Professional Documents
Culture Documents
Progressive Pay As You Go Insurance
Progressive Pay As You Go Insurance
Pay-As-You-Go Insurance
Outline
• Progressive Company and History
• Innovations
• Autograph
• Future
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Progressive
Short Overview
• Auto insurer founded 1937
• was the first insurer
o to enter the high risk market
o offered high service for customer
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History
• 1988 Son of Lewis, became the CEO and got the
idea of dealing with insurance in a more innovative
way
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Reasons for
Differentiation
• Proposition 103 in California 1988
• always venturesome
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Information Transparency
• Customers: very price sensitive
• High costs for workforce
• Reducing workforce
• Increasing direct sales
• Comparison Quotes
• Website
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Customer Segmentation
• Different sources/variables into calculation
• More detailed risk estimation
• Extensive and state-of-the-art software
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Autograph
• High-tech method for calculating auto insurance
premiums on a pay-as-you-go basis.
When and
GPS Mapping Internal how much
satellites technology computer
a vehicle
was driven
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Progressive Customers
Premium Calculation
25%
Autograph
75% Traditional
• Lack of privacy
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Advantages
• market shares and global market
• company's reputation
• Customers increase
• first-mover advantage
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Disadvantages
• high costs and less reward
• Time duration
• liquidity issue
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Solution
• Do Not expand right away!!!
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Thank you!
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Images
• Alphamen (2012). Decision Making. Retrieved Nov 18, 2012 from
http://alpha-men.net/wp-content/uploads/2012/01/decision-
making.jpg
• Allen Kleine Deters (2011). Do You Ask Good Questions?.
Retrieved Nov 18, 2012 from
http://allenkleinedeters.wordpress.com/2011/11/28/do-you-ask-
good-questions/.
• PORHOMME (2008). Insurance companies want to track us by
GPS. Retrieved Nov 18, 2012 from
http://www.porhomme.com/2008/09/wtf-insurance-companies-
want-to-track-us-by-gps/.
• Progressive Insurance (2006). Progressive Headquarters Sign.
Retrieved Nov 18,2012 from
http://www.flickr.com/photos/progressive_insurance/4838281534/
in/photostream
• Progressive Insurance (2007). Progressive Immediate Response
Vehicle, Arriving in the Rain. Retrieved Nov 18, from
http://www.flickr.com/photos/progressive_insurance/4834844557/
in/photostream.
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