State Farm closing Downers Grove office employing hundreds – Finance News

on May6

5 May 2017 | 6:03 pm

State Farm is closing 11 offices nationwide over the next four years, including one in west suburban Downers Grove employing 460.

The Bloomington-based insurance giant doubled the size of the Downers Grove office six years ago, consolidating workers there who’d been in other parts of the Chicago area. Many of them process claims for insured drivers.

Now, State Farm will shutter the operation in 2020, consolidating Downers Grove’s functions in Bloomington, Dallas, Phoenix and Atlanta. Most workers will be offered jobs elsewhere in the company if they’re willing to move, a spokesman emailed.

The Downers Grove move is part of a large-scale efficiency initiative affecting 4,200 workers in State Farm’s auto insurance unit, which was announced yesterday. The company as a whole employs nearly 70,000 nationwide.

Over the next four years, State Farm also is closing offices in Parsippany, N.J.; Petaluma, Calif.; Irvine, Calif.; Kalamazoo, Mich.; Tulsa, Okla; Indianapolis; Medley, Fla.; West Lafayette, Ind.; Bakersfield, Calif.; and Frederick, Md.

State Farm said it was providing at least a year’s notice and up to four years’ notice to affected workers to give them time to plan.

The move is not surprising in light of last year’s results. State Farm’s auto unit absorbed a $7 billion underwriting loss, the largest loss in its 95-year history of insuring cars.

The nation’s largest car insurer has been raising rates on drivers to cope with a substantial increase in car accidents and claims.



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