American Family Insurance
Encyclopedia
American Family Insurance (aka AmFam) is a private mutual company that focuses on property
, casualty
and auto insurance, but also offers commercial insurance, life
, health
, and homeowners
coverage, as well as investment
and retirement
-planning products. A Fortune 500
company, its revenues for 2008 were over $6.7 billion.
(not to be confused with the Farmers Insurance Group). At the time, the company's only product was auto insurance and its target market was farmers. Wittwer believed farmers presented lower risks than city drivers because they drove less often and not at all in the winter.
Over the years, Farmers Mutual expanded its market and product line to meet the changing needs of its customers. In 1963, Farmers Mutual changed its name to American Family Mutual Insurance Company to reflect its broader customer base.
personal umbrella insurance, home insurance; motorcycle, boat, motor home, snowmobile and car insurance; business liability key policy, and business policy package insurance; farm and ranch liability insurance; travel, trip cancellation, and global medical insurance
, Wisconsin
, and has regional offices in Eden Prairie, Minnesota
, Saint Joseph
, Missouri
, Denver, Colorado
and Columbus, Ohio
.
selected American Family Insurance as a recipient of its Teen Driving Safety Leadership Award. Through its “Teen Safe Driver Program,” the company has provided, a video feedback program (using the DriveCam
system) in which parents can watch the actual driving actions of their teens. The program was validated by scientists at the University of Iowa to produce a 70% reduction in risky driving behavior.
. From that initial gift, the amount grew by several millions more through employee, agent and additional corporate donations. The hospital opened for business in September 2007.
Property insurance
Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance or boiler insurance. Property is insured in two main...
, casualty
Casualty insurance
Casualty insurance, often equated to liability insurance, is used to describe an area of insurance not directly concerned with life insurance, health insurance, or property insurance. It is mainly used to describe the liability coverage of an individual or organization's for negligent acts or...
and auto insurance, but also offers commercial insurance, life
Life insurance
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...
, health
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
, and homeowners
Home insurance
Home insurance, also commonly called hazard insurance or homeowner's insurance , is the type of property insurance that covers private homes...
coverage, as well as investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
and retirement
Retirement
Retirement is the point where a person stops employment completely. A person may also semi-retire by reducing work hours.Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions don't allow the person to...
-planning products. A Fortune 500
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
company, its revenues for 2008 were over $6.7 billion.
History
American Family Insurance's history began on October 3, 1927, when insurance salesman Herman Wittwer opened the doors of Farmers Mutual Insurance Company in Madison, WisconsinMadison, Wisconsin
Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. It is also home to the University of Wisconsin–Madison....
(not to be confused with the Farmers Insurance Group). At the time, the company's only product was auto insurance and its target market was farmers. Wittwer believed farmers presented lower risks than city drivers because they drove less often and not at all in the winter.
Over the years, Farmers Mutual expanded its market and product line to meet the changing needs of its customers. In 1963, Farmers Mutual changed its name to American Family Mutual Insurance Company to reflect its broader customer base.
Subsidiaries
Companies of the American Family Insurance Group include:- American Family Mutual Insurance Company (AFMIC)
- American Standard Insurance Company (ASIC)
- American Family Life Insurance Company (AFLIC)
- American Family Brokerage, Inc. (AFB)
- American Family Insurance Company of Ohio (AFICO; Ohio subsidiary, companion to American Family Mutual Insurance Company)
- American Standard Insurance Company of Ohio (ASICO; Ohio subsidiary; companion to American Standard Insurance Company of Wisconsin)
- American Family Securities, LLC (AFS)
- Amfam.com Inc.(AMFAM)
Products
American Family insurance products include: term, universal, and whole life insurance; personal and business auto insurance,personal umbrella insurance, home insurance; motorcycle, boat, motor home, snowmobile and car insurance; business liability key policy, and business policy package insurance; farm and ranch liability insurance; travel, trip cancellation, and global medical insurance
Operating Territory
The American Family Insurance Group is based in MadisonMadison, Wisconsin
Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. It is also home to the University of Wisconsin–Madison....
