...of Business and Governance Entrepreneurship Department Progressive Insurance: A Case Study Submitted to: Mr. Rey Navacilla Submitted by: John Paul Dela Vega Jose Antonio Kintanar Clarence Mitchell Sy Dayle Lois Tulang John Way Keith Medina Table of Contents I. Introduction…………………………………………………..…… II. Statement of the Problem…………………………………..…... III. Objectives of the Case Study………………………………..…. IV. Methodologies and Approaches…………………………….… V. Analysis of the Case a. Qualitative Tool: Fishbone Diagram………….…. b. Quantitative Tool: Decision Tree Analysis……. VI. Alternative Courses of Action (ACAs) c. Alternative Course 1……………………………..… d. Alternative Course 2……………………………….. e. Alternative Course 3……………………………..… VII. Significant Findings…………………………………………….. f. Positive Findings…………………………………… g. Negative Findings………………………………….. VIII. Recommendations…………………………………………….... IX. Conclusions……………………………………………………… I. Introduction Progressive Insurance, an automobile insurer company, which is based in Mayfield Village, Ohio. On the year of 1991 Progressive Insurance had approximately $1.3 Billion in their sales. When the year of 2006 came that $1.3 Billion in sales suddenly became $14.5 Billion. What did they do to make this figures increase so high? Nothing. For 15 years Progressive insurance just did little advertising, and some of its campaign was...
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...Progr Progressive Insurance[1] If you‘ve ever been in a car accident, you know how it feels to wait for your claim payment to arrive. Insurance companies love to hold the money as long as possible to keep every penny of interest. Progressive Insurance is the notable exception to the industry rule: It tries to pay as quickly as it can – by getting claims adjusters out of the office and onto the street where they can interact with clients. The logic behind such a radical notion? Happier customers and more productive claims reps will more than make up for the lost interest revenue. At Progressive, that radical notion is based on IRV, which stands for “immediate response vehicle,” a fleet of SUVs loaded with enough communications gear – laptops, printers, and cell phones – to allow adjusters to settle claims right at the scene of the accident. That’s a big improvement over the scenario that still pervades the industry: Wait a week or two to see the car and make hand written notes, snap photos, drive back to the office, type it all into the mainframe computer, and issue a request for a check. Ten years ago, the IRV project involved just 10 adjusters in Florida. Today more than 11,000 mobile claims reps share a fleet of 2,600 IRVs. Not only did the program help improve customer retention by 20% last year; it has helped Progressive shave labor costs. Progressive’s mobile adjusters can handle nearly twice the workload they could a decade ago. IRVs have also helped revenues...
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...Assignment question: 1. What is Progressive’s business? a. Insurance Company b. Personal automobile insurance c. Property-casualty insurance d. Primary liability and physical damage insurance for automobiles and trucks owned by business primarily e. Professional liability insurance to community banks, directors, and officers f. Pet Injury coverage g. Usage-based insurance h. Insurance-related service 2. What is critical to the success of the business? a. High customer satisfaction, “Immediate response vehicle” b. Enough communications gear-laptops, printers, and cell phones c. Lower labor costs d. Mobile adjusters e. Wireless laptop (access to mainframe computer) f. Fax machines as printers to get hard copies g. Agents talk to clients often h. Auto shop i. Dispatchers monitor agents’ locations j. Digital cameras k. Collect information effectively l. Ink-jet printer to get copies of estimates, claims, and checks m. Effective and creative advertisement n. Snapshot o. New products and hardware p. Be able to offer discount 3. How does Progressive’s use of hardware contribute to these success factors Critical Success Factor | Type of Hardware | Contributions | * High customer satisfaction * Lower cost | IRV | * Pay as quick as it can * Improve customer retention * Increase revenue | * Agents talk to clients often...
