Progressive should be correct with their quoting. If they are not, shame on them. The complaining by the Mass. agents is because they finally have competition. Sure is hard to compete now that everyone does not have the SAME PRICE!
Would you like some more “whine” with your cheese?
Did you not read thie article? Especially the part where it says…”The letter follows an admission by Progressive that its Web site was mistakenly doubling the rates of several competitors”?
That’s not competition that’s misleading the consumer.
“Progressive should be correct with their quoting. If they are not, shame on them.”
Stating “IF” they are not correct as if there is some question when in fact they admitted twice that they were not correct in their quoting.
“The complaining by the Mass. agents is because they finally have competition. Sure is hard to compete now that everyone does not have the SAME PRICE!”
Again, it is not fair competition when one of the giants advertises on national television how you can compare their quotes to other insurers and then drastically overinflate the competitive rates.
“Would you like some more “whine” with your cheese?” – to me it sounds like the Mass. agents have a very valid point and are not “whining” but are asking for obviously needed correction to the unfair practices of Progressive. Once Progressive proves their rating comparisons are accurate then there will be true competition.
Another thing I’ve seen online comparisons do is quote all the available discounts in their premium and then comparing the rate to the non-discounted rate of the competition which is also wrong.
If a competitor setup shop next door to you and then made untrue claims about your business would you be “whining” if you tried to set the record straight? I think not.
Your points are all valid but there is no way that it is as one sided as it seems.
“Another thing I’ve seen online comparisons do is quote all the available discounts in their premium and then comparing the rate to the non-discounted rate of the competition which is also wrong.”
It almost sounds to me like you are suggesting that Mass begin to regulate the quoting process also…the playing field has never, and will never, be as even as it was in Mass.
The rest of the country has been dealing with this for years.
Please enjoy your holidays and thank you for a civil debate. You may have the last word if you desire.
I agree with Ha!. Progressive’s marketing creates a false impression that they are comparing apples to apples and when the consumer later has a claim, they find out that their low rates were the result of higher deductibles, lower limits, shorter policy periods (6 months vs 1 year)..and as mentioned the application of credits. Insurance does not have to be complex but the consumer should know some basics before they go online to shop so that they can get a clear picture of their position in the market. I think Progressive does a disservice when I see the commercial where a lady wants “lots of coverage” and “roadside assistance” instead of calling the coverages with the actual terms; by using everyday language to market what is a complex legal contract, consumers a lead to believe that it really is “simple”; maybe that’s what Progressive wants but I had to show my kid how he gave up coverage for price, without knowing it until he had a glass claim and wasn’t covered.
I’ll just add that I’m not in Mass. Actually never visited there even.
I simply think that if online insurers are going to offer comparison quotes then they should be held accountable for accuracy or not do it at all and let their rate (and service) stand on its own merit.
Insurance doesn’t have to be complex, the proliferation of progressive and gecko’s half truths and hokus pokus just confuses clients and makes it real hard for honest caring ethical agents to actually do their job of client education and disclosure. They make up their mind before an agent can even analyze their needs.
In our state when progressive started their operations we went through very similar situations but after all was said and done they have become a good market for us. JUst keep on them and they will come around.
1) first of all, if you ever had a web site comparison from progressive, it can never be an apples to apples. remember that progressive does not know how each company underwrites a policy or it’s rates based on underwriting. it does not matter from which state it is in. if you look, most of the time on tv, it favors progressive showing. why should it not, afterall it’s there commercial. they would not want to show otherwise.
2) is it mass law that it can only be written in 12 mos? most companies write a 6-month policy that renews. over the course of a year, folks can have accidents or incidents that can change the rate. when that year policy is up and rate changes, many folks will balk! that incident could have happened 10-11 months before. then they find out, that it will stay with them for 3 yrs from that renewal if you stay with that company. this was why many companies went to 6-months. otherwise, many folks would change insurances directly after that 3 yrs of the incident.
*** remember that when some of these commercials or even websites, there are some fine lines or words that most folks don’t hear or want to read. like the disclaimers for deals on cars – how many times are they in fine print that you can’t read it w/o a microscope or said so fast that you don’t understand what he’s saying? many times those diclaimers if read to be understood, they might take up more time than the commercial itself.
