The Bloomington Pantagraph ran an article discussing a planned increase in State Farm’s ad budget in response to pressure the big dog has been feeling from the gecko.
Included with the article is a chart describing changes in personal auto market share:
Company 1995 market share 2005 market share Geico 2.2 percent 6.2 percent Start Farm 19 percent 17.7 percent Allstate 10.6 percent 11.1 percent Progressive 2.4 percent 7.4 percent Nationwide 3.6 percent 4.6 percent
The Pantagraph article paints a picture of State Farm’s decline in market share coming at the expense of Geico and other upstarts. However, the numbers in that chart don’t quite support that.
True, State Farm hasn’t grown like some of its more prominent competitors…but I think the more interesting story is who really has been losing market share.
Annoyingly, I don’t have A.M. Best data handy, but if I’m not mistaken, the real story here is the decline of the small regional and mid-sized carrier.