The Progressive Corporation (NYSE: PGR), known as the 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 was co-founded in 1937 by Jack Green and Joe Lewis and is headquartered in Mayfield Village, Ohio.
Segments
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 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 2009, the company was ranked 209 in the Fortune 500.
Industry information
Progressive is one of the largest auto insurers in the United States, with over 10 million policies in force, 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's Agency business sells insurance through more than 30,000 independent insurance agencies and progressiveagent.com where customers can quote their own policies and then contact an agent to complete the sale.
In December 2009, Progressive announced it was selling car insurance in Australia. The online only product is called Progressive Direct.
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 policies through the phone and through its web site. In September 2007 Progressive began 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.
Immediate Response Vehicles (IRVs) used by Progressive are specially modified Ford Explorers and Ford Escapes.
Advertising
Progressive's television advertisements depict an insurance superstore with an overly enthusiastic cashier, Flo (Stephanie Courtney), who explains the benefits of Progressive Insurance.
In 2009, the company was accused of ordering their advertisements off the air during the show broadcast of Glenn Beck on the FOX News Channel over unsatisfactory comments made about U.S. President Barack Obama. Progressive stated that they never authorized their ads to be aired during the Beck's program, and they aired in that timeslot due to Fox's error.
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. (Mayfield Village, Ohio, where the company is based, is a suburb of Cleveland.)
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.
Controversies
In 2009, the company was sued for allegedly deceiving policyholders by employing illegally-operated, unlicensed body shops to make repairs on vehicles for their clients in order to save money. The class action lawsuit of Blue Ash Auto Body Inc. v. Progressive Insurance is pending in Ohio.
In 2007, the company apologized after it was revealed they hired private investigators to infiltrate a church group and pose as congregation members to collect information on litigants seeking redress from the company. Another lawsuit was filed by the litigants over the affair against the company for invasion of privacy and fraud.
In 2002, the company settled with the State of Georgia in a class action lawsuit over diminished value claims brought by policyholders.
Index memberships
S&P 500
S&P 1500 Super CompSee also
- List of United States insurance companies
References
- ^ Suzanne Rivard; Benoit Aubert, Michel Patry, Guy Paré, Heather Smith (2004). Information Technology and Organizational Transformation: Solving the Management Puzzle . Butterworth-Heinemann. pp. 142. ISBN 978-0750662024.
- ^ http://investors.progressive.com/pdf/mreport-0109.pdf
- ^ http://newsroom.progressive.com/2009/december/progressive-enters-australia.aspx
- ^ Jack W. Plunkett (2008). The Almanac of American Employers 2009: Market Research, Statistics & Trends Pertaining to the Leading Corporate Employers in America . Plunkett Research, Ltd. ISBN 978-1593921439.
- ^ Jack W. Plunkett (2005). Plunkett's Insurance Industry Almanac 2006: The Only Complete Reference To The Insurance And Risk Management Industry . Plunkett Research Ltd. ISBN 978-1593920388.
- ^ Garcia, Chris. "The Strange Allure of the Progressive Insurance Girl." Austin American-Statesman, 20 October 2008.
- ^ Inman, David. "TV Q&A with David Inman." Boston Herald, 14 December 2008.
- ^ "Advertisers dump Glenn Beck", Media Matters. August 6, 2009. Retrieved November 26, 2009.
- ^ "Progressive Statement Regarding Advertising on The Glenn Beck Show", Progressive Insurance, Aug. 24, 2009. Retrieved November 26, 2009.
- ^ Paul Hoynes (2008). "Cleveland Indians formally announce naming rights sold to Progressive Insurance". Cleveland Plain Dealer . http://blog.cleveland.com/sports/2008/01/cleveland_indians_formally_ann.html . Retrieved 2008-01-11 .
- ^ Alan Boyle (2007). "Auto X Prize Revs Up". MSNBC . http://cosmiclog.msnbc.msn.com/archive/2007/03/30/107615.aspx . Retrieved 2008-09-16 .
- ^ "Civil Conspiracy Added to List of Charges Against Progressive Insurance", Collision Week. September 4, 2009. Retrieved November 26, 2009.
- ^ "Progressive CEO sorry for spying on church goers", Reuters. August 23, 2007. Retrieved November 26, 2009.
- ^ "Progressive settles Georgia diminished value lawsuit", Insure.com. February 20, 2002. Retrieved November 26, 2009.
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