GEICO stands for Government Employees Insurance Company. This name was adopted based on the roots from which the Company has matured. Its founder Leo Goodwin first decided to target military and government employees but the business further expanded to include services for wide range of customers.
During the Great depression in the United States in the 1930’s, Mr. Goodwin and his wife Lillian thought up the concept for the Company in the assurance that they could make it a successful motor insurance business. Adopting direct marketing strategies they set out to cater to the specific customer targets. Mr. Goodwin prepared his business plan and established the Company in 1936.
In support of her husband’s initiatives, Lillian Goodwin became the marketing officer and administrative support for the very humble company. The hard work paid off seeing Geico employ twelve employees in its first year of operation and writing 3,700 policies. In the late 1940’s with investors deciding to change focus, Lorimer Davidson teamed up with the Goodwins to provide investment guidance and support to help expand and continue the business started during the Depression. Interested investors such as Warren Buffet later came on board to provide financial backbone to the Company and in the early 1950’s the first Geico stock was bought.
Leo Goodwin retired in 1958, and Davidson then became the new head of Geico. One year later, GEICO opened its new location in Chevy Chase, Maryland, with over 20 years of consistent success under its belt. The Company saw growth in the 1950s through to the 60’s having in excess of 1 million policy holders in 1964. Important markers of success came in 1965 and 1966 with premiums reaching 150 million and 100% increase in net earnings respectively. Thereafter the Company experienced some changes in management after the death of founders. Geico’s focus was then moved to managing its underwriting and reserves portfolio. In the subsequent years, Geico adopted a bolder vision pioneering 24 hour claims and sales service via telephone emphasizing the need for superior customer service. In the 1990’s Geico propelled itself through its visibility via extensive national advertisement campaign. Catching onto the momentum later in 2000, the Company’s marketing icon Gecko first appeared in media which only brought more popularity for the Company.
Four years later the slogan so easy a caveman could do it was used by the Company to garner more business via appeal to television audiences. Geico has fast become a household commodity and continues to add valuable services and expand its ability to reach and satisfy customers using the internet as primary tool for electronic access.