State Farm details ‘A Next Gen Good Neighbor’ transformation and Human + Digital concept

State Farm CEO Jon Farney recently described the insurance company’s transformation into “A Next Gen Good Neighbor” in a recent blog. 

He writes that the company’s focus remains on helping customers protect what matters most and prepare for what’s next. 

“Today, State Farm insures more homes and autos in the United States than anyone else,” Farney writes. “Across the country, State Farm agents and tens of thousands of employees show up every day to help millions of customers by answering questions, guiding tough decisions, and being there when life takes an unexpected turn.”

He claims that as a mutual company, State Farm answers to Main Street, not Wall Street. 

“In a world that can feel increasingly disconnected, State Farm agents provide local presence, trusted guidance, and community,” Farney writes. “And as we modernize, we’re doing it with the clear principle that technology should strengthen human connection, not substitute for it.”

A “Next Gen Good Neighbor” is faster and tech-enabled, while staying true to the company’s values, he writes. He said this means fewer steps for customers, faster answers, and more competitive steps through digital tools that reduce paperwork and speed up updates. 

It means less direction and more impact with clearer information in one place for agents and employees, he writes. He added this includes fewer handoffs and better tools. 

“We’re listening closely to what customers need, investing in the future, and raising the bar for what it means to be a Good Neighbor in a changing world,” Farney writes. “As a ‘Next Gen Good Neighbor,’ we’ll keep measuring our progress the way customers do — by showing up, following through, and delivering when it matters most.”

A Tuesday press release from State Farm follows Farney’s blog, which describes the transition in more detail. 

It talks about faster, simpler claims service, more competitive pricing, and data-driven underwriting. It calls the approach “Human + Digital.” 

The release states that State Farm is making the end-to-end claims process faster, from first notice of loss to payment delivered. 

“Claims professionals are making coverage and payment decisions supported by tools that streamline intake, triage, and documentation,” the release states. “The company is also piloting an AI-powered virtual assistant to streamline initial loss-reporting to quickly connect customers to support services and gather information needed to help.”

It adds that the company continues to deliver value to customers by finding new efficiencies in the way it works, improving processes, and developing and supporting employees and agents. 

“State Farm serves customers, not shareholders; it demonstrated this in February, announcing a $5 billion dividend for State Farm Mutual Automobile Insurance Company auto customers,” the release states. 

Underwriting and pricing models continue to be built with advanced data, tools, and inputs, the release states. This includes voluntarily using customer-provided telematics information through the Drive Safe & Save program. 

Overall, the Human + Digital concept is a connected experience where technology and people work together to enhance the customer experience, the release states. This includes consolidating disconnected systems into a single infrastructure platform, making the company a destination for well-versed top talent, and working with leading tech companies, including OpenAI, to apply AI strategically. 

The collision industry has been vocal in recent months about changes it has seen from State Farm, including moving to centralized auto claim audit teams and cutting labor rates. 

Last month, Michael Bradshaw, vice president of K&M Collision in Hickory, voiced concerns about State Farm during a Society of Collision Repair Specialists (SCRS) open board meeting and Collision Industry Conference meeting.  

He described how centralized internal review teams have been removing operations that State Farm appraisers have identified. He added that the operations are removed without discussion with the body shop or any proper documentation or explanation. 

Changes made to the estimate are completed by nameless individuals on the review team, he said. 

“In fact, the names of those individuals are specifically excluded from the claim file for this purpose because they don’t want to be identified,” Bradshaw said. 

A Facebook video posted by Ryan Campbell, owner of Campbell Paintless Dent Repair in Ohio, details how State Farm can change estimates. 

“I feel that everybody needs to know how these insurance companies, especially State Farm, are working and operating,”  he says on Facebook Live. “It is not only fraudulent, it is not right.” 

The video shows hail damage on a new vehicle with 745 miles. 

A first estimate from State Farm was $10,000 for the damage, Campbell said. A second was $23,000 but still didn’t cover the full cost to repair, he said. 

The State Farm estimate included aftermarket parts for the hood, fender, and windshield and used recycled parts for a rail and quarter panel he said. 

Campbell questioned the use of aftermarket and recycled parts on a new vehicle that still had its 30-day temporary tags. 

He questioned whether he would keep accepting vehicles covered by State Farm, but noted that he doesn’t want to turn his customers away. 

“We don’t want another shop to fix this with used parts,” Campbell said. 

An in-person appraiser was not used by State Farm for the estimate, Campbell told Repairer Driven News Thursday. He said photos had to be submitted but the software wouldn’t accept the number of pictures necessary to document the damage accurately. 

“It is a battle with their AI and all their software,” Campbell said. 

Campbell added that he has spent days and months attempting to resolve State Farm estimates. 

“Shops eventually give up,” Campbell said. “That is what [State Farm] is pushing for.” 

Earlier this month, the California Department of Insurance announced it found 398 violations related to State Farm’s handling of wildfire claims. 

In Missouri, Fox 4 reports that U.S. Sen. Josh Hawley is threatening to subpoena State Farm if it doesn’t comply with an inquiry he sent them last month. 

Hawley demanded that State Farm pay policyholders for tornado damage that occurred in 2025, and asked the company to answer questions about its claim practices in the state in a letter that he made public in April. 

He gave the insurer until May 14 to answer questions, including how many insurance claims were brought by property owners and how many policyholders had yet to receive a final adjudication. 

Hawley notes that just days before the storm, a State Farm executive testified under oath before his subcommittee that the company pays its policyholders “promptly, courteously, and efficiently.” 

“It is disappointing, but not surprising, that these words were an empty promise,” Hawley said. 

During the subcommittee hearing, Hawley grilled Allstate and State Farm executives, saying testimony from adjusters and policyholders, along with previous lawsuits, appears to show the companies are “running a racket” and “pattern of fraud” while making “outrageous profits.”  

The Homeland Security & Governmental Affairs Subcommittee on Disaster Management, District of Columbia, and Census heard from two adjusters who testified that they were pressured to lower estimates. 

A P&C Specialist article, also recently explored changes State Farm has made to its auto claim practices, including moving to centralized auto claim audit teams and cutting labor rates. 

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