State Farm was founded in 1922 on the basic principle that farmers who drive much less than the average person and incur fewer damages throughout the year should pay less for their auto insurance. Local farmers enjoyed the idea and quickly spread it throughout the state of Illinois, and eventually the rest of the United States. In 1938 State Farm expanded its business internationally by offering policies and opening claim offices in Canada; they have maintained these offices to this day. By 1942 State Farm became the largest insurance agency in the US, and has held the title every year since. 1962 saw the first ever "good student discount" and 1964 brought with it the confirmation that State Farm was the largest insurance writer in the world. With all the success State Farm had, it developed many subsidiary companies specializing in everything from fire insurance to major catastrophe insurance. State Farm currently employs over 68,000 people worldwide and processes over $4 billion dollars in gross premiums per year.