a. The Progressive Story
Progressive is a large company that started the business in 1937. Progressive employs more than 26,000 and its revenue as of 2004 was 1.04B. Progressive distributes its services through telephone, Internet and independent agents. Progressive conducts business in 48 states and the District of Columbia and has organized these 49 jurisdictions into six geographical regions. The Agency and the Direct Businesses are managed at the local level and have three General Managers, each responsible for two regions. The Claims business area has six General Managers responsible for one region each, with managers at the state level. Sales and Service (which includes Agency and Direct customer service, direct sales and claims loss reporting, among other services) is performed at six regional sites in Austin, Taxes; Cleveland, Ohio; Colorado Springs, Colorado; Phoenix, Arizona; Sacramento, California; and Tampa, Florida. The company relies heavily on technology and extensive data gathering and analysis to segment markets and price according to risk potential.
The company has remained competitive by closely managing expenses and achieving operating efficiencies, and by refining its risk measurement and price segmentation skills. Superior customer service, claims adjusting and strong brand recognition are also important factors in the company's competitive strategy.
b. Overview of Products
Personal Automobile is Progressive's primary insurance product. It provides coverage to individuals from basic liability to full coverage. This includes bodily injury, property damage, and physical damage caused by a collision. In addition, many states require policies to provide for first party personal injury protection, frequently referred to as no-fault coverage. Progressive offers personal automobiles insurance to nonstandard, standard and preferred customers. Nonstandard insurance is intended for drivers who because of their driving record, age or vehicle, represent a higher risk thru liability. Standard insurance is intended for drivers with one or...