Progressive Case Study

state-of-the-art Case Study modernized Auto Insurance company is among numerous other competing firms in the industry. Some of the others include State Farm, Allstate, and GEICO. They are soon the third biggest private auto indemnity industry. From the time they came into existence they discombobulate strived for being the most innovative company in the market and divided the values of fair, fast, best. Beginning in 1957 Progressive mainly dealt with standard drivers besides soon after they developed a strategy that benefitted them greatly.For the next 25 years they started to focus on the nonstandard driver, who are the drivers that insurers would not cover. curiously they segmented motorcyclists who had recently received a DUI. They priced the premiums richly which resulted in high profitability. They found out that the motorcyclists were actually a lot lower danger than other companies originally perceived. Starting in 1990, they started a practice of neighboring(a) r esponse which reduce trauma for the person involved and also helped them in getting an accurate quote for the damages.They also introduced the gold card which reduced the time it took for people to respond to Progressive. In 1995, Progressive became the first insurance company to expand its business to the world wide web assay writer website. The biggest innovative move they made was in 2000 when they introduced the concierge service which include full service repair and customer service at their have got shops. Starting in 2006 Progressive was enjoying high profitability due to out of the blue(predicate) accident frequencies.Thus many companies cut their prices to keep up with the competition. The problem with this is frightful underwriting losses. They tried the tactic of reducing prices below their competitors in hope to march on market share but this was the opposite result for them. The CEO Glenn Renwick recommended belatedly returning to the underwriting profits of 4% rather than the drastic price drops which could stand them if the accident frequencies increased.JD power and Associates gave Progressive a sub par label for overall customer satisfaction of 14. They also fared low on set awareness ranking in at 57% unaided mark awareness. Their competitors were at GEICO(79%), Allstate(69%), and State Farm(74%). Although they increased their advertising from 8 million in 1997 to 263 million in 2006, they were lagging behind the leading competitors in the field. Although Progressive have been striving as an innovative insurance company they have been lacking behind a few leading companies.It appears that they may indispensability to narrow in on their strengths and cut out some of their programs to shed light on sure they are ensuring high customer satisfaction. After learning that there are many risks out there, people want to know that they leave be in good hands after a major(ip) disaster or incident. People will always rely on insurance c ompanies because there numerous risks out there that people vitrine everyday. With these companies people feel at ease about the everyday risks that they forever and a day endure.