Leo Goodwin founded GIECO with the belief that he could form a better way of selling auto insurance. To achieve this end he eliminated the middleman and sold insurance directly to the consumers, which reduced the cost. Goodwin believe the best way to do this was to market auto insurance directly to the customers. First though he needed to select the customers he wanted. This helped the company reduce their costs, and begin turning a profit. These profits were then passed on to the customers through lower premiums. This method of doing business continues today, as the company continues to look for ways to keep their operating costs down. This results in lower premiums for all customers. GEICO became a subsidiary of Berkshire Hathaway in 1996. This led to a number of changes within the company, as Warren Buffet, the company's CEO, began improving things. They have always had a presence and interest with the US Military. GEICO sells auto insurance policies for boats, motorcycles, and automobiles. In addition they also sell life, personal umbrella protections, apartment, home, and mobile home insurance. The History of GIECO Leo and Lillian Goodwin are two names closely tied to the history of GIECO. In 1930 during the height of the Great Depression Leo Goodwin had a desire to start an insurance company. This company would officially launch as the Government Employees Insurance Company. Goodwin believed that the best way to make a profit was to lower operating costs, and market sales directly to shoppers. Leo and Lillian Goodwin began their company in 1936 in an office in Washington, DC. Lillian was a well-respected bookkeeper, and assisted her husband in all aspects of the company. By the end of the year they had sold almost 3,700 policies and employed 12 people. The Goodwin's received help from a friend named Lorimar Davidson in 1948. Davidson thought it would be best if the company utilized investors, and helped them secure funds from these investors. Some of those investors included famous names such as Warren Buffet. When Goodwin decided to retire in 1958, Davidson became the new CEO. The following year the company moved their offices to Chevy Chase, Maryland.
Following those changes, GIECO continued to grow and expand over the years. By 1964 they had over 1 million policyholders using their company. The net earnings of GIECO nearly doubled in the following years. To better meet the needs of their customers, they began to open service and sales centers around the county. GIECO experienced a number of problems during the 1970's as both Leo and Lillian died. They also saw their growth and expansion drop dramatically. Through it all GIECO remained strong, and managed to bounce back from their problems. Warren Buffet helped by purchasing a large number of company shares in 1976. The company only continued to grow during the 1980's as they began offering 24 hour a day, 7 days a week, 365 days a year telephone support. Towards the beginning of the 1990's they announced that their CEO would be Olza Tony Nicely. They then shifted their focus towards better advertising and marketing of their service, and to reach more customers across the country. This made the company more visible and more profitable. Berkshire Hathaway purchased all outstanding shares of the company in 1996, making GIECO a wholly owned subsidiary. GIECO has continued to grow and expand since then, becoming a major player in the world of auto insurance. In 2000 they became even more popular when they launched the GIECO gecko. This little lizard has become one of the most famous faces in advertising. Leo Goodwin was added to the International Insurance Society Hall of Fame in 2001. Two years later the company reached over 5 million policyholders. They followed this up by adding service centers all across the country. The year 2004 was a banner year for the company as they reached 6 million policyholders, and returned to certain markets in different states. GIECO is devoted to several things including low prices, great customer service, and terrific coverage. They have continued to find ways to lower their operating costs, and to pass along those savings to their customers through lower insurance premiums. GIECO Profile In the US GIECO is ranked as the fourth largest private-passenger auto insurer and the largest direct writer of private passenger auto insurance. They have $21.2 billion in assets and 21,500 employees with 12 major offices. Their website is available through Gieco.com. Additional Information GIECO is actually an acronym for Government Employees Insurance Companies. They are based in the US, and were formed by Leo and Lillian Goodwin. The original intention was to market insurance to federal employees and their families. They hoped to lower risks by using reliable customers. To increase profits they also began insuring the public during the 1970's. Their field agents are available on military bases, and they also work with customers in field offices, over the Internet, and on the telephone. GIECO has made a number of changes over the years, including changing their policies and their method of advertising. The use of the GIECO gecko was one of their main changes. The gecko has become the face of the company, and a well-known advertising icon. This famous face was created by the Martin Agency, and the Rhythm and Hues Studios created the actual CGI work. The first commercial featured the little lizard with a British accent claiming that people were confusing him with the insurance provider. GIECO is also famous for creating the cavemen commercials, wherein a group of modern day cavemen express their displeasure at one of the company's slogans. The commercials stated, "So easy, a caveman could do it." Later they would show the cavemen complaining about this comment because it demeaned them. GIECO later dipped into satire, creating more commercials that were parodies of famous events in pop culture history. The cavemen even earned their own sitcom on ABC for a season in recent years. It appears as though GIECO will always remain valuable in terms of their television and radio commercials. |
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