, Wisconsin
Wisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
, and has regional offices in Eden Prairie, Minnesota
Minnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
, Saint Joseph
Saint Joseph, Missouri
Saint Joseph is the second largest city in northwest Missouri, only second to Kansas City in size, serving as the county seat for Buchanan County. As of the 2010 census, Saint Joseph had a total population of 76,780, making it the eighth largest city in the state. The St...
, Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
, Denver, Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
and Columbus, Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
.
Significant Milestones
Below is a list of milestones in the corporate history of American Family Mutual Insurance.- 1927 Farmers Mutual Automobile Insurance Company was founded on Oct. 3 in Madison, Wis.
- 1938 Both premiums and assets surpassed $1 million.
- 1957 Farmers Mutual began to offer sickness and accident insurance.
- 1958 Company introduced homeowners insurance and opened American Family Life Insurance Company.
- 1959 Farmers Mutual entered the computer age with the RAMAC 305.
- 1961 American Standard began sales.
- 1962 Company began to offer farmowners insurance.
- 1963 Policyholders gave final approval to change the company's name to American Family Mutual Insurance Company.
- 1969 American Family Financial Services opened.
- 1975 Commercial Lines was introduced. American Family became the fifth-largest mutual auto insurer.
- 1981 Assets surpass $1 billion. American Family became the fourth-largest mutual auto insurance company.
- 1985 American Family Brokerage, Inc. opened.
- 1986 American Family posted its first $100 million operating gain.
- 1992 Policyholders' surplus exceeded $1 billion.
- 1994 American Family rolled out its catastrophe trailer. The company ranked as the 11th-largest property/casualty insurer.
- 1996 American Family first appeared on the Fortune 500 list at number 403.
- 1997 American Family became the 10th-largest property/casualty insurer in the nation. Assets surpassed $8 billion.
- 2001 American Family Securities, LLC introduced variable products. Assets for American Family Mutual Insurance Company exceeded $10 billion.
- 2001 Furthers expansion into Utah and Idaho. American Family in 17 states across the U.S.
- 2002 American Family celebrated its 75th anniversary.
- 2003 American Family donated $10,000,000.00 towards construction of the future UW Children's Hospital, to be named American Family Children's Hospital.
- 2006 Furthers expansion into Washington State. American Family in 18 states across the U.S.
- 2009 Furthers expansion into Georgia. American Family in 19 states across U.S.
Awards
In 2010, National Safety CouncilNational Safety Council
The National Safety Council is a 501 nonprofit, nongovernmental public service organization dedicated to protecting life and promoting health. Headquartered in Itasca, Illinois, NSC is a member organization, founded in 1913 and granted a congressional charter in 1953...
selected American Family Insurance as a recipient of its Teen Driving Safety Leadership Award. Through its “Teen Safe Driver Program,” the company has provided, a video feedback program (using the DriveCam
DriveCam
DriveCam, Inc. is a global driver risk management company located in San Diego, California. It specializes in designing, manufacturing and selling video driver safety programs used by commercial fleets....
system) in which parents can watch the actual driving actions of their teens. The program was validated by scientists at the University of Iowa to produce a 70% reduction in risky driving behavior.
American Family Children’s Hospital
On March 4, 2003, American Family Insurance announced a $10 million gift launching the campaign to create the American Family Children’s Hospital at the University of Wisconsin Hospital and ClinicsUniversity of Wisconsin Hospital and Clinics
University of Wisconsin Hospital and Clinics is a 471-bed academic medical center with 80 outpatient clinics in Madison, Wisconsin. It is an American College of Surgeons designated Level I adult and pediatric trauma center, one of two Level I trauma centers in Wisconsin- the other in Milwaukee...
. From that initial gift, the amount grew by several millions more through employee, agent and additional corporate donations. The hospital opened for business in September 2007.