Prepare for your State Farm interview

Underwriting and actuarial rounds calibrated to State Farm's focus on auto and homeowners risk assessment, pricing discipline, and claims management.

Socratify AI

The Interview

What State Farm is looking for

Underwriting Interview

Underwriting Analysis

01Risk Selection

02Combined Ratio Analysis

03Rate Adequacy

04Portfolio Management

Actuarial Interview

Actuarial & Pricing

01Loss Development

02Frequency & Severity

03Reserve Analysis

04Predictive Modeling

State Farm is the largest P&C insurer — interview cases focus on scale//Auto and homeowners lines dominate the case portfolio//Mutual structure means focus on policyholder value, not shareholder returns

Practice Library

State Farm exercises

Ready to ace your State Farm interview?

Prepare for your State Farm interview

Underwriting and actuarial rounds calibrated to State Farm's focus on auto and homeowners risk assessment, pricing discipline, and claims management.

Socratify AI

The Interview

What State Farm is looking for

Underwriting Interview

Underwriting Analysis

01Risk Selection

02Combined Ratio Analysis

03Rate Adequacy

04Portfolio Management

Actuarial Interview

Actuarial & Pricing

01Loss Development

02Frequency & Severity

03Reserve Analysis

04Predictive Modeling

How It Works

Master State Farm Interviews

Underwriting and actuarial rounds scored on risk assessment rigor and pricing discipline. · Click to expand

1Your Insurance Goals

Risk Assessment

Practitioner

Portfolio Management

Practitioner

2Insurance Case Prep

State Farm’s auto insurance combined ratio has deteriorated 8pp in 2 years due to claims...

CASE INTERVIEWHard

State Farm

3Frameworks

Framework

Is the loss ratio driving the deterioration?

Has claims frequency increased?

Auto claims frequency: +14% YoY, driven by distracted driving uptick

Property claims: +22% from 3 consecutive above-average cat seasons

Has claims severity worsened?

Average auto claim severity: $4,800 → $6,100 (+27%) due to parts inflation

Litigation rate on bodily injury claims: 18% → 26%, driving avg settlement +35%

Is the expense ratio contributing?

Are acquisition costs excessive?

Commission ratio: 16.2% vs. industry benchmark 13.8%

Direct-to-consumer channel: only 11% of new policies vs. 34% industry avg

Are operating expenses bloated?

Claims processing cost per claim: $1,240 vs. $780 for top-quartile peers

Legacy systems: 40% of IT spend on mainframe maintenance

Are reserves adequately set?

Are prior-year reserves developing adversely?

Prior-year reserve strengthening: $47M in last 2 years (3.1pp combined ratio impact)

Long-tail liability lines: 72% of adverse development

Is rate adequacy keeping pace with loss trends?

Rate increases filed: +8% avg; loss trend: +15% — 7pp gap widening

Regulatory approval lag: 4-9 months in top-5 states by premium volume

4Feedback

Risk Assessment

Distinctive

Portfolio Management

Strong

Regulatory Compliance

Meeting Bar

Claims Strategy

Strong

Repeat

Practice Library

State Farm exercises

State Farm's auto combined ratio rose 6 points. Decompose the drivers across frequency,...

LEARNMedium

Insurance · Combined Ratio AnalysisState Farm

State Farm is evaluating a shift to usage-based auto pricing. Model the impact on...

CASE INTERVIEWHard

Insurance · Pricing InnovationState Farm

How would you assess the adequacy of State Farm's homeowners reserves given 3...

LEARNMedium

Insurance · Reserve AnalysisState Farm

Tell me about a time you used data analysis to identify a trend that others missed.

BEHAVIORALMedium

Behavioral · Analytical ThinkingState Farm

Describe a time you had to explain a complex technical analysis to a non-technical...

BEHAVIORALMedium

Behavioral · CommunicationState Farm