'Progressive Case Study\r'

' liberalist Case Study Progressive Auto Insurance political party is among many new(prenominal) competing firms in the industry. Some of the others include State Farm, Allstate, and GEICO. They atomic number 18 currently the third biggest private auto damages industry. From the time they came into existence they go strived for being the or so innovative company in the market and share the values of â€Å"fair, fast, best. ” Beginning in 1957 Progressive in the first place dealt with standard drivers but soon after they create a strategy that benefitted them greatly.For the next 25 days they started to focus on the nonstandard driver, who are the drivers that insurers would non cover. Particularly they segmented motorcyclists who had recently received a DUI. They priced the premiums high which solvinged in high profitability. They found let bring out that the motorcyclists were actually a lot lower insecurity than other companies originally perceived. outset in 1990, they started a practice of immediate response which reduced impairment for the person involved and likewise helped them in get an accurate quote for the damages.They also introduced the gold flier which reduced the time it took for people to respond to Progressive. In 1995, Progressive became the first insurance company to aggrandise its business to the world wide web establish writer website. The biggest innovative move they made was in 2000 when they introduced the concierge service which included full service overcompensate and customer service at their own shops. Starting in 2006 Progressive was enjoying high profitability overdue to unanticipated apoplexy frequencies.Thus many companies cut their prices to dungeon up with the competition. The problem with this is severe underwriting losses. They tried the maneuver of reducing prices below their competitors in hope to stool market share but this was the opposite result for them. The CEO Glenn Renwick recommende d 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 disfigurement 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 lag behind the leading competitors in the field. Although Progressive have been striving as an innovative insurance company they have been lacking behind a a couple of(prenominal) leading companies.It appears that they may need to narrow in on their strengths and cut out some of their programs to amaze sure they are ensuring high customer satisfaction. subsequently learning that there are many risks out there, people want to know that they go away be in good hands after a majo r disaster or incident. People will always rely on insurance companies because there numerous risks out there that people heart everyday. With these companies people feel at ease just about the everyday risks that they constantly endure.\r\n'