Ok, don’t you guys know how Progressive works? They cherry picking who they want to insure. When the info comes in and it meets their criteria for a good risk they make their premium less, when it’s an undesirable risk/location whatever — they make the other companies premium lower so the less desirable business goes to the other guys. That is how they be write lower premiums.
Having a past working in the insurance industry, would just like to add a few comments.
It is in the best interest of insurance agents to want to get rid of any competition, so they are going to look for any reason to shut down progressive or any other company that (eventually) enters the market. However, shutting down there business is only bad for consumers who now have more choice.
Agents want to criticise progressive for not giving proper consultation or for changing limits/deductibles without explanation.
However, anyone shopping online can choose whatever they want. Some people know exactly what coverage they want by comparing to their current dec page. The internet is more convenient for these people. Plus, if there are any questions, they can always call their customer support line to get guidance by a licensed agent (most online sellers like progressive, geico, & esurances are open 24 hours—not the case for independent agents).
12 month policies is a law? That doesn’t make much sense. Nobody is tied to there contract until the expiration date anyway. Anyone can leave their current company ANY time they want and switch carriers. Plus, if I am waiting for a violation to fall off my record, I am better off with a 6 month policy as my violation record can be re-looked at every new term (in this case 6 months sooner).
Just keep in mind that more options are always better for shoppers, and the more companies entering the market, the better it is for the consumer. Obviously another insurance company or an independent agent doesn’t want a new direct carrier to enter the market, as it is competition.
So, consider the bias to their allegations and why they want progressive to get shut down. It is in their best interest and not yours.
Flattened_Lizard – I don’t think anyone would dispute that competition is good; as long as it is fair competition. Although I’m sure some agents would love to see Progressive go away I’m also sure they know that isn’t going to happen and they are not asking for Progressive to be completely shut-down only that if they are going to offer premium comparisons that they do so in a truthful, accurate manner. We also know that accomplishing that is almost impossible given the myriad of rating factors each company uses.
As far as a consumer sitting down with their current dec page and comparing coverage and also knowing what all the numbers mean that is a bit of a stretch in my experience. I cannot count how many times a customer comes in and A. doesn’t know what a Dec page is and/or B. when asked what their coverage limits are they respond “I have full coverage” and that is the extent of their knowledge of their auto insurance coverage.
The typical online consumer today has zero knowledge of insurance coverage, what the limits mean and what it means to them if they have a loss. Why? Because they are trained by advertising campaigns to look only at price when shopping for virtually any product on the market today. Price is everything to today’s consumer and unfortunately when it comes to insurance products it is not always the lowest premium that is the best option for the insured.
The way I see it is that it was a human error, and had nothing to do with the complexity of getting competitor’s rates. All rates are public record and are filed with the state department of insurance. You could just as easily get all your competitors rates.
The only thing that is unclear are underwriting guidelines (the criteria that insurance groups use to determine what company to write you in under their group name). That is why Progressive wont give you an exact rate for competitors, but a range of rates (ie.. $550 – $665).
So they were giving the wrong competitor rates by human programming error. They have removed that enhancement until they are 100% sure they are correct. They have already notified 20-some thousand people that have quoted, that there was a mistake. If there are any statutes warranting a fine, then they will get a fine. Not sure what else they can do.
I also don’t think you are giving the average person enough credit. People should be given a choice on how to shop. I think most people know what a dec page is. It is important for everyone to shop apples-to-apples. And if at any time a customer is confused they can just call Progressive and pick up where they left off and get any questions answered.
