Posted On: December 29, 2008, 10:41 am CST

Posted By: CT Ins Agent

First, Prog was built by the IAs, and then tried to cut them out of the picture, first by cutting commissions from 15% to 8%, then by setting up their website and spending hundreds of millions advertising their direct channel with money derived from revenues generated by IAs. They also began selling and BOR-ing business over from IAs through their claims staff. That proved a failure, as many IA competitors copied their model, offered more commissions, and siphoned off a large chunk of IA Prog business.

Then Prog suddenly had an epiphany that the IAs had value, and came up with the "Drive" scheme. That confused the consumer and POed the IAs because it accomplished nothing, and Prog still paid a pittance.

What they should've been telling their competitors as that their IAs have multiple companies to quote you, and should someone else be a better fit than Prog, they can even place you without you having to hang up and call the quoted competitor. Prog advertises only captive and direct writer companies - State Farm, Farmers, Allstate, Liberty Mutual, Geico and Nationwide to name most - all of which give very little counsel and sell on price alone.

We have always used Prog as the garbage can for marginal insureds. Why put them with a favored carrier for only 8% with no profit sharing potential.

Question is why are they not selling through MA Ias?