Phoenix Increases Financial Incentives To Farmers Insurance

Published: Monday, October 7, 2019 - 6:05am
Updated: Monday, October 7, 2019 - 7:25am

An insurance company plans to add hundreds more employees in Phoenix. In exchange, the city’s offering hundreds of thousands of dollars.

Phoenix will pay Farmers Insurance Exchange $1,000 for each new worker who makes at least $44,000 annually in their second year of employment.

According to a city report, Farmers plans to hire more than 900 workers at its regional center between 2019 and 2023. The council approved the $250,000 incentive package last week.

Three years ago, the council approved a $500,000 package to convince Farmers to open its operations center near Interstate 17 and Pinnacle Peak Road. At that time, the California-based insurer announced plans to move its estimated 500 employees and hire another 1,000 between 2016 and 2019.

A city report cites a third-party economic impact analysis that indicates the direct revenue to Phoenix will be about $23.7 million over 10 years.