Last year was notoriously costly for insurers around the world. Natural disasters have taken their toll on many companies, causing some to close their doors and others to reevaluate their plans for continued operation. Given the recent catastrophes already occurring this year, companies are taking steps to save more money.
State Farm is one such company, announcing plans for the closure of nearly 24 field offices in Illinois, Indiana and Michigan.
The big name insurer is looking to shrink the size of its operations. Offices that it will not be closing will be consolidated. State Farm’s vice president of business operations, Valerie Clinton, says that the effort is to ensure the company’s competitive stature in a changing industry.
Currently, State Farm employs some 5,000 workers in the three states. Surprisingly, none of them will be losing their jobs.
The majority of employees will be able to work from home, becoming so called “mobile employees.” The company will be relying heavily on advanced communications technologies to reduce the expenses associated with operating large facilities. Clinton believes that the initiative will enhance service to customers.
There will still be field offices in both Illinois and Michigan, but each state will only have two. State Farm officials say that the closure of the rest of their field offices in the states will save $8 million over the course of 5 years. A handful of employees will continue to work at these offices.