Gieco

When Leo Goodwin founded Gieco, the man believed that auto insurance prices could be lowered simply by marketing plans directly aimed at pre-selected groups of consumers. He took this one step further by deciding what groups should be targeted, and selecting those groups ahead of time. This helped Gieco begin turning a profit because it reduced the company's overhead operating costs, something that was very successful for the company. In turn, the company believed that their customers should benefit from their lower costs. Even today customers will find that their costs are lower simply because Gieco continues to lower their operating costs. Warren Buffet headed up the Berkshire Hathaway company and was known as one of the better investors worldwide. In 1996 his company became the parent company with Gieco acting as one of their subsidiaries. As always, the company maintains a prominent position with the US Military. In addition the company provides insurance and coverage in a number of areas: life, personal umbrella protection, mobile homes, apartments, homes, boats, motorcycles, and automobile insurance.

Gieco History

Two names long since associated with the history of Gieco are Leo and Lillian Goodwin. During the Great Depression the Goodwin's decided to start a company called the Government Employees Insurance Company. In 1930 Leo believed that the best way to make a profit was to market products directly to customers, which would lower operating costs and help keep those costs under control. The company officially launched in 1936 out of an office in Washington DC, with Lillian serving as a bookkeeper. Lillian was professionally trained in the field, and helped tremendously during those early years. By the end of 1936 Gieco had almost 3,700 policies and employed 12 workers on their staff. Leo and Gieco received help in 1948 when a close friend by the name of Lorimar Davidson helped secure more investors, bringing more money to the company. That led to a large number of investors joining in, including a man by the name of Warren Buffet. Buffet was associated with the company for many years. When Goodwin decided to retire in 1958, Davidson became the new leader. The following year the company moved their headquarters to Chevy Chase, Maryland.

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Gieco began experiencing new changes and growth in the following decades. By the end of 1964 the company reached 1 million policyholders. To better meet the needs of their customer base, Gieco began opening different sale and service centers all around the country, and at the same time their net profits doubled. A sad moment in their history came during the 1970s when the Goodwins passed away. At the same time they saw their growth and expansions falter. Once things began changing again, they focused on strengthen their company to keep the same thing from happening again. Warren Buffet purchased a large number of Gieco shares in 1976. The 1980's were a boom time for the company as they continued to grow and expand. They also began supplying 24 hour, 365 days a year telephone support for customers. The Chairman, President, and CEO of Gieco changed in 1993 when Olza Tony Nicely took control. They then changed their focus to marketing and advertising campaigns to bring in more customers and to increase their market penetration. This change helped Gieco gain more attention in the insurance market. Berkshire Hathaway later purchased the remaining outstanding Gieco shares in 1996, making the company a complete subsidiary of the larger company.

Gieco continued to maintain their expansion in the market, and also grew even more when they began launching television commercials and other types of advertising campaigns. In the year 2000 they began showing the Gieco gecko, and his first commercial was an instant hit with consumers and marketing execs alike. Before long this little gecko was synonymous with the company. The International Insurance Society Hall of Fame officially named Leo Goodwin a member in 2001. Two years later the company reached their long-term goal of having over 5 million policyholders. That helped the company organize and open more service centers all across the country. Gieco made their way back into the auto insurance field in a number of states during 2004, which they had hoped to accomplish. This helped the company reach their new goal of 6 million policyholders. Today Gieco remains devoted to providing excellent customer service, lower prices, and outstanding coverage. They still work on finding ways to lower their operating costs, and to pass those savings along to their customers through lower premiums.

Gieco Profile

Gieco is one of the top four insurers of private passenger automobiles in the country, and the largest underwriter of such insurance in the United States. The company currently operates 12 major offices in the US, and employees over 21,000 workers throughout the country. They are worth an estimated $21.2 billion in terms of assets. To reach their website, visit Gieco.com.

Gieco Additional Information

Gieco is an acronym standing for the Government Employees Insurance Companies, and is based in the United States. Leo and Lillian Goodwin originally founded the company in the private sector as a way to bring insurance and to market insurance directly to federal government employees and their families. They also hoped to show themselves as a stable company for investors, which would lessen the risks associated with making an investment. The 1970's saw a change in the company when they began offering insurance policies to the general public. This could be done because they could now access records in a shorter amount of time. Gieco places an emphasis on personal communication with customers, by using the internet and phone calls to communicate. Field agents are also available, and many base their offices in areas with a large military force.

To remain ahead of the game, Gieco has utilized a process of changing their strategies and policies when needed. This includes changing their marketing strategy throughout the years, and some of their ads have been well received and also given the company its own mascot. The Gieco gecko was originally created by the Martin Agency, with the actual CGI and creation of the creature done by the Rhythm and Hues Studio. The gecko has a British accent and frequently tells people that he is often confused with the company since their names sound similar. Controversy erupted over the commercials, with some saying that the claims or theme of the commercials were misdirected. However those claims were later dismissed. In 2005 they shifted their focus temporarily to a set of modern day cave dwellers who took offense to the claim that Gieco was so easy, a caveman could do it. The characters were later spun off into their own television sitcom. Today the company continues to use popular culture to make their commercials.