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...Robert Powers September 29, 2013 MIS2701 71306 Dr. Richard M. Kesner Progressive Insurance Assignment question: 1. What is Progressive’s business? a. Insurance Protection b. Settle claims quickly c. Inspect vehicles d. Issue checks – damages compensation e. Immediate Response Vehicles (IRV). f. Security and Protection g. Estimates 2. What is critical to the success of the business? a. Management of Data (better control/less fraud) b. Claims payment as quickly as possible c. IRV’s ability to settle claims right at the scene of the accident d. Mobile adjusters (on the street instead of in the office) 3. How does Progressive’s use of hardware contribute to these success factors? |Critical Success Factor |Type of Hardware |Contributions | |Management of Data |Laptops |Access customer’s policy and transmit. Upload all information | | | |Print checks and other documents | | |Printers |Contact others when needed | | |Cell phones |Take photos of accident scene and damages | | ...
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...Please allow this correspondence to provide you with our initial coverage analysis concerning this claim. The Progressive Casualty Insurance Company (“Progressive”) has requested our legal analysis, and has specifically asked whether it has a duty to defend Tristate Trucking, LLC (“Tristate” or the “insured”) in litigation filed in the Superior Court of New Jersey Law Division Monmouth County, No. MON-L-3550-16 (the “lawsuit”). Additionally, Progressive has inquired as to whether it will have a duty to indemnify Tristate, Mylesa Walton, Michael Peavy, or Nazir Peavy (collectively the “Plaintiffs”) in the event that the Plaintiffs obtain a final judgment with respect to the “lawsuit. Progressive’s potential obligations arise out of the insured’s...
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...ADDITIONAL NOTE ON PROGRESSIVE CASE (TO BE CONSIDERED FOR CASE ANALYSIS) In March 2000 Progressive began to offer a new product: homeowners insurance. Made available first in an Arizona pilot, the program was extended to Michigan in October 2000, Maryland in January 2001, and Illinois in September 2001. Marketed initially through specially selected and trained independent insurance agents, Progressive’s homeowners policies were eventually to be\ offered, along with its primary product, auto insurance, through the company’s two direct channels, its 800-number and web site. Many consumers sought the convenience of bundling auto and homeowners insurance rather than dealing with separate companies for each policy. Some insurers even offered discounts to customers who consolidated their coverage. Progressive executives thus viewed homeowners insurance as a natural extension of the company’s auto-insurance product suite. In 1997 Progressive ran a trial partnership in Ohio with Travellers Casualty, a major player in homeowners insurance, whereby consumers were offered homeowners quotes when they called for auto insurance. By 2000, Progressive had decided to offer its own homeowners product. 2 The product was launched slowly in select states. The move into homeowners seemed an obvious choice for Progressive. The data-driven company had success in providing auto insurance rates that more accurately (and less expensively) reflected individual consumers’ coverage needs. Cross-selling to...
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...Case 4: Progressive Corporation http://www.allbestessays.com/Book-Reports/Progressive-Corporation/20799.html What challenges does Progressive face in 2007? What would you recommend to CEO Glenn Renwick? Challenges: In 2006, insurance rates were softening but Progressive was determined to hold prices firm. Renwick argued that the recent high industry profitability was driven by unanticipated falling accident frequency and that this would not continue. He also pointed out that the difference in price might not be big enough to reflect market share, there might be many reasons for this, but the important issue was that Progressive didn’t know the reason. The second challenge was that the customer’s perception of Progressive differed from the Company’s self-perception as a champion of its customers. While Progressives goal was to be the consumer’s #1 choice for auto insurance, JD Power and Associates gave the Company a below average score for the overall customer satisfaction and ranked it 14. Progressive also scored below average for collision repair satisfaction and also ranked 14. The third challenge was consumer awareness of the Progressive brand. In 2006, Progressive had achieved 57% unaided brand awareness, up from 53%. This put the brand in the top four, but well behind GEICO(79%), Allstate (69%), and State Farm (74%) who had been advertising for many years. Moreover, the leaders were increasing their advertising support aggressively. Recommendation: The...