Also, doesn’t progressive also sell insurance through independent agents? Or is MA the only state where they don’t? If so, why is that? I am guessing it has something to do with the crazy atmosphere for doing (any) business in MA.
well, it’s funny how you think how people think or know certain things. let me give you an interesting example. for one, since i work for an insurance company you would think my kids would have a better understanding of what coverages are or even ask me. well, my son had an accident and was insured by a different company than i worked for. he thought that when he asked to be fully covered he was totally covered. what he did not realize, is that the damaged caused to his own vehicle (he was at-fault), he’d have to pay some out of his pocket (deductible). he was furious! he said, “DAD! how can this be? they told me when i purchased the insurance that it was totally covered.” i then asked him the standard questions a dad would ask w/the hint of insurance agent. i tried to explain him what his coverages meant. he sounded so typical of those folks that we talk to everyday. we really don’t discuss coverages like we should. we think everyone understand the lingo, when in reality they are looking at us w/confused puppy dog eyes. since my son’s accident, i have tried to remember that w/each and every customer. tell them in the language they understand. my son finally realized that i knew what i was talking about. the unfortunate thing, he lost the battle of paying out! he understands now. i just hope that he remembers.
To you Mass Agents who are complaining about Progressive remember the following:
1. Eventually Progressive will sell through the Independent Channel and if your appointed it will bring customers in the door.
2. There Technology is GREAT to work with and Ease of doing business is 2nd to none.
3. The commission isn’t great at 10/10 but their Commercial Auto program is pretty good. If they paid a 15/15 they would really be Progressive, and if they tell you it is because there customer service & technology they pay 10/10 well there tech side has already been paid for in other states.
4. If Geico comes in Massachusetts then you will have no chances of selling Geico products.
5. The last hard market they remained open when others closed or tightened up so you can still sell. Just watch their payment plans if they dont offer them in certain zipcodes. It hurt us in NY this year.
6. Other carriers say how wonderful they are but in reality they have you jump through Hula Hoops to put a policy on the books.
I hope this helps you stop whining because things could get alot worse if a Geico Gecko makes it way into the Baystate.
….Life isn’t fair? I want these Mass agents to come work in an agency in Texas and then they’ll really appreciate the status quo, unfair quoting and all, in Mass.
Progressive took down the comparisons and sent out letters of apology to everyone involved. Mistakes happen and they fixed them. They’re new to the market and it’s almost impossible to enter a new market that size without some glitches.
So, calm down, and work on explaining the differences to your customers instead of wanting to try to get the government involved in everything.
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?
And now there is yet another connection. Your kids hate you. What have you done to these kids to get to the point where they know what you do for a living, but rather than actually talking to you about it, they would rather strike out on their own.
You both have really dysfunctional relationships with your kids.
It seems Progressive as many of you know have several distribution channels. It appears that they want to take their on-line product and have comparison to other companies like Independent Agents. They are not Independent Agents yet they want the consumer in my opinion to think they are taking on that role through comparison shopping.
Good agents spend hours every year studying statutes and coverages to better assist their customers. How many hours do you think a Customer Service Representative sitting in a call cneter spends to better educate their selves so they can better serve their customers?
If there is a claim who are they going to call? Every time a customer calls they get someone different. Chances are there is no relationship between the consumer and the call center person. The average person probably doesn’t remember who they talked to last.
Who is going to be the customer’s advocate when there is a mistake by the company or a questionable claim? Someone who gets their check from the insurance company or an independent agent?
In my opinion if Progressive says they are going to give rates of competitors they have an obligation to be sure they are 100% accurate or suffer the consequences of fines and/or a class action suit. Which if they are not accurate I am sure will come.
I would say to Progressive Insurance you are not an Independent Agent, so please quit trying to fool the public into thinking you are.
I enjoy your posts and now I see we have something in common; I had the same experience with my son, who just so happens got his policy from Progressive and did it on line. He too found that he did not have the “full coverage” he wanted; in fact, he didn’t know he had a deductible at all, let alone $500 for collision. I had the same sit down talk with him about it and wondered aloud, why, if he knew I work for a carrier, that he didn’t ask for guidance. I would have put him in touch with my local agent, especially now that he is married and insures two cars. But people live and learn, and like I told him and his sister, “CAVEAT EMPTOR”; they need to recognize their limits of understanding and put a little time into things like insurance, and banking, and family planning and child rearing..etc. etc. etc. Happy New Year to all on IJ!
