Otis Singleton
GEICO, or the Government Employees Insurance Company, is an American auto insurance company that was founded in 1936 by Leo Goodwin Sr. and his wife, Lillian Goodwin. The company is headquartered in Chevy Chase, Maryland, and is the second-largest auto insurer in the United States, providing coverage for more than 24 million motor vehicles owned by over 15 million policyholders. In addition to auto insurance, GEICO offers a range of other insurance products, including motorcycle, boat, travel, and pet insurance.
| Characteristics | Values |
|---|---|
| Year founded | 1936 |
| Founders | Leo Goodwin Sr. and Lillian Goodwin |
| Original business model | Providing auto insurance directly to federal government employees and their families |
| Original location | San Antonio, Texas |
| Current headquarters | Chevy Chase, Maryland |
| Parent company | Berkshire Hathaway |
| Number of policyholders | More than 15 million as of 2017 |
| Number of vehicles covered | More than 24 million as of 2017 |
| Types of insurance offered | Auto, motorcycle, ATV, RV, boat, snowmobile, travel, pet, event, homeowner, renter, jewelry, life, umbrella, and more |
| Sales channels | Local agents, phone, website, mobile app |
| Notable events | Began insuring the general public in 1974; began offering coverage for ridesharing company drivers in select states in 2015; experienced a data breach in 2021 |
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What You'll Learn
GEICO's history
GEICO, the Government Employees Insurance Company, was founded in 1936 by Leo Goodwin Sr. and his wife, Lillian Goodwin. Leo Goodwin had previously worked for USAA, an insurance company that specialised in insuring military personnel. After rising as far as a civilian could go in USAA's military-dominated hierarchy, Goodwin decided to start his own company. With $25,000 of their own money and $75,000 from a banker in Texas, the Goodwins set up GEICO to provide auto insurance directly to federal government employees and their families. Based on Goodwin's experience at USAA, GEICO's original business model targeted federal employees as a less risky and more financially stable group of insureds compared to the general public.
In 1937, the Goodwins relocated GEICO to Washington, D.C., and reincorporated the company as a D.C. In the following years, the company grew rapidly, and by 2002, GEICO had passed the 5 million policyholder mark. In 2004, GEICO introduced the Cavemen to television audiences with the slogan "so easy even a caveman can do it". GEICO's advertising campaigns have been extremely successful, with the company's mascot, the GEICO Gecko, becoming an advertising icon.
In 2010, GEICO provided mobile users with the ability to quote and buy a policy from mobile-friendly pages on their smartphones, a first in the insurance industry. As of 2017, GEICO is the second-largest auto insurer in the United States, providing coverage for more than 24 million motor vehicles owned by more than 15 million policyholders. In addition to auto insurance, GEICO offers a wide range of insurance options, including motorcycle, ATV, RV, boat, snowmobile, travel, pet, event, homeowner, renter, and jewellery insurance.
GEICO has had its setbacks as well. In 1975, the company reported a $126.5 million loss due to rapid expansion during the 1973-75 recession. More recently, in 2021, a data breach exposed customers' driver's license numbers through GEICO's online sales application for over a month. Despite these challenges, GEICO remains a trusted and well-known insurance company with a strong commitment to its values of excellent coverage, low prices, and outstanding customer service.
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Leadership and growth
The Government Employees Insurance Company (GEICO) was founded in 1936 by Leo Goodwin Sr. and his wife, Lillian Goodwin. The company was established to provide auto insurance directly to federal government employees and their families. Leo Goodwin's experience working for USAA, an insurer specializing in military personnel, inspired him to start GEICO. With their own capital and funding from a Texas-based banker, the Goodwins turned their business plan into a reality.
Under the leadership of its founders, GEICO thrived and grew. By 1958, when Goodwin retired, the company's insurance premiums had increased at a compound rate of 16% annually, growing from $40 million to $250 million. This success continued under the leadership of Lorimer Davidson, who took over as CEO following Goodwin's retirement. Davidson had been instrumental in the company's early days, providing legal assistance and investing in GEICO.
In 1970, Ralph Peck and David Lloyd Kreeger assumed leadership roles as President/COO and Chairman/CEO, respectively. During their tenure, GEICO expanded its customer base to include the general public, leveraging the advent of real-time access to computerized driving records. However, this rapid expansion led to challenges, and by 1975, GEICO reported significant losses, leading to leadership changes.
The company embarked on a reorganization led by John J. Byrne and supported by Buffett, with Alvin E. Krause playing a pivotal role in restructuring the underwriting operations. This effort set GEICO on a path to recovery, and by the early 2000s, the company had surpassed 5 million policyholders. GEICO continued to expand its reach, entering new markets and offering a diverse range of insurance products, including motorcycle, ATV, RV, boat, and homeowner policies.
In 2015, GEICO demonstrated its adaptability by offering coverage for drivers of ridesharing companies in select states, quickly becoming the largest insurance provider in this niche. As of 2017, GEICO is the second-largest auto insurer in the United States, providing coverage for over 24 million motor vehicles and serving more than 15 million policyholders.
GEICO's growth and success can be attributed to strong leadership, a customer-centric approach, and a commitment to innovation. The company's ability to adapt to market changes, embrace technology, and diversify its product offerings have been key factors in its expansion and prominence in the insurance industry.
