Earlier this year, we published an article on how agents from all companies can learn from State Farm’s agents’ approach to customer retention. The nation’s biggest insurer relies heavily on retaining customers as part of its broader strategy. Every industry cycle, State Farm tries to be the last insurer to increase rates and grow customer count when its competitors increase rates. Then, when the rest of the industry has increased rates, State Farm also increases rates and relies on its retention expertise to keep the newly won customers. This strategy has proven over the decades and helped create State Farm’s success.
Cross Sell, Cross Sell, Cross Sell
State Farm’s agents are exceptional at cross selling. Last year, State Farm’s agents accounted for 25% of all personal umbrella premium sold in the US. Their personal umbrella premium increased 38% 2025 because of rate increases and focused sales efforts. The next biggest seller of personal umbrella insurance was Chubb with an 8.5% market share, about one third of State Farm’s share. This will help State Farm secure their customers when they need to increase rates.
State Farm’s agents also sell more life insurance policies than any other company by a wide margin. In 2025, State Farm sold 810,000 life policies, about 42 policies per agent. The next biggest seller of life insurance was Mutual of Omaha which sold 519,000 polices.
Nothing retains a customer better than life insurance and State Farm knows it. The policies do not need to be large. State Farm’s average annual premium was just $780 per policy. But the retention effect remains.
Learning From Other State Farm Agents
State Farm established an agent mentoring program which encourages newer agents to learn from more veteran agents. Other companies have similar voluntary programs, some formal and some informal.
Customer Retention Specialists
Customer retention specialists are common in State Farm agencies and focus on implementing retention best practices. Their job descriptions typically include building relationships, cross selling, and reaching out to clients on a relatively regular basis. Sending birthday cards, holding customer appreciation days, and building a social media presence are often part of the job. They hold customers’ hands through claims and generally build strong relationships. While many agents do some of this, State Farm’s agents take it to a new level by making it a systematic part of being an agent.
Use Your CRM System
As mentioned in the earlier article, State Farm’s agents are trained to use their CRM system to note important events in a customer’s life and reach out accordingly. State Farm’s agents proactively contact customers several times each year and make a real effort to meet face-to-face at least once per year.
What To Do With This Information
The good news is that nothing State Farm does is rocket science. Retention comes down to block-and-tackling: cross selling and building relationships. Learn from State Farm and keep customers when your carrier’s rates are less competitive.