I am not as offended as you might think but I thank you for pointing out that Ralph’s comment had nothing to do with this discussion. Let’s see if I can recap: I favor IA, and dislike direct writers who have commoditized insurance to the confusion of the consumer. Next, my son is like my brother, my neighbor and some of my co-workers; it is nothing unusual for some people to NOT ask for any assistance when confronted with something they know nothing about. My son’s biggest complaint growing up was that he would insist he could do this or that, himself, without any help and continues to do so into his adult life. This is to the consternation of his wife; some people are just that way. I am amazed by your comment and wonder what world you live in?
now that was not fair! because i think i don’t live in the same area as stat guy…now we both have posted things over the year, but just because we have one thing in common, does not mean we are the same! i bet we could find something the same w/everyone. it might take time!…
I used to work for Progressive and during our national sales meetings they projected in the next couple of year double digt growth for their direct business and between 1-2% growth for their Agency distribution channel. The direction of this company is too increase their market share via direct and taking stagnant business away from other direct writers. They assume that IA’s will place business through them because of their technology, ease of doing business, and ability to write garbage business. The fact is that they could give a rats *** about agents.
The channel has proven to attract a different, perhaps more educated, consumer with better loss characteristics. This feature takes on added importance in a state such as MA that so heavily restricts allowable rating factors used in virtually every other state.
Im sorry wuddy, I like you but, you are spending just too much time on here. Im sorry it didnt work out and I wish you luck in the future, but Im forced to let you go.
Who’d a thunk it? Inaccurate price comparisons from an online insurance source? Oh the humanity!
I wonder how many other states Progressive has made “mistakes” in?
Progressive should be correct with their quoting. If they are not, shame on them. The complaining by the Mass. agents is because they finally have competition. Sure is hard to compete now that everyone does not have the SAME PRICE!
Would you like some more “whine” with your cheese?
Did you not read thie article? Especially the part where it says…”The letter follows an admission by Progressive that its Web site was mistakenly doubling the rates of several competitors”?
That’s not competition that’s misleading the consumer.
I did read it and said shame on Progressive. Did you not read my response correctly?
Yes, I read your response correctly.
You said –
“Progressive should be correct with their quoting. If they are not, shame on them.”
Stating “IF” they are not correct as if there is some question when in fact they admitted twice that they were not correct in their quoting.
“The complaining by the Mass. agents is because they finally have competition. Sure is hard to compete now that everyone does not have the SAME PRICE!”
Again, it is not fair competition when one of the giants advertises on national television how you can compare their quotes to other insurers and then drastically overinflate the competitive rates.
“Would you like some more “whine” with your cheese?” – to me it sounds like the Mass. agents have a very valid point and are not “whining” but are asking for obviously needed correction to the unfair practices of Progressive. Once Progressive proves their rating comparisons are accurate then there will be true competition.
Another thing I’ve seen online comparisons do is quote all the available discounts in their premium and then comparing the rate to the non-discounted rate of the competition which is also wrong.
If a competitor setup shop next door to you and then made untrue claims about your business would you be “whining” if you tried to set the record straight? I think not.
Your points are all valid but there is no way that it is as one sided as it seems.
“Another thing I’ve seen online comparisons do is quote all the available discounts in their premium and then comparing the rate to the non-discounted rate of the competition which is also wrong.”
It almost sounds to me like you are suggesting that Mass begin to regulate the quoting process also…the playing field has never, and will never, be as even as it was in Mass.
The rest of the country has been dealing with this for years.
Please enjoy your holidays and thank you for a civil debate. You may have the last word if you desire.
I agree with Ha!. Progressive’s marketing creates a false impression that they are comparing apples to apples and when the consumer later has a claim, they find out that their low rates were the result of higher deductibles, lower limits, shorter policy periods (6 months vs 1 year)..and as mentioned the application of credits. Insurance does not have to be complex but the consumer should know some basics before they go online to shop so that they can get a clear picture of their position in the market. I think Progressive does a disservice when I see the commercial where a lady wants “lots of coverage” and “roadside assistance” instead of calling the coverages with the actual terms; by using everyday language to market what is a complex legal contract, consumers a lead to believe that it really is “simple”; maybe that’s what Progressive wants but I had to show my kid how he gave up coverage for price, without knowing it until he had a glass claim and wasn’t covered.
