P&C Specialist reports claims department layoffs at Farmers Insurance
Farmers Insurance cut at least 350 jobs in personal and commercial auto, claims, and distribution last month, according to a P&C Specialist article.
The insurer confirmed that there was a reduction to the publication but not the department or number of layoffs. The article sources a person familiar with the matter for the other details.
A Farmer’s Claims Division employee commented that they were a part of the layoffs on a LinkedIn post of the story.
Smaller reductions at Farmers Insurance happened within the auto repair program, training staff, and commercial lines throughout 2025, according to the article.
P&C Specialist notes that April Bureau of Labor Statistics data shows that the insurance industry has reduced about 9,100 jobs. It adds this is at a time when the U.S. economy added 115,000.
In May, State Farm changed its compensation and benefit package for 19,000 agents, with some saying it would substantially reduce their earnings.
The announcement came after State Farm CEO Jon Farney described the insurance company’s transformation into “A Next Gen Good Neighbor” in a blog post.
A press release that followed talks about faster, simpler claims service, more competitive pricing, and data-driven underwriting. It calls the approach “Human + Digital.”
A month earlier, 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.
The P&C article notes that Allstate, GEICO and USAA have all reduced employees in the past year. It adds that Progressive is the only insurance that has said it plans to make no changes.
Progressive also passed State Farm to take the No. 1 position in annual market share this year, according to data from S&P.
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