Our Mutuality is What Makes Us Unique.
Farmer’s Mutual is different than the competition in one significant way: our policyholders are also our owners and they are the sole focus of our operation. In 1895, we made a commitment to our Policyholders to be a successful insurance provider and we continue to live by our commitment today. Over the years our commitment has offered us the opportunity to return on our success in the following ways:
- We return outstanding service to our policyholders and business partners, by investing in people and proven technology to continually enhance our performance.
- We return fair settlements to all valid claims. That is, after all, why a group of forward-thinking businesspeople joined together in 1895 to start this company: to spread risks that no one could afford individually.
- We return profits to the company, strengthening our financial status and securing our policyholders’ interests for the future. This is how we weathered the recent economic turmoil.
To ensure that our policyholder assets are well protected, Farmers’ Mutual Insurance Company is a member of the Fire Mutual’s Guarantee Fund.
The Fund was established in 1976 to protect policyholders if their mutual insurance company becomes insolvent.
According to the membership agreement, the Fund will pay any outstanding claims or unearned premiums to a member company’s policyholders if that company declares insolvency. The agreement is only for the protection of policyholders, and is not intended to support a company in financial distress. Each Fund member has pledged their assets to the Fund, to guarantee that all outstanding claims are paid, and all unearned premiums are returned to the policyholders.
Fortunately, it has not been necessary to enforce the agreement since its inception. However, it will always be there as complementary insurance for our policyholders, just in case.