I’ll just add that I’m not in Mass. Actually never visited there even.
I simply think that if online insurers are going to offer comparison quotes then they should be held accountable for accuracy or not do it at all and let their rate (and service) stand on its own merit.
Have a Merry Christmas!
Zeus, you are an arrogant jerk. But I’m sure you’ve been told that before.
Must be a Mass agent.
I see that you don’t like someone else having the last word unless you bestow that power upon them.
Your rude and uncivil.
At least spell correctly. It should have read ‘you’re rude and uncivil’.
Insurance doesn’t have to be complex, the proliferation of progressive and gecko’s half truths and hokus pokus just confuses clients and makes it real hard for honest caring ethical agents to actually do their job of client education and disclosure. They make up their mind before an agent can even analyze their needs.
In our state when progressive started their operations we went through very similar situations but after all was said and done they have become a good market for us. JUst keep on them and they will come around.
what do u mean by gecko’s half truths?
1) first of all, if you ever had a web site comparison from progressive, it can never be an apples to apples. remember that progressive does not know how each company underwrites a policy or it’s rates based on underwriting. it does not matter from which state it is in. if you look, most of the time on tv, it favors progressive showing. why should it not, afterall it’s there commercial. they would not want to show otherwise.
2) is it mass law that it can only be written in 12 mos? most companies write a 6-month policy that renews. over the course of a year, folks can have accidents or incidents that can change the rate. when that year policy is up and rate changes, many folks will balk! that incident could have happened 10-11 months before. then they find out, that it will stay with them for 3 yrs from that renewal if you stay with that company. this was why many companies went to 6-months. otherwise, many folks would change insurances directly after that 3 yrs of the incident.
*** remember that when some of these commercials or even websites, there are some fine lines or words that most folks don’t hear or want to read. like the disclaimers for deals on cars – how many times are they in fine print that you can’t read it w/o a microscope or said so fast that you don’t understand what he’s saying? many times those diclaimers if read to be understood, they might take up more time than the commercial itself.
WOW, I’m shocked ! Premium not correct from their web slight ?
Ok, don’t you guys know how Progressive works? They cherry picking who they want to insure. When the info comes in and it meets their criteria for a good risk they make their premium less, when it’s an undesirable risk/location whatever — they make the other companies premium lower so the less desirable business goes to the other guys. That is how they be write lower premiums.
Having a past working in the insurance industry, would just like to add a few comments.
It is in the best interest of insurance agents to want to get rid of any competition, so they are going to look for any reason to shut down progressive or any other company that (eventually) enters the market. However, shutting down there business is only bad for consumers who now have more choice.
Agents want to criticise progressive for not giving proper consultation or for changing limits/deductibles without explanation.
However, anyone shopping online can choose whatever they want. Some people know exactly what coverage they want by comparing to their current dec page. The internet is more convenient for these people. Plus, if there are any questions, they can always call their customer support line to get guidance by a licensed agent (most online sellers like progressive, geico, & esurances are open 24 hours—not the case for independent agents).
12 month policies is a law? That doesn’t make much sense. Nobody is tied to there contract until the expiration date anyway. Anyone can leave their current company ANY time they want and switch carriers. Plus, if I am waiting for a violation to fall off my record, I am better off with a 6 month policy as my violation record can be re-looked at every new term (in this case 6 months sooner).
Just keep in mind that more options are always better for shoppers, and the more companies entering the market, the better it is for the consumer. Obviously another insurance company or an independent agent doesn’t want a new direct carrier to enter the market, as it is competition.
So, consider the bias to their allegations and why they want progressive to get shut down. It is in their best interest and not yours.
Flattened_Lizard – I don’t think anyone would dispute that competition is good; as long as it is fair competition. Although I’m sure some agents would love to see Progressive go away I’m also sure they know that isn’t going to happen and they are not asking for Progressive to be completely shut-down only that if they are going to offer premium comparisons that they do so in a truthful, accurate manner. We also know that accomplishing that is almost impossible given the myriad of rating factors each company uses.
