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On January 17, 2004, Bankers Life and Casualty Company celebrated its
125th year of existence. Its longevity alone is remarkable. The company
survived the economic peril of the Great Depression and continued
operations through two World Wars. It has witnessed the rise of
American industry in the 1800s and the ongoing technological revolution
of the 21st century.
What is more remarkable is how Bankers evolved from a group of 19th
century hotel owners and workers in need of insurance into one of
America's leading providers of lifestyle protection and retirement
savings solutions for seniors. The Bankers story is a tale of change
and innovation - one of struggle and triumph.
The Early Years
Bankers' predecessor company, the Hotel Men's Mutual Benefit Association
of the United States and Canada, commenced operations on January 17, 1879.
Fifty-six years later, in 1935, Chicago insurance man
John D. MacArthur borrowed $2,500 to purchase an insolvent Bankers
Life and Casualty Company from the Illinois Department of Insurance.
Hotel Men's Mutual Benefit Association, the Illinois Standard Life
Insurance Company and Bankers Life and Casualty Company merged in 1942
to form one company, operating under the Bankers Life and Casualty
Company name. John D. MacArthur became president of the merged
companies in 1945.
Innovation, Strength and Stability
MacArthur studied the sales methods of the great American manufacturers
who had mass marketed soaps, toothpaste, cosmetics, foods and branded
merchandise of all kinds. He saw traditional methods of selling insurance
as both expensive and wasteful and reasoned that if he could reduce the
high cost of selling, he could reduce the cost of insurance and make
coverage affordable to the common man.
From Bankers' north side Chicago Home Office on Lawrence Avenue,
MacArthur developed the concept of mass marketing low cost health
insurance policies through the mail and Bankers' business began to boom.
Its meteoric rise to success during the late 1940s and early 1950s was
unparalleled. Bankers quickly went from a pre-WWII home office staff
of 50 to over 2,000 employees.
Bankers' sales force, then commonly referred to as "White Cross Men",
canvassed the country and Bankers' White Cross logo became a symbol of
strength and stability. In 1945 Bankers Life and Casualty Company operated
solely in Illinois and total premium was only slightly over $1 million.
By the end of 1956, the White Cross Plan spanned most of the nation and
Bankers' life insurance in force totaled over a half billion dollars.
A Pioneer in the Senior Market
In the 1960s, Bankers turned its attention to a new frontier, America's
growing senior population. The Medicare bill, which provides health insurance
for elderly Americans under social security, was signed into law by President
Lyndon Johnson on July 30, 1965. Shortly thereafter, Bankers became one of
the first companies in America to offer Medicare supplement insurance.
In the 1970's, Bankers went on to become one of the first companies to
develop and market nursing home insurance. Bankers expanded its portfolio
of products to include retirement savings products by entering the fixed
annuity business in 1977.
At the time of MacArthur's death in January 1978, Bankers' assets had
surpassed $1 billion. Without the foresight of MacArthur and others at
Bankers in the 1960s, Bankers would be a very different company today.
Bankers Today and Tomorrow
Bankers' vision is to become America's leading provider of lifestyle protection
and retirement savings solutions for seniors. The company is market focused rather
than product focused, and is well positioned to achieve this goal. It is the only
broad-based financial services organization in the nation that is willing and able
to make the claim "We Specialize in Seniors."
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