most folks fail to realize that the web is avail to all folks not just limited to those living in MASS. it’s like they want their own little world. well, progressive apparently is check’d out ok, by the insurance commish. it amazes me that folks just don’t think. the one major problem i have w/the the progessive web, is that is tries (note TRY) to get rates for other companies. the problem with that is they don’t know how that other is actually rating a policy. i have seen on many occasions that the rate for the company i work for is far better in some cases than what the progressive said. sometimes i have seen it more. don’t rely on the web rate for other companies if not dealing directly with that particular insurance’s company website. personally, i think they will change their mind to 6 month policy once they see why many have that in other states. main reason: surching points. you’d have to wait til the next renewal, that could be 11 months since the violation or accident. same when it comes to remove the surcharge. otherwise, you might find a insured switching to get lower rate quicker! i know i would if it meant saving $$$.
Wake up Massachusetts Agents! You knew this day would come. It is time to compete for auto insurance in Mass. I fear that many agents will fold in Mass because they do not know the first thing about competing for auto business.
To the MAIA, rather than complain about the ‘outsiders’, how about joining them and providing superior pricing and service? Are you concerned that these companies are breaking the law or just that your constituents (the agents) will lose business and $$? If you are concerned about the latter, now’s the time to learn how to thrive in a competitive market. Those who hesitate is lost.
The issue here is not Progressive but people that want to prevent Mass residents from a free market economy! This is what USA is about. This can only improve the marketplace for insureds in the long run by derailing the good ole boys club.
Get off your butts, do your job, and stop whining about it.
Progressive is concerned with one thing and one thing only $$$$$$. They will grab a bunch of business and then raise rates. It works. Sure they will lose some back but a lot of people will just keep payihng the higher rates instead of mess with changing again. In MO they had dirt cheap rates about 6-10 years ago. For the last 6 years every time I run in to them I have a much better rate than Progresive. By the way, I sell Progressive. They get all of our non-standard business because they do not care about agents whatsoever and would throw us off the boat if they could. They are another company that is turning this product in to a commodity to the detriment of the consumer. If you go it alone you better make sure you understand all the coverages, exclusions, etc. Progressive, for instance, does not cover things other companies do. Their happy to take your money but do not turn it over so easy.
Progressive would prefer to not deal with agents. They sell those pesky coverages that result in benefits to their customers. Most folks buying insurance on the net, are like me choosing which rocket engine to take me to the moon.
I’ve also heard that even if you write a customer with Progressive, they will call them and try to write them at a lower premium. Has anyone had that happen to them?
I agree that Progressive’s attempts to quote other company premiums is a joke. With all the credit scoring that goes on in the industry, they can’t take the filed rates and expect them to be accurate. They don’t seem to care about that minor detail, and will continue to show that they are beating everyone else in the industry.
I’ve been writing Progressive policies through the agency for 9 years and have never heard of them contacting an Insured directly to counter-offer a lower rate! I have seen an Insured contact Progressive Direct and get a lower rate because they are acting as a direct writer in that circumstance, through an agency they have higher rates to accomodate our commissions. Fear not, you’ll find that Progressive is a great fit for your higher risk/non-standard clients. Those clients that you don’t want affecting your loss ratio’s with your bigger companies!
I would dare say that Progressive could probably BUY your bigger companies…in the IA market, they are about the 3d or 4th largest writer of provate passenger auto insurance – and they are gunning for the State Farm and Allstate coverages…as they are NOT just “non-standard” any more.
ok, I stand corrected… you may want to shelter the companies who give you a profit sharing allowance based on loss ratio.. if they even do that in Mass!
what you don’t realize is that your other companies (especially if they’re regional companies) will not be around in 10 years, since they don’t have a brand, the money to compete from a technology standpoint and their expense ratio is so high that they’ll never be able to compete in the market of the very near future. Thanks to Geico and others who’ve made PPA a commodity, this is what you’ll need in the future to survive. From an agency perspective if your not on board with Progressive, you should be. They have all that’s mentioned above and they provide avenues for agents to share these tools. The problem is so many agents are caught up in their 1980’s thinking that they can’t see the forest through the trees. They are so caught up in the B.S. (direct, stealing customers, not wanting to do business with agents, etc)that they’re actually missing the boat and they too will close up shop just like their “so special” regional carriers.
In Pennsylvania PGR DIRECT & GEICO are no competition to our agency as both those carriers are 25-30% higher in price. The flaw in their marketing plan is the fact that their advertising is seen in area’s us agents would not want to write business in. Let them have the cream of the crap!
