Insurance companies come in all shapes and sizes and in a number of different configurations

The list goes on and on. Some are homeowner's insurance-focused, while others provide medical insurance. Other companies focus on small commercial businesses or huge global corporations. For example, some companies specialize in personal lines, which deal with the activities and property of families and small businesses.

They can be segmented based on different lines of business served. Finally, some companies use a combination of these various distribution systems. We also use independent agents in some new markets. Some sell through independent agents and still others sell through exclusive agents that represent only one company, which is the primary distribution system for Farmers. Providing the opportunity for the American economy to function, funding the mechanics of society through the taxes we pay and investing in the growth of American business is why insurance is so important for keeping the entire free enterprise system working. So, we differentiate ourselves by emphasizing that our value proposition includes personal, face-to-face service. Some companies use affinity-based distribution, marketing to groups of people with similar characteristics, such as occupation. There are some that sell on the Internet. Some companies sell strictly what we call "1-800 low-cost insurance."

Another is by its form of distribution. That's just one dimension of how insurance companies differ. Because there are so many lines of insurance, a company can be differentiated simply by saying. A company can also differentiate itself based on price, but we decided that distinguishing ourselves on price alone is not the right way, because people who shop on price alone tend to move from company to company often. In other words, what do we do best? So, the next step is to differentiate ourselves from these companies in the minds of the consumer. Of course, other large companies are in this segment too. We have a market segment we've identified that we call "Middle America," average families and small businesses.