As far as a consumer sitting down with their current dec page and comparing coverage and also knowing what all the numbers mean that is a bit of a stretch in my experience. I cannot count how many times a customer comes in and A. doesn’t know what a Dec page is and/or B. when asked what their coverage limits are they respond “I have full coverage” and that is the extent of their knowledge of their auto insurance coverage.
The typical online consumer today has zero knowledge of insurance coverage, what the limits mean and what it means to them if they have a loss. Why? Because they are trained by advertising campaigns to look only at price when shopping for virtually any product on the market today. Price is everything to today’s consumer and unfortunately when it comes to insurance products it is not always the lowest premium that is the best option for the insured.
Happy Birthday, Jesus Christ!,
The way I see it is that it was a human error, and had nothing to do with the complexity of getting competitor’s rates. All rates are public record and are filed with the state department of insurance. You could just as easily get all your competitors rates.
The only thing that is unclear are underwriting guidelines (the criteria that insurance groups use to determine what company to write you in under their group name). That is why Progressive wont give you an exact rate for competitors, but a range of rates (ie.. $550 – $665).
So they were giving the wrong competitor rates by human programming error. They have removed that enhancement until they are 100% sure they are correct. They have already notified 20-some thousand people that have quoted, that there was a mistake. If there are any statutes warranting a fine, then they will get a fine. Not sure what else they can do.
I also don’t think you are giving the average person enough credit. People should be given a choice on how to shop. I think most people know what a dec page is. It is important for everyone to shop apples-to-apples. And if at any time a customer is confused they can just call Progressive and pick up where they left off and get any questions answered.
Also, doesn’t progressive also sell insurance through independent agents? Or is MA the only state where they don’t? If so, why is that? I am guessing it has something to do with the crazy atmosphere for doing (any) business in MA.
well, it’s funny how you think how people think or know certain things. let me give you an interesting example. for one, since i work for an insurance company you would think my kids would have a better understanding of what coverages are or even ask me. well, my son had an accident and was insured by a different company than i worked for. he thought that when he asked to be fully covered he was totally covered. what he did not realize, is that the damaged caused to his own vehicle (he was at-fault), he’d have to pay some out of his pocket (deductible). he was furious! he said, “DAD! how can this be? they told me when i purchased the insurance that it was totally covered.” i then asked him the standard questions a dad would ask w/the hint of insurance agent. i tried to explain him what his coverages meant. he sounded so typical of those folks that we talk to everyday. we really don’t discuss coverages like we should. we think everyone understand the lingo, when in reality they are looking at us w/confused puppy dog eyes. since my son’s accident, i have tried to remember that w/each and every customer. tell them in the language they understand. my son finally realized that i knew what i was talking about. the unfortunate thing, he lost the battle of paying out! he understands now. i just hope that he remembers.
To you Mass Agents who are complaining about Progressive remember the following:
1. Eventually Progressive will sell through the Independent Channel and if your appointed it will bring customers in the door.
2. There Technology is GREAT to work with and Ease of doing business is 2nd to none.
3. The commission isn’t great at 10/10 but their Commercial Auto program is pretty good. If they paid a 15/15 they would really be Progressive, and if they tell you it is because there customer service & technology they pay 10/10 well there tech side has already been paid for in other states.
4. If Geico comes in Massachusetts then you will have no chances of selling Geico products.
5. The last hard market they remained open when others closed or tightened up so you can still sell. Just watch their payment plans if they dont offer them in certain zipcodes. It hurt us in NY this year.
6. Other carriers say how wonderful they are but in reality they have you jump through Hula Hoops to put a policy on the books.
I hope this helps you stop whining because things could get alot worse if a Geico Gecko makes it way into the Baystate.
….Life isn’t fair? I want these Mass agents to come work in an agency in Texas and then they’ll really appreciate the status quo, unfair quoting and all, in Mass.
Progressive took down the comparisons and sent out letters of apology to everyone involved. Mistakes happen and they fixed them. They’re new to the market and it’s almost impossible to enter a new market that size without some glitches.