None of the folks commenting on this issue (so far) are from Mass, so you don’t know the whole story. MA agents compete aggresively in every other line of business so we certainly know what competition is. All we want is to have everyone on an even playing field. Quoting policies without disclosing surcharge points is unfair to the unsuspecting consumer. The 6 month policy phenomenon hasn’t been allowed previously, but Progressive cut their deal with the commish on that too; last minute announcment without a heads up to other carriers until after they made their filings. The door swings bothways on 6 mo policies for consumers. Sure to generate more costs at the agency level- so what agent likes this? Progressive has chosen to break every rule our beloved comish established for this (UN)managed competition. They even get a free pass to not have to participate in the assigned risk loss assessment for a number of years…another sweet deal thanks to the Patrick administration. All other carriers in MA have to contribute to the assigned risk pool losses….Is that fair?
Agency man you could not be more wrong. Do you know how much Geico, Progressive, and other direct companies are spending on advertising? By the way, have you looked at the loss ratios of our so call “other companies” regional or otherwise vs Gieco and Progressive? If you did, you would note that their combined ratio is much better than Geico and Progressive. Geico and Progressive are simply replacing commission for advertising. Geico will spend more this year on advertising than any other company in the United States. Close to $1billion. You now how many agents you could have for that amount? I can assure you that even us fat cat agents do not account for that kind of cash. Without agents they have no other way of driving business to their company. Most of my companies spend no or very small amounts on advertising. They do not have to because I send clients to them every day. Geico and Progressive are not bad from a marketing standpoint but they also get as another guy put it “the cream of the crap” which makes them pay out more in claims. Here is a term for you…”Adverse Selection”. Look it up. That is what continues to happen to these companies. In the long run they are not really saving any $$ by not using agents and if they are the percentage is so small it is insignificant. Thay are adversely selected in the market place more than other companies. By the way, I sell Progressive and they are starting to see the importance of the IA. For instance, right now if you called me my agent rate is better than direct. They also are making great efforts to market to us agents. Also, Geico opened up a local agent office down the road from me. Now why would they pay an agent commission to sell their product? These companies are what will likely be in trouble 10 years from now. Not the companies I sell that have been around 100+ years. Sorry dude.
I clearly know what adverse selection is. What you don’t understand is that Progressive wrote the book on adverse selection to other companies. You name me a company that has better pricing segmentation and the data (with $13B of premium on the books)to support their pricing. What you don’t understand is the future of the auto insurance market. It is now a commodity. Read the Comscore study from last year and you’ll see that 56% of consumers started their quoting online, so a consumer brand matters a whole bunch. The regional companies don’t/can’t build a brand, nor can they provide the support to their agents (like progressive can and will)to have a web presence. The other problem is that GEICO runs a 16% expense ratio, which allows them to offer lower rates. Progressive runs a 19% on both agency and direct, while your regional companies are running a 30% ratio due to lack of economies of scale and overpaying on contingent commissions. They simply cannot compete long term in the market with that type of expense ratio. We’re in a soft market now, so it doesn’t show, but when it hardens and Progressive has an 11 pct point expense ratio benefit, that means your regionals have to price their product to a loss ratio that’s 11 pct points better than Progressive to deliver a similar CR. You tell me how they can compete in that market and who’ll be adversely selected against then!
On top of it all, they are the very lowest in glass repair reimbursement. Same is true for body damage. Not a great development for the citizens of MA.
On the other hand, they have free pet injury insurance, so fido will be fine.
Look,
Is Progressive gunning for business? You bet. This is GOOD for Mass. This will force other carriers who have gotten comfy cozy to adjust and compete. Progressive is not the evil empire. They are competitive and seem overly so sometimes. Insureds will benefit from it and thats what we should be about. Progressive will meet all the state requirements. So if you have a beef, its not with them but the state of Mass!
My experience has told me that Progressive is just as fallible as any other. How many of you sell their Homeowners insurance? There is a reason you don’t. They got eaten alive. I’ve watched the other direct marketers also. E-suregirl seems to be 25-30% higher than other companies…thats how they pay for that advertising. Funny that people want to pay for peace of mind with a cartoon instead of a real agent but hey. At least Progressive doesn’t have a cartoon dude running around acting stupid.
One thing I will say great about them are the claims people. They are FAST and nice.
