over 12 million policy holders it caters to. But, what has been under the spotlight for the company is its innovative marketing efforts.
Founded in 1936 by Sir Leo Goodwin Sr. and wife Lillian, the intent of the company was to provide direct insurance to federal government employees. Interestingly the founder had been an employee with its now competitor USAA which specializes in providing insurance to military personnel. Since then the company has been able to make a mark in the industry and has also delved into other types of insurance other than auto insurance, like homeowners insurance and life insurance. The basic model was to tap the reliable government employees customer base which has a stream of customers with a stable income.
Geico followed a direct to a consumer sales model where it generally uses means like telephone and the internet to deal with its customers. However, over the years it has come up with numerous advertising campaigns that have had a mass appeal where their mascots have been especially popular. And, while the Geico Caveman and Geico piggy have made some big sales themselves, the gold dust day Gecko with a cockney accent is recognizable in every American Household. The company has been proactive with its advertising efforts and had spent over $1 billion in advertising in 2012, resulting in successful campaigns like ‘money savers’ and ‘Happier Than…’ campaigns which are sure to go down in case study history!
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But even with the constant robust marketing, the company has been no stranger to strong competition and though the players in the immediate industry are few, the companies have been at loggerheads with their market capturing efforts. Then there are also the 25 Largest Financial Companies by Revenue who, though not immediate competitors, are also vying for the similar customer base. So here’s a list of who Geico’s biggest competitors are and who has ultimately been successful in beating it to the position of the largest auto insurer in the US.
5. Progressive
Headquartered in Mayfield, Ohio, the company is one of the largest car insurance companies in the country along with providing insurance for motorcycles, RVs, boats and commercial vehicles. The company also has operations in Australia. It currently has sold over 13 million policies to customers.
4. Nationwide Insurance
The insurance and financial services group is headquartered in Columbus, Ohio. The Nationwide group is one of the largest insurance and financial services providers in the world, and deals with domestic property, casualty insurance, life insurance, retirement savings, strategic investments and asset management. The company also has great CSR policies and has several scholarships that it offers.
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3. United Services Automobile Association
The Fortune500 Company provides insurance to customers who serve or have served in the U.S. Military and their family members. It has diversified to provide banking and investment services to its customer base which includes up to 10.7 million members. The company, much like Geico, uses direct marketing techniques to reach its customers.
2. Allstate
The largest publicly held personal lines insurer, Allstate, made stellar revenue of $35.2 billion in 2014. The company has also made its presence in Canada offering personal lines insurance. Like Geico, Allstate has also been proactive with its marketing and sponsorship efforts, with its current ad tag line asking “Are you in good hands?”
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1. State Farm
And the company which has secured the position of the largest auto insurer and Geico’s biggest competitor is State Farm. Ranking at 44th among the Fortune 500 companies by revenue, the company’s most famous campaign indicating “Get to a better State” resulted in a very favorable company image and increased revenue.
