Leo and Lilian Goodwin first started the Government Employee Insurance Company in Fort Worth, TX in 1936, at the height of the Great Depression. Their target demographic was military members, federal workers, and their families in order to offer them affordable automotive insurance. Their largest competitor for this target demographic is another Texas-based insurance, securities, and banking company, USAA. USAA started in 1922, founded by 25 US Army Officers and has been headquartered in San Antonio, TX since.
Unlike GEICO, who has expanded its customer base to non-military and non-governmental employees, USAA still excludes services and membership to current military members, DoD employees, veterans, and their families. This presents a healthy, competitive, capitalism-based market environment.
In 1951, progressive ideologue Warren Buffet started investing in GEICO, eventually becoming one if its top shareholders. Despite his political rhetoric promoting Keynesian economic policies, Buffet has kept most of GEICO's major operations in Texas with its Southwest Regional Headquarters in Dallas, TX. It appears even Keyenisan Economic Policy proponents prefer the Austrian School Economic Policies currently at work in Texas.
GEICO CEO Tony Nicely announced that the company is expanding its operations in Katy,TX. The expansion plans predict the creation of up to 1,000 new jobs and capital investments of near $8.5 million over the next three years.
"We're excited about expanding our claims operations with our new Katy office. We know from the experience we've already had in Houston that it's a great environment for business; the workforce is excellent, and the quality of life is outstanding. We look forward to bringing more wonderful career opportunities to the people of the Greater Houston area."Concerning Nicely's announcement, Texas Commissioner of Insurance Julia Rathgeber remarked:
"It's great news when companies like GEICO grow and expand their operations in the Texas insurance marketplace. Texas is the 12th largest insurance market in the world. We are consistently looking for ways to improve and make Texas a smarter regulatory environment with the goal of attracting more companies and more capital to Texas. A competitive market is good for the industry and good for consumers."
Governor Rick Perry joined Nicely at the official announcement gathering in Katy, TX. The Governor offered these words:
"Whenever we hear about a major employer expanding or relocating to Texas, it affirms what we've been telling people all these years. When you create a place that rewards innovation and hard work and frees people to do best in pursuit of their dreams, good things happen. Like many cutting-edge companies, GEICO knows that Texas is a great destination for innovative companies looking to excel."