I am a WINDSHIELD REPAIR buisness here in Mass I am glad to see that Progressive is advertising a deductable on Glass of $500.00 on a Windshield and the REPAIR are free??? I can only HOPE that the LOCAL INSURANCE COMPANYS follow suite?????Hey if you live in any of the States around MASS ie VT,RI,NH there is a deductable on GLASS of $100 to $500.00??? PETER_
most folks fail to realize that the web is avail to all folks not just limited to those living in MASS. it’s like they want their own little world. well, progressive apparently is check’d out ok, by the insurance commish. it amazes me that folks just don’t think. the one major problem i have w/the the progessive web, is that is tries (note TRY) to get rates for other companies. the problem with that is they don’t know how that other is actually rating a policy. i have seen on many occasions that the rate for the company i work for is far better in some cases than what the progressive said. sometimes i have seen it more. don’t rely on the web rate for other companies if not dealing directly with that particular insurance’s company website. personally, i think they will change their mind to 6 month policy once they see why many have that in other states. main reason: surching points. you’d have to wait til the next renewal, that could be 11 months since the violation or accident. same when it comes to remove the surcharge. otherwise, you might find a insured switching to get lower rate quicker! i know i would if it meant saving $$$.
Wake up Massachusetts Agents! You knew this day would come. It is time to compete for auto insurance in Mass. I fear that many agents will fold in Mass because they do not know the first thing about competing for auto business.
Welcome to the free market!
To the MAIA, rather than complain about the ‘outsiders’, how about joining them and providing superior pricing and service? Are you concerned that these companies are breaking the law or just that your constituents (the agents) will lose business and $$? If you are concerned about the latter, now’s the time to learn how to thrive in a competitive market. Those who hesitate is lost.
I second your comment!
The issue here is not Progressive but people that want to prevent Mass residents from a free market economy! This is what USA is about. This can only improve the marketplace for insureds in the long run by derailing the good ole boys club.
Get off your butts, do your job, and stop whining about it.
Progressive is concerned with one thing and one thing only $$$$$$. They will grab a bunch of business and then raise rates. It works. Sure they will lose some back but a lot of people will just keep payihng the higher rates instead of mess with changing again. In MO they had dirt cheap rates about 6-10 years ago. For the last 6 years every time I run in to them I have a much better rate than Progresive. By the way, I sell Progressive. They get all of our non-standard business because they do not care about agents whatsoever and would throw us off the boat if they could. They are another company that is turning this product in to a commodity to the detriment of the consumer. If you go it alone you better make sure you understand all the coverages, exclusions, etc. Progressive, for instance, does not cover things other companies do. Their happy to take your money but do not turn it over so easy.
Progressive would prefer to not deal with agents. They sell those pesky coverages that result in benefits to their customers. Most folks buying insurance on the net, are like me choosing which rocket engine to take me to the moon.
I’ve also heard that even if you write a customer with Progressive, they will call them and try to write them at a lower premium. Has anyone had that happen to them?
I agree that Progressive’s attempts to quote other company premiums is a joke. With all the credit scoring that goes on in the industry, they can’t take the filed rates and expect them to be accurate. They don’t seem to care about that minor detail, and will continue to show that they are beating everyone else in the industry.
I’ve been writing Progressive policies through the agency for 9 years and have never heard of them contacting an Insured directly to counter-offer a lower rate! I have seen an Insured contact Progressive Direct and get a lower rate because they are acting as a direct writer in that circumstance, through an agency they have higher rates to accomodate our commissions. Fear not, you’ll find that Progressive is a great fit for your higher risk/non-standard clients. Those clients that you don’t want affecting your loss ratio’s with your bigger companies!
“your BIGGER companies?”
I would dare say that Progressive could probably BUY your bigger companies…in the IA market, they are about the 3d or 4th largest writer of provate passenger auto insurance – and they are gunning for the State Farm and Allstate coverages…as they are NOT just “non-standard” any more.
ok, I stand corrected… you may want to shelter the companies who give you a profit sharing allowance based on loss ratio.. if they even do that in Mass!
what you don’t realize is that your other companies (especially if they’re regional companies) will not be around in 10 years, since they don’t have a brand, the money to compete from a technology standpoint and their expense ratio is so high that they’ll never be able to compete in the market of the very near future. Thanks to Geico and others who’ve made PPA a commodity, this is what you’ll need in the future to survive. From an agency perspective if your not on board with Progressive, you should be. They have all that’s mentioned above and they provide avenues for agents to share these tools. The problem is so many agents are caught up in their 1980’s thinking that they can’t see the forest through the trees. They are so caught up in the B.S. (direct, stealing customers, not wanting to do business with agents, etc)that they’re actually missing the boat and they too will close up shop just like their “so special” regional carriers.
In Pennsylvania PGR DIRECT & GEICO are no competition to our agency as both those carriers are 25-30% higher in price. The flaw in their marketing plan is the fact that their advertising is seen in area’s us agents would not want to write business in. Let them have the cream of the crap!
Mancini certainly doesn’t sound like a man… more like a whinny bee-och.
