Progressive Corporation

Infobox_Company
company_name = Progressive
company_
company_type = Public (nyse|PGR)
company_slogan = It's about you. And it's about time.
foundation = 1937
location = Mayfield Village, Ohio
key_people = Glenn Renwick, CEO
Peter Lewis, Chairman of the Board (Non-Executive)
num_employees = 26,851 (2007)
industry = Vehicle Insurance
revenue = $14.7 Billion USD (2007)
homepage = [http://www.progressive.com/ www.progressive.com]

The Progressive Corporation (PGR), Progressive Casualty Insurance Company, through its subsidiaries, provides personal automobile insurance, and other specialty property-casualty insurance and related services in the United States. The company operates in three segments: Personal Lines, Commercial Auto, and Other-indemnity. The Personal Lines segment writes insurance for private passenger automobiles, motorcycles, boats, and recreational vehicles through both an independent agency channel and a direct channel. The Commercial Auto segment writes primary liability and physical damage insurance for automobiles and trucks owned by small businesses primarily through the independent agency channel. The Other-indemnity segment provides professional liability insurance to community banks, principally directors, and officers liability insurance. It also provides insurance-related services, primarily providing policy issuance and claims adjusting services in 25 states for Commercial Auto Insurance Procedures/Plans. In 2008, the company was ranked 175 in the Fortune 500.

The company was co-founded in 1937 by Jack Green and Joe Lewis and is headquartered in Mayfield Village, Ohio. [ [http://finance.yahoo.com/q/pr?s=PGR PGR: Profile for PROGRESSIVE CP - Yahoo! Finance ] ]

Industry information

Progressive is one of the largest auto insurers in the United States, in terms of active policies, along with State Farm, Allstate, GEICO, Farmers Insurance Group, and USAA. Progressive primarily offers its services through the Internet or by phone and through independent insurance agents. Progressive is available through 1-800-PROGRESSIVE and [http://www.progressive.com the Progressive Web site] . Progressive's Agency business sells insurance through more than 30,000 independent insurance agencies and [http://www.progressiveagent.com progressiveagent.com] where customers can quote their own policies and then contact an agent to complete the sale.

Marketing and operations

Progressive's marketing campaign is known for offering quotes of its competitors along with its own quote. It was the first major insurer to offer auto polices through the phone and through its Web site. It was also the first major insurer to offer Pet Injury coverage, which provides coverage for dogs and cats that are injured in a crash and is included at no additional cost with Collision coverage. [cite news |title="Finally!" says Fido. "A car insurance company that gets it"|url=http://newsroom.progressive.com/2007/September/pet-injury-coverage.aspx]

Immediate Response Vehicles (IRVs) used by Progressive are specially modified Ford Explorers and Ford Escapes. [cite news |title=The Check Is in the Car... |publisher=CNN Money |date=July 1, 2003 |author=Null, Christopher |url=http://money.cnn.com/magazines/business2/business2_archive/2003/07/01/345272/index.htm] Every major metropolitan area has a claim office while remote areas are serviced by field adjusters.

Basis of premium charges

Itemized insurance quotes can be viewed on the company website and insurance policies can be purchased online as well. The website allows the buyer to compare various coverage selections such as "minimum coverage," "economy coverage," "recommended coverage," "plus coverage," and a user defined "custom coverage." Insurance premiums quoted by the company take into account factors such as vehicle make and model, age and gender of driver and location. Violations and accidents found on the drivers history also may affect the premium charged. Progressive looks back 35 - 36 months depending on the state (39 months in New York) to determine eligible accidents and violations.

Concierge Level of Claims Service

Progressive will work with local body shops and car dealerships to repair an insured's vehicle, or a vehicle damaged by an insured, at one of its more than 50 service centers. This is a free service for any Progressive insured or claimant who lives close enough to one of the facilities. A damaged vehicle can be taken to the service center - the day following a claim being reported for an insured or after liability has been accepted for a claimant - based on schedule availability and convenience of the vehicle owner. There a rental vehicle can be obtained and Progressive will handle the entire repair process from that point forward. [ [http://claims.progressive.com/concierge_service.aspx Progressive's Concierge Level of Claims Service ] ]

Usage-Based Insurance

MyRate is a usage-based car insurance program developed developed by Progressive in the United States. [ [http://newsroom.progressive.com/2008/June/myrate-launch.aspx One-of-a-Kind Car Insurance Program Lets Drivers Save Big Bucks Based on How They Drive] ] [ [http://auto.progressive.com/progressive-car-insurance/myrate-default.aspx MyRate Web site] ] It is a voluntary, behavior-based insurance program that gives drivers a customized insurance rate based on how, how much, and when their car is driven. MyRate is currently available in Alabama, Kentucky, Louisiana, Michigan, Minnesota, Maryland, New Jersey and Oregon.

Driving data is transmitted to the company using an on-board telematic device. The device connects to a car's OnBoard Diagnostic (OBD-II) port (all automobiles built after 1996 have an OBD-II.) and transmits speed, time of day and number of miles the car is driven. There is no GPS in the MyRate device, so no location information is collected. Cars that are driven less often, in less risky ways and at less risky times of day can receive large discounts. Progressive has received patents on its methods and systems of implementing usage-based insurance and has licensed these methods and systems to other companies. Progressive has service marks pending on the terms Pay As You Drive and Pay How You Drive.

Corporate sponsorship

In January 2008, Jacobs Field in Cleveland, Ohio, home of the Cleveland Indians, was renamed Progressive Field. Progressive signed a 16-year contract for the naming rights, as well as sponsorship rights to become the Official Auto Insurer of the Cleveland Indians. The agreement costs around $3.6 million per year cite web|url=http://blog.cleveland.com/sports/2008/01/cleveland_indians_formally_ann.html|title=Cleveland Indians formally announce naming rights sold to Progressive Insurance|accessdate=2008-01-11|publisher=Cleveland Plain Dealer|author=Paul Hoynes] .

In March 2008, Progressive announced its title sponsorship of the Progressive Insurance Automotive X PRIZE and their funding of the $10 million prize purse. The Progressive Automotive X PRIZE is an international competition designed to inspire a new generation of viable, super fuel-efficient vehicles. The competition is open to teams from around the world that can design, build and bring to market 100 MPGe (miles per gallon energy equivalent) vehicles cite web|url=http://progressiveautoxprize.org|title=Progressive Insurance Automotive X PRIZE] .

Index memberships

S&P 500
S&P 1500 Super Comp

References

External links

* [http://www.progressive.com/ Progressive web site]
* [http://biz.yahoo.com/ic/11/11213.html Yahoo! - The Progressive Corporation Company Profile]