So, calm down, and work on explaining the differences to your customers instead of wanting to try to get the government involved in everything.
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?
I always thought you guys had a lot in common.
And now there is yet another connection. Your kids hate you. What have you done to these kids to get to the point where they know what you do for a living, but rather than actually talking to you about it, they would rather strike out on their own.
You both have really dysfunctional relationships with your kids.
Or maybe they are just stupid?
that was below the belt.
It seems Progressive as many of you know have several distribution channels. It appears that they want to take their on-line product and have comparison to other companies like Independent Agents. They are not Independent Agents yet they want the consumer in my opinion to think they are taking on that role through comparison shopping.
Good agents spend hours every year studying statutes and coverages to better assist their customers. How many hours do you think a Customer Service Representative sitting in a call cneter spends to better educate their selves so they can better serve their customers?
If there is a claim who are they going to call? Every time a customer calls they get someone different. Chances are there is no relationship between the consumer and the call center person. The average person probably doesn’t remember who they talked to last.
Who is going to be the customer’s advocate when there is a mistake by the company or a questionable claim? Someone who gets their check from the insurance company or an independent agent?
In my opinion if Progressive says they are going to give rates of competitors they have an obligation to be sure they are 100% accurate or suffer the consequences of fines and/or a class action suit. Which if they are not accurate I am sure will come.
I would say to Progressive Insurance you are not an Independent Agent, so please quit trying to fool the public into thinking you are.
I enjoy your posts and now I see we have something in common; I had the same experience with my son, who just so happens got his policy from Progressive and did it on line. He too found that he did not have the “full coverage” he wanted; in fact, he didn’t know he had a deductible at all, let alone $500 for collision. I had the same sit down talk with him about it and wondered aloud, why, if he knew I work for a carrier, that he didn’t ask for guidance. I would have put him in touch with my local agent, especially now that he is married and insures two cars. But people live and learn, and like I told him and his sister, “CAVEAT EMPTOR”; they need to recognize their limits of understanding and put a little time into things like insurance, and banking, and family planning and child rearing..etc. etc. etc. Happy New Year to all on IJ!
I am not as offended as you might think but I thank you for pointing out that Ralph’s comment had nothing to do with this discussion. Let’s see if I can recap: I favor IA, and dislike direct writers who have commoditized insurance to the confusion of the consumer. Next, my son is like my brother, my neighbor and some of my co-workers; it is nothing unusual for some people to NOT ask for any assistance when confronted with something they know nothing about. My son’s biggest complaint growing up was that he would insist he could do this or that, himself, without any help and continues to do so into his adult life. This is to the consternation of his wife; some people are just that way. I am amazed by your comment and wonder what world you live in?
Ralph,
I’ve watched these posts over the years and I believe Wudchuck and Stat Guy are the same person. Very dysfunctional.
now that was not fair! because i think i don’t live in the same area as stat guy…now we both have posted things over the year, but just because we have one thing in common, does not mean we are the same! i bet we could find something the same w/everyone. it might take time!…
i hope everyone has a wonderful new year!
I used to work for Progressive and during our national sales meetings they projected in the next couple of year double digt growth for their direct business and between 1-2% growth for their Agency distribution channel. The direction of this company is too increase their market share via direct and taking stagnant business away from other direct writers. They assume that IA’s will place business through them because of their technology, ease of doing business, and ability to write garbage business. The fact is that they could give a rats *** about agents.
For the record, we may think alike but we are not the same person. I work for a mid-size carrier in the Mid-Atlantic, not sure where wudchuck lives.
The channel has proven to attract a different, perhaps more educated, consumer with better loss characteristics. This feature takes on added importance in a state such as MA that so heavily restricts allowable rating factors used in virtually every other state.
well, i work on the east coast. VA, USA for a major insurance company.
Used to work for a major company……
Im sorry wuddy, I like you but, you are spending just too much time on here. Im sorry it didnt work out and I wish you luck in the future, but Im forced to let you go.
I can tell you for a fact this was a human error, and the human involved is no longer with the company.