None of the folks commenting on this issue (so far) are from Mass, so you don’t know the whole story. MA agents compete aggresively in every other line of business so we certainly know what competition is. All we want is to have everyone on an even playing field. Quoting policies without disclosing surcharge points is unfair to the unsuspecting consumer. The 6 month policy phenomenon hasn’t been allowed previously, but Progressive cut their deal with the commish on that too; last minute announcment without a heads up to other carriers until after they made their filings. The door swings bothways on 6 mo policies for consumers. Sure to generate more costs at the agency level- so what agent likes this? Progressive has chosen to break every rule our beloved comish established for this (UN)managed competition. They even get a free pass to not have to participate in the assigned risk loss assessment for a number of years…another sweet deal thanks to the Patrick administration. All other carriers in MA have to contribute to the assigned risk pool losses….Is that fair?
Agency man you could not be more wrong. Do you know how much Geico, Progressive, and other direct companies are spending on advertising? By the way, have you looked at the loss ratios of our so call “other companies” regional or otherwise vs Gieco and Progressive? If you did, you would note that their combined ratio is much better than Geico and Progressive. Geico and Progressive are simply replacing commission for advertising. Geico will spend more this year on advertising than any other company in the United States. Close to $1billion. You now how many agents you could have for that amount? I can assure you that even us fat cat agents do not account for that kind of cash. Without agents they have no other way of driving business to their company. Most of my companies spend no or very small amounts on advertising. They do not have to because I send clients to them every day. Geico and Progressive are not bad from a marketing standpoint but they also get as another guy put it “the cream of the crap” which makes them pay out more in claims. Here is a term for you…”Adverse Selection”. Look it up. That is what continues to happen to these companies. In the long run they are not really saving any $$ by not using agents and if they are the percentage is so small it is insignificant. Thay are adversely selected in the market place more than other companies. By the way, I sell Progressive and they are starting to see the importance of the IA. For instance, right now if you called me my agent rate is better than direct. They also are making great efforts to market to us agents. Also, Geico opened up a local agent office down the road from me. Now why would they pay an agent commission to sell their product? These companies are what will likely be in trouble 10 years from now. Not the companies I sell that have been around 100+ years. Sorry dude.
I clearly know what adverse selection is. What you don’t understand is that Progressive wrote the book on adverse selection to other companies. You name me a company that has better pricing segmentation and the data (with $13B of premium on the books)to support their pricing. What you don’t understand is the future of the auto insurance market. It is now a commodity. Read the Comscore study from last year and you’ll see that 56% of consumers started their quoting online, so a consumer brand matters a whole bunch. The regional companies don’t/can’t build a brand, nor can they provide the support to their agents (like progressive can and will)to have a web presence. The other problem is that GEICO runs a 16% expense ratio, which allows them to offer lower rates. Progressive runs a 19% on both agency and direct, while your regional companies are running a 30% ratio due to lack of economies of scale and overpaying on contingent commissions. They simply cannot compete long term in the market with that type of expense ratio. We’re in a soft market now, so it doesn’t show, but when it hardens and Progressive has an 11 pct point expense ratio benefit, that means your regionals have to price their product to a loss ratio that’s 11 pct points better than Progressive to deliver a similar CR. You tell me how they can compete in that market and who’ll be adversely selected against then!
On top of it all, they are the very lowest in glass repair reimbursement. Same is true for body damage. Not a great development for the citizens of MA.
On the other hand, they have free pet injury insurance, so fido will be fine.
Look,
Is Progressive gunning for business? You bet. This is GOOD for Mass. This will force other carriers who have gotten comfy cozy to adjust and compete. Progressive is not the evil empire. They are competitive and seem overly so sometimes. Insureds will benefit from it and thats what we should be about. Progressive will meet all the state requirements. So if you have a beef, its not with them but the state of Mass!
My experience has told me that Progressive is just as fallible as any other. How many of you sell their Homeowners insurance? There is a reason you don’t. They got eaten alive. I’ve watched the other direct marketers also. E-suregirl seems to be 25-30% higher than other companies…thats how they pay for that advertising. Funny that people want to pay for peace of mind with a cartoon instead of a real agent but hey. At least Progressive doesn’t have a cartoon dude running around acting stupid.
One thing I will say great about them are the claims people. They are FAST and nice.
I am a WINDSHIELD REPAIR buisness here in Mass I am glad to see that Progressive is advertising a deductable on Glass of $500.00 on a Windshield and the REPAIR are free??? I can only HOPE that the LOCAL INSURANCE COMPANYS follow suite?????Hey if you live in any of the States around MASS ie VT,RI,NH there is a deductable on GLASS of $100 to $500.00??? PETER_