vices arena. Our customers' needs à determine our path."
The industry analysis segment of this strategy analysis must consider each of the sub-sectors of the financial services sector in which the subsidiaries of State Farm Companies operate. State Farm's primary industry focus is insurance. Within the insurance sub-sector of the financial services sector, State Farm companies provides property and casualty insurance, automobile insurance, homeowners insurance, life insurance, and non-medical health insurance (health care services provided by non-medical professionals). Additionally, however, State Farm provides banking services (deposit accounts, certificates of deposit, mortgages, personal loans, and business loans) on a nationwide basis through an online thrift subsidiary. Another State Farm subsidiary offers securities services, limited at present to mutual funds administered by State Farm. The company also operates its own automobile repair company, a service that provides accelerated access to repair work for State Farm automobile insurance customers. Lastly, State Farm, together with RenaissanceRe, created reinsurance firm ù Da Vinci ù based in Bermuda. The reinsurance firm services both State Farm subsidiaries and other insurance firms.
At present, the insurance sub-sector is the most relevant to the operations of State Farm Insurance Companies. In the new future, however, projections indicate that banking services and securities services will assume growing relevance for State Farm Companies.
Negative environmental factors affected some segments of the insurance sub-sector in recent years. Homeowners insurers were hit hard by hurricane damage claims and by mold claims. Automobile insurers were hard hit by both rising accident rates and increasing repair costs. Efforts in some states to control prices increases for several forms of insurance had negative effects on the operations of insurers. The ter...