Nationwide Mutual Insurance Company

Beginnings as Farm Bureau Mutual

In the 1920s, farmers were paying the same rates on their automobile insurance as city drivers even though they had fewer accidents and claims than city drivers. The Ohio Farm Bureau decided to set up its own insurance company to offer rates that accurately reflected the driving habits of farmers. On April 10, 1926, the Farm Bureau Mutual Automobile Insurance Company obtained a license to do business in Ohio, and two days later, it acquired its financing—a $10,000 loan drawn from the membership dues of the Ohio Farm Bureau Federation.

At that time, Ohio law required 100 people to pledge to become policyholders. The first agents managed to recruit ten times that number, and on April 14, 1926, Farm Bureau Mutual started a business with over 1,000 policyholders. The first product of the new company, as its name implied, was automobile insurance. The company wrote policies only to Ohio farmers who were members for the Ohio Farm Bureau.

Expansion

In 1928, Farm Bureau Mutual expanded to West Virginia, followed by Maryland, Delaware, Vermont, and North Carolina. Farm Bureau Mutual began underwriting residents of small towns in 1931 and residents in larger cities in 1934. Also, in 1934, Farm Bureau Mutual began offering fire insurance. This product grew the following year with the purchase of a struggling fire insurance company.

In 1935, Farm Bureau Mutual acquired the Life Insurance Company of America from the bankrupt fraternal insurer, American Insurance Union. The company was later renamed to Farm Bureau Life Insurance Company in 1938.

With growth, came a need for the expansion of office space. In 1936, the company moved into the 246 Building at 246 N. High Street in Columbus.

By 1943, Farm Bureau Mutual operated in 12 states and the District of Columbia. Even with the tripling of space in the 246 Building (which was finally dedicated on the 25th anniversary of the company), Farm Bureau Mutual still had insufficient office space and began opening regional offices in 1951.

In 1955, Farm Bureau Mutual changed its name to Nationwide Insurance, a name by which it is commonly known today. In the 10 years that followed, Nationwide expanded into Oregon, making the company truly "nationwide". It also expanded into 19 other states, bringing the total by 1965 to 32 states and the District of Columbia.

Nationwide outgrew the 246 Building by the 1970s, and work began on a new skyscraper headquarters for the company. In 1978, One Nationwide Plaza was completed at the southwest corner of N. High Street and Nationwide Blvd. on the northern edge of downtown Columbus, Ohio. Since 1988, Nationwide has added the following to its presence in Downtown Columbus: Plaza Two (on the northeast corner of High Street and Chestnut), Plaza Three (just west of High Street and Chestnut), Plaza Four (Front Street), 275 Marconi (behind Plazas One and Three on Marconi Blvd), and 10 West Nationwide, which together with Plaza One form the primary downtown complex. In addition to downtown Columbus, Nationwide also has a significant presence in the Columbus, Ohio metropolitan suburbs of Dublin, Grandview Heights, and Grove City.

Enterprise Collaboration

Nationwide's internal collaboration platform "SPOT" is an advanced enterprise social media platform that combines Yammer and SharePoint to provide a unified experience to Nationwide employees.

Mobile claims application

In 2009, Nationwide released Nationwide Mobile, a free iPhone application for Nationwide auto insurance customers and other iPhone users. The app is designed to assist drivers with the steps to take after an accident. It also helps Nationwide customers start the claims process, finds Nationwide-certified local repair shops, and facilitates the exchange of accident and insurance information. Nationwide was the first US insurer to offer such an application for the iPhone.

Controversies

Death benefit controversy

In October 2012, Nationwide agreed to pay $7.2 million to resolve a market conduct investigation by a multistate insurance regulator task force regarding its use of the Social Security Death Master File database for paying life insurance claims. Life insurance policies make it clear that it is up to the beneficiaries to notify the insurer. Most insured do notify their insurance companies but as a result of this exam Nationwide identified $144 million in benefits that had not been paid because of customers' failure to file a claims report. The agreement was announced by California Insurance Commissioner Dave Jones on behalf of California, Florida, Illinois, New Hampshire, North Dakota, Pennsylvania, and Ohio. The settlement reached with the state insurance regulators will commit Nationwide and other insurers to compare its records against the Social Security Death Index and conduct a search for beneficiaries.

Claims of bad faith

In June 2014, Nationwide was hit with an $18 million punitive damages award after a plaintiff proved the company "strong-armed its policyholder rather than negotiating in good faith to compensate the plaintiff for the loss suffered in an automobile collision."

Super Bowl ad

During the second quarter of Super Bowl XLIX, Nationwide aired a controversial commercial to promote its Make Safe Happen child safety website and initiative, in which a deceased boy reflects on what life milestones he could not partake in due to his premature death in an accident. The advertisement was scorned and ridiculed by many as morbid, disturbing, and in poor taste against the backdrop of a major, upbeat professional sports event. Following its negative reception, Nationwide released a statement defending its decision to air the ad, explaining that child safety is a serious issue that must be addressed.