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...BUSINESS AND GOVERNANCE PROGRESSIVE INSURANCE CASE STUDY MGT. 428 MWF 12:25-1:25pm SUBMITTED BY: CHERRY MAY BIROG KENNETH MAGARIN KATHY MONTINOLA CHARLENE ELAINE LOPEZ KARLO SEPARA JOHN AMTHONY JUNSAY JANELLE ARBOLEDA I. Background Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio. It has approximately $1.3 billion sales in 1991 and had grown $14.5 billion on 2006. They are offering lower prices and better service than its rival and that makes them one of the countries largest auto-insurer. II. Statement of the Problem * How will they maintain their position in the long-term trends in the market? Knowing that there is no stable in the market today and everything may change as time passes. * How will they innovate new more things to be able to satisfy their customer * How will they improve the services and poor performances of their employees III. Objectives * To maintain their position in the market. * To be able to meet the needs, wants and likes of the customers. * Continue to serve and innovate new things to become more successful * To satisfy their customers IV. Strength, Weaknesses, Opportunities and Threats Strengths The Company exercises efficiency and effectiveness to their operations by providing the following innovations: - They open a hot line that will bring them closer to their customer.1-800-AUTO-PRO, a cutting-edge auto insurance rate comparison shopping...
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...NBER WORKING PAPER SERIES HEALTH CARE FINANCING, EFFICIENCY, AND EQUITY Sherry A. Glied Working Paper 13881 http://www.nber.org/papers/w13881 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 March 2008 I thank Courtney Ward for research assistance and participants at the conference on Exploring Social Insurance, held in Toronto, November 2006. A version of this paper is forthcoming as a chapter in Exploring Social Insurance: Can a Dose of Europe Cure Canadian Health Care Finance? Edited by C. M. Flood, M. Stabile and C. Hughes Tuohy (Kingston, Montreal: Queen's School of Policy Studies, McGill-Queen's University Press). The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2008 by Sherry A. Glied. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Health Care Financing, Efficiency, and Equity Sherry A. Glied NBER Working Paper No. 13881 March 2008 JEL No. H42,H51,I18 ABSTRACT This paper examines the efficiency and equity implications of alternative health care system financing strategies. Using data across...
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...Associate Level Material Appendix E Insurance Matrix Type of Insurance Functions Example of Company Coverage Characteristics Auto The primary function of auto insurance is to make sure every driver on the road is financially responsible for their actions. In some states you may use other means to meet financially responsible guidelines, such as putting up a cash deposit with the Department of Motor Vehicles (DMV) or using a surety bond. With the small amount of cash needed auto insurance is the most common way to meet financial responsibility requirements to drive on the road. A clearer definition of the function of auto insurance can be viewed by looking at the regulations in place in the state you live. This is due to car insurance being regulated not at the federal level but at the state level. The ultimate function of insurance is to make the situation as right as possible. To restore things back to the way they were prior to the accident. If you were injured, you have to be healed. If your car got damaged, it would be repaired. If your car died on the road, towing insurance would be used to bring it to a repair shop. Your car is one of the most expensive things you own and insurance protects that investment. It provides you with a way of dealing with accident expense and trauma, theft and securing a loan on the car. Your car is a bold, heavy, machine which moves at fast speeds. As the owner, you have an obligation for the safety of passengers, other drivers, pedestrians...
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...List of Insurance Companies in Bangladesh LIST OF NON-LIFE INSURANCE COMPANIES Agrani Insurance Company Ltd. Asia Insurance Ltd. Asia Pacific Gen Insurance Co. Ltd. Bangladesh Co-operatives Ins. Ltd. Bangladesh General Insurance Co. Ltd. Bangladesh National Insurance Co.Ltd. Central Insurance Company Ltd. City Gen. Insurance Company Ltd. Continental Insurance Ltd. Crystal Insurance Company Ltd. Desh Gen. Insurance Company Ltd. Eastern Insurance Company Ltd. Eastland Insurance Company Ltd. Express Insurance Ltd. Federal Insurance Company Ltd. Global Insurance Ltd. Green Delta Insurance Co. Ltd. Islami Commercial Insurance Co. Ltd. Islami Insurance Bangladesh Ltd. Janata Insurance Company Ltd. Karnaphuli Insurance Company Ltd. Meghna Insurance Company Ltd. Mercantile Insurance Company Ltd. Nitol Insurance Company Ltd. Northern Gen.Insurance Company Ltd. Peoples Insurance Company Ltd. Phonix Insurance Company Ltd. Pioneer Insurance Company Ltd. Pragati Insurance Ltd. Pramount Insurance Company Ltd. Prime Insurance Company Ltd. Provati Insurance Company Ltd. Purabi Gen Insurance Company Ltd. Reliance Insurance Ltd. Republic Insurance Company Ltd. Rupali Insurance Company Ltd. Sonar Bangla Insurance Company Ltd. South Asia Insurance Company Ltd. Standard Insurance Ltd. Takaful Islami Insurance Ltd. Dhaka Insurance Ltd. Union Insurance Company Ltd. United Insurance Company Ltd. Sena Kalyan Insurance Company Ltd. Sikder Insurance Company...
