Progressive Case Study

liberalist Case Study Progressive Auto Insurance company is among many other competing firms in the industry. Some of the others include State Farm, Allstate, and GEICO. They ar currently the third biggest private auto insurance industry. From the time they came into existence they take aim strived for being the around innovative company in the market and shared the values of fair, fast, best. Beginning in 1957 Progressive in the main dealt with standard drivers but soon after they developed a strategy that benefitted them greatly.For the next 25 eld they started to focus on the nonstandard driver, who are the drivers that insurers would not cover. Particularly they segmented motorcyclists who had recently received a DUI. They priced the premiums high which resulted in high profitability. They found reveal that the motorcyclists were actually a lot lower risk than other companies originally perceived. offset in 1990, they started a practice of immediate response which reduc ed suffering for the person involved and also helped them in getting an accurate quote for the damages.They also introduced the gold billhook which reduced the time it took for people to respond to Progressive. In 1995, Progressive became the first insurance company to fatten out its business to the world wide web essay writer website. The biggest innovative move they made was in 2000 when they introduced the concierge service which included full service repair and customer service at their own shops. Starting in 2006 Progressive was enjoying high profitability due to unanticipated accident frequencies.Thus many companies cut their prices to go for up with the competition. The problem with this is severe underwriting losses. They tried the tactic of reducing prices below their competitors in hope to don market share but this was the opposite result for them. The CEO Glenn Renwick recommended slowly returning to the underwriting profits of 4% rather than the drastic price drops which could hurt them if the accident frequencies increased.JD power and Associates gave Progressive a sub tally score for overall customer satisfaction of 14. They also fared low on brand awareness rank in at 57% unaided brand 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 a few(prenominal) leading companies.It appears that they may need to narrow in on their strengths and cut out some of their programs to yield sure they are ensuring high customer satisfaction. After learning that there are many risks out there, people want to know that they will be in good hands after a major disaster or incident. People will always rely on insurance companies because there numerous risks out there th at people face everyday. With these companies people feel at ease nigh the everyday risks that they constantly endure.