3. About Progressive
Joseph Lewis founded Progressive Insurance
Industry in Cleveland, Ohio.
Motive was “to delight the customer, maybe even
shock the consumer a little for competitive
advantage by delivering the unexpected”
4. Progressive and
the Insurance Industry
1956 - Progressive started to write auto insurance f or high risk
drivers and became dominant player
1969 – Motor Insurance Business
1971 – Went Public with headquarter to Mayfield Village, Ohio
Exhibits Details
Exhibit 1 Property Casualty – Product Line
Exhibit 3 Auto Insurance Distribution Channel
Exhibit 4 Market Share
Exhibit 10 Growth Rate of Progressive, Auto Insurance Industry and Property
Casualty
5. A History of innovation
1990
First insurance
provider to
provide 24
hour claims
service at the
accident site
Propositon 103
1992
First insurance
provider to
offer
competitor
quotes as well
as its own.
1800 AUTOPRO
1994
Launched
Immediate
Response
Vehicles (IRVs)
allowing claims
agents to settle
many claims at
the accident
site.
1995
First major
insurance
provider with a
presence on
the Internet
Website
7. IMMEDIATE RESPONSE
The major innovation was progressive’s
implementation of fast service.
Progressive had rewired itself for round-the-clock
service and created new positions.
Advances in wireless technology and cell phones.
Seamless flow of information.
“Hire the best” and “Pay the most”.
8. 1800 AUTOPRO
1-800-AUTOPRO - Auto Insurance Rate Comparison Shopping
Service.
No longer would customers have to spend endless amounts of
time calling around to compare auto insurance rates.
One phone call to AUTO PRO would give customers a
Progressive quote and comparison rates for up to three
competitors.
If the customer was satisfied with the Progressive quote; he
could buy the policy directly on the phone or locally through an
independent agent.
10. Cost absorbed by Progressive were:
GPS Transponder
Cellular Communication System
Small Computer
Drivers who signed up for Autograph were offered:
Theft Recovery
Remote Door Unlocking
Travel Directions
Low-battery Detection
Emergency Assistance Help
Around 1100 policy holder voluntary took Autograph program and
found they are paying 25% less on premium than they paid using
traditional system.
12. ADVANTAGES
• Increased efficiency
• Improved customer response
• More calls completed on the
first visit
• Improved payment cycle
• Up-selling and cross-selling
insurance
policies
• First-mover advantage
DISADVANATAGES
• Higher premiums for
consumers who
commute at night
• High cost
• Lack of privacy
• Focus on new
technologies, losing
sight of the insurance
business
13. Recommendations
• DO NOT EXPAND RIGHT AWAY
• TIME FOR RESEARCH
• STAY IN TEXAS AND EXPAND SLOWLY
• FOCUS ON BIGGER CITIES ONLY
14. LEARNING OUTCOMES
How potential roles of incremental and disruptive
innovation helps in creating and sustaining firm
competitiveness.
Understand the strengths and limitations of current
technologies and apply them intelligently to meet
the needs of each application.
Develop the ability to assess and where necessary,
improve the process of innovation.
Integration of technology and innovation in a best
possible way to provide better and improved
services and satisfying the customers needs