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...[pic][1] Case Description If you‘ve ever been in a car accident, you know how it feels to wait for your claim payment to arrive. Insurance companies love to hold the money as long as possible to keep every penny of interest. Progressive Insurance is the notable exception to the industry rule: It tries to pay as quickly as it can – by getting claims adjusters out of the office and onto the street where they can interact with clients. The logic behind such a radical notion? Happier customers and more productive claims reps will more than make up for the lost interest revenue. At Progressive, that radical notion is enabled (in part) by IRV, which stands for “immediate response vehicle,” a fleet of SUVs loaded with enough communications gear – laptops, printers, and cell phones – to allow adjusters to settle claims right at the scene of the accident. That’s a big improvement over the scenario that still pervades the industry: Wait a week or two to see the car and make hand written notes, snap photos, drive back to the office, type it all into the mainframe computer, and issue a request for a check. Ten years ago, the IRV project involved just 10 adjusters in Florida. Today more than 11,000 mobile claims reps share a fleet of 2,600 IRVs. Not only did the program help improve customer retention by 20% last year; it has helped Progressive shave labor costs. Progressive’s mobile adjusters can handle nearly twice the workload they could a decade ago. IRVs have also helped...
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...Associate Level Material Appendix E Insurance Matrix |Type of Insurance |Functions |Example of Company |Coverage Characteristics | |Auto |Protects you from damages and financial expenses due |Progressive, Country Wide, Geico, Nationwide, Liberty |Auto insurance provides financial protection in the | | |to a motor vehicle accident. |Mutual, Travelers, Allstate |event of an auto collision. It covers physical damage,| | | | |vehicle damage and any liability than can arise | | | | |therefrom. | | | | |Auto insurance companies review your driving record, | | | | |how much you drive, where you live, who the insurer | | | ...
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...innovation from its competitors. * The best online ojek application : Online ojek compete among each other to make a simple, comfortable and good – featured application for their customers. As this happens, the online ojek owners need to make more creative and innovative application than the application which occurs now. The online ojek owners in this case need to make application with complete and unique features to make the consumers convenient, such as not only to order ojek, but also use for other services like delivering food and drink, ordering ticket, even until buying hand phone voucher or even token for electricity. This leads to high threat of entry as the ojek owner need to make more unique and more innovative application which many people like due to its easiness to access its complete feature. 2. Threat of substitutes Similar to the first one, the threat of substitute is also high. These are some reasons which gives evidence to this reason: * Public transport: Public transport, like Taxi, Trans Jogja, Angkot (Kobutri, Aspada, Kopata, etc.) substitute online ojek. Trans Jogja and Angkot uses cheap progressive payment (payment which is paid on one full journey with the same amount of money without adding it on every kilometers with very cheap price) while taxi uses Argo meter for its...
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...don't have to be as rare as they are. 84 HARVARD BUSINESS REVIEW Deep Change How *^ Operational Innovation Can Transform Your Company by Michael Hammer I N 199T, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, ioo-year-o!d industry that grows with GDP. Did it diversify into new businesses? No, Progressive's business was and is overwhelmingly concentrated in consumer auto insurance. Did it go global? Again, no. Progressive operates only in the United States. Neither did it grow through acquisitions or clever marketing schemes. For years. Progressive did little advertising, and some of its campaigns were notably unsuccessful. It didn't unveil a slew of new products. Nor did it grow at the expense of its margins, even when it set low prices. The proof is Progressive's combined ratio (expenses plus claims payouts, divided by premiums), the measure of APRIL 2004 85 How Operational Innovation Can Transform Your Company financial performance in the insurance industry. Most auto insurers have combined ratios that fluctuate around 102% - that is, they run a 2% loss on their underwriting activities and recover the loss with investment income...
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