Diversity and Inclusion: An Interview with Vincent J. Trosino, Sr., President of State Farm Insurance

State Farm insures more cars than any other insurer in North America and is the leading U.S. home insurer. State Farm's 16,000 agents and 75,000 employees serve nearly 73 million auto, fire and health policies in the U.S. and Canada. State Farm also offers financial-services products through State Farm Bank. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked number 21 on the Fortune 500 list of largest companies.

THE BLACK COLLEGIAN (TBC): Give our readers a brief overview of Stale Farm Insurance Companies.

Vincent J. Trosino, Jr.: We're a mutual company, which means our policyholders own us. We were started in 1922 by George J. Mecherle, a successful farmer who became an equally successful insurance salesman. He was working for another company when he told his employer that he didn't think the rates or business practices of the company suited the needs of farmers. He thought rural farmers should pay less for insurance because they drove less and had fewer losses than people living in more densely populated cities. But when he suggested a different way to sell insurance, his employer laughed and said, "If you think you've got such a good idea, why don't you start your own company?"

TBC: What is the difference between a mutual company and a stock company?

Trosino: As a mutual company we're accountable to our customers rather than stockholders. We aren't tied to short-term quarterly results to measure our success. We can take a long-term view of the actions we take, instead of gauging their immediate impact on stock prices.

TBC: Are there benefits to working for a mutual company?

Trosino: We build our business through internal growth, not acquisitions. Therefore, we don't need access to the capital market, a motivation that has driven some other mutuals to become stock companies. Also, we have thoughtfully examined how our operation can best serve our customers and remain sensitive to our employees' needs. Overall, I'd say we have a better sense of stability working for us because of our mutual status.

TBC: Tell us about your career at State Farm. What was your first job? What route did you take to the top?

Trosino: I graduated from Villanova with a degree in Psychology in 1962. State Farm hired me as a management development trainee in the former Pennsylvania Regional Office and put me into a 53-week training program. It wasn't a great starting salary, but I felt good about the company. The people were warm and friendly and helpful.

I worked my way up through Human Resources and several other insurance operations positions in different regions of the country and at corporate, and then served as regional vice president of our Northeastern Regional Office from 1981 to 1986. In that role, I was responsible for State Farm operations in New York, New Jersey and New England. After that, I joined what we call today the Chairman's Council, and was named President in 1998.

There are many paths to leadership-not all of them are straight or clearly visible from the beginning. It wasn't always easy, and I had to take some risks. In fact, I took a position in California once to get experience back in the insurance side of the business. It was a demotion. At the time, it wasn't the easiest move to explain to my wife Pat. But it was the right move for us in the long run.

TBC: Why is State Farm a good place for Black collegians to start their careers?

Trosino: When starting a career at State Farm, associates quickly realize there are many paths for success. After mastering an initial learning curve, our associates find there are several career options within the company. We value learning agility, business acumen, and associates who step outside of their comfort level to better serve our evolving customer needs.

State Farm encourages associates to continue learning. Everyone is given the opportunity to take classes and develop himself or herself professionally. We are a learning organization.

TBC: What is your vision for diversity at State Farm?

Trosino: Our commitment to diversity starts at the top with our Chairman & CEO, Edward B. Rust, Jr. The whole State Farm management team is committed to an inclusive environment where all associates are treated with respect and dignity and differences are valued. We are committed to having a workforce and an agency force that can iully serve the needs of our increasingly diverse customer population. At Stale Farm, diversity is the collective strength of experiences, skills, talents, perspectives and cultures that each associate brings to State Farm. It's how we create a dynamic business environment to serve our customers. That is the business imperative.

Diversity is a business issue ... it is a human issue ... it is a societal issue. We expect all people who work for us to be respected for who they are, their skills, their abilities and contributions. Our expectation is for all people to be treated in a fair and balanced way.

At State Farm, our diversity initiatives are part of our vision. The vision for diversity and inclusion relates to two categories: Business Logic and Internal Reputation.