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Services offered
GEICO, the Government Employees Insurance Company, provides a range of insurance services to its customers. The company was founded in 1936 by Leo Goodwin Sr. and his wife, Lillian Goodwin, to provide auto insurance to federal government employees and their families. Over the years, GEICO has expanded its services and now offers a wide range of insurance products to the general public.
GEICO offers auto insurance, including coverage for motorcycles, ATVs, RVs, boats, and snowmobiles. The company also provides travel insurance, pet insurance, event insurance, and homeowner's insurance. Additionally, GEICO customers can avail of renter's insurance, condo insurance, and jewelry insurance. The company also offers umbrella policies, which provide additional coverage beyond a customer's existing auto or homeowner's insurance.
GEICO has a strong online presence, allowing customers to manage their policies, make payments, and view policy information through the GEICO website and mobile app. The company also has a network of local agents, known as GEICO Field Representatives, who provide assistance and support to customers over the phone or in person at one of their many offices across the United States.
In addition to standard insurance offerings, GEICO provides specialized coverage for drivers of ridesharing companies in select states, including Texas, Pennsylvania, Ohio, and Georgia. The company also offers life insurance and has partnered with Iris Powered by Generali to provide identity protection services.
Electric Insurance Company, on the other hand, is a separate entity that is licensed to sell insurance in all 50 states, Puerto Rico, and the District of Columbia. They offer a range of insurance products, including auto insurance, homeowner's insurance, tenant's insurance, and umbrella insurance. Electric Insurance Company also provides renters insurance, which covers damage or loss caused by fire, vandalism, wind, theft, and liability claims. The company offers a range of payment options, including PayPal, Venmo, and bank accounts.
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Customer experience
GEICO, or the Government Employees Insurance Company, was founded in 1936 by Leo Goodwin Sr. and his wife, Lillian Goodwin. The company was established to provide auto insurance directly to federal government employees and their families. Since its founding, GEICO has expanded its services to include a wide range of insurance options, including motorcycle, ATV, RV, boat, snowmobile, travel, pet, event, homeowner, renter, and jewelry insurance.
GEICO's customer experience is centred around convenience and accessibility. The company offers multiple channels for customers to interact with them, including through their website, mobile app, phone, email, and in-person at local agent offices. The GEICO app and website allow customers to easily manage their policies, make payments, view their vehicle information, and access roadside assistance. GEICO's mobile app was recognised as #1 in the Forrester's 2021 US Mobile Auto Insurance Functionality Benchmark, demonstrating its focus on providing a positive digital experience for customers.
In addition to digital channels, GEICO also has a network of over 300 local agent offices across the United States, providing in-person assistance and support to customers. Customers can walk into any GEICO Field Representative office to receive help with their insurance needs, whether it's purchasing a new policy or servicing an existing one. The company's local agent program ensures that customers have the option to receive personalised assistance and support if needed.
GEICO also offers 24/7 customer support, ensuring that customers can reach out for assistance at any time of day or night. This around-the-clock availability provides peace of mind and allows customers to quickly resolve any issues or queries they may have. GEICO's commitment to customer service is evident in its core values, which include providing excellent coverage, low prices, and outstanding customer service.
While GEICO has generally received positive feedback for its customer experience, there have been some notable privacy concerns. In April 2021, a data breach exposed customers' driver's license numbers through GEICO's online sales application for over a month. This incident raised questions about the security of customer information and highlighted the importance of data protection for insurance companies. Overall, GEICO strives to provide a seamless and accessible customer experience, offering a range of channels and resources to meet the diverse needs of its policyholders.
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GEICO's advertising
GEICO, the Government Employees Insurance Company, was founded in 1936 by Leo Goodwin Sr. and his wife, Lillian Goodwin. The company was founded to provide auto insurance directly to federal government employees and their families.
In 2001, Leo Goodwin was inducted into the International Insurance Society Hall of Fame, and by 2002, GEICO had surpassed 5 million policyholders. The company continued to innovate, and in 2004, they introduced the Cavemen to television audiences with the humorous slogan, "so easy, even a caveman can do it." This campaign further solidified GEICO's presence in the insurance market.
GEICO's commitment to excellent coverage, low prices, and outstanding customer service has been a constant throughout its history. The company has expanded its insurance offerings beyond auto insurance to include motorcycle, ATV, RV, boat, snowmobile, travel, pet, event, homeowner, renter, and even jewelry insurance. GEICO's ability to adapt to the changing needs of its customers and its effective advertising campaigns have contributed to its success and made it the second-largest auto insurer in the United States.
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Frequently asked questions
GEICO stands for the Government Employees Insurance Company.
GEICO offers a wide range of insurance options, including auto, motorcycle, ATV, RV, boat, snowmobile, travel, pet, event, homeowner, renter, and jewelry insurance.
GEICO was founded in 1936 by Leo Goodwin Sr. and his wife, Lillian Goodwin.
Yes, GEICO is one of the biggest names in insurance and is widely trusted. It is the second-largest auto insurer in the United States, providing coverage for more than 24 million motor vehicles owned by more than 15 million policyholders as of 2017.
