Progressive

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I. Introduction/Background of the Case (tracy)
II. Statement of the Problem (tracy)
III. Objectives of the Case Study
To be able to maintain the company’s standing when it comes to insurance •To be able to attract customers through creative advertising

IV. Methodologies/Approaches
In a mature market with little year-on-year growth, many auto-insurance companies have reclassified their business between standard and non-standard drivers. Today, non-standard policies account for only about 15 percent of the total auto-insurance market, and for many years the industry’s leaders largely ignored this corner of the business, allowing Progressive to work it aggressively. The company specialized in a top-quality claims service and did not at all worry that it was a high-cost operator. This was a luxury it could afford, knowing that its customers, short of alternatives, would pay up for policies. But in the mid-1980s,giant Allstate, looking around for growth in its essentially mature market, finally focused on how much Progressive was making in its niche and, within a couple of years, outdistanced Progressive in non-standard business. Progressive Insurance is widely considered a best-practice company in customer service. For some time, the company has been relentlessly executing against the focal point of being “easy to do business with.” In order to live up to this reputation, Progressive is an early adopter of and heavy investor in technology. Customer service is vital to value creation in the insurance industry, particularly in auto insurance, which is highly competitive. Progressive Insurance is deploying mobile field service to streamline its claims processes and boost customer satisfaction. Progressive has developed a tool to track individual drivers’ behavior. Once the results are in, drivers will be offered insurance at a rate based on how they perform when behind the wheel. Progressive’s CEO has called this new pilot program, known as...
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