Maybe Hogwash. I’m attending a meeting in 9/28/04. Their promiscuity doesn’t equate to Allstate who figured out that they couldn’t gain any further ground through their captive channel, and they knew that the internet required an excessive amount of marketing, hence a huge investment that may have ended up being a major loser.
the question that must be asked that isn’t discussed in the article is what is Progressive retention on their direct business? Their is an incentive to artificially suppress rates to keep marketshare, as these direct customers are price sensitive. One needs only to see the disparity in the Hartford’s AARp program to realize that that book is subsidized by the more stable retail agent book.
One must never forget that the Citicorp/Travelers merger was supposed to provide a cross-sell bonanza. The internet idea flopped along with the rest of the tech stock bubble. Travelers, after “investing” zillions on an internet-based direct channel like Progressive’s subsidized on the backs of retail agents, managed to sell a whopping 400 policies before walking away from it, and eventually Travelers Property Casualty as a whole.
Maybe Progressive has also seen the light? We’ll know on the 28th.
To answer Joe’s question about hating Progressive: They sell through schlock agencies who are SR22 mills, they compare Allstate, State Farm and Nationwide quotes, but don’t tell people that their own agents, the one’s that built the company can not only quote other companies, but write other companies. They try to poach your clients when they are called at the call center and brag to you that they retained your client when taking a late payment via the phone and are unsuccessful at poaching them; they pay below the market on commissions, don’t reward you for profitability, got a potsmokin’ ultra-liberal CEO that supports anti-American causes – need anymore?
I suspect Progressive is mimmicking AIG? They are losing to others that have been picking their pockets in the agency channel, such as SAFECO, METLIFE, ENCOMPASS and other agency writers that have multi-tier rating. One luxury Progressive’s direct channel lacks mechanically, is thay cannot re-write business. SAFECO pays 17% on new business and Progressive 8%? Sounds like a re-write incentive to me. Hold onto your book, Progressive, you’ve been getting your lunch eaten!
If Progressive was really looking out for agents, they would re-brand their direct business. We are the primary reason they are successful. It is time we call them to the carpet for the low commissions. I don’t know anyone who can keep their doors open for 8%.
Can’t believe that “Scott” ask the question: Why does Progressive envoke such animosity among independent agents”. He obviously is not trying to survive on 8% commission like most of us. Every other company in my office subsidizes Progressive. But, I will have to admit, they do provide a market.
Peter Ball, I bet Progressive is coming out like AIG to add “agent” as in Progressive Agent rather than just “Progressive”. AIG has “AIG Agency Auto” to differentiate us from their direct business to consumers. Maybe they believe they are losing too much business to their agents for not differentiating it with the public
Progressive has been putting the screws to agents for years. Not to mention being the number one competition to agents, Progressive set the trend for lower commissions. Progressive then introduced a program paying higher commissions if agents eliminated all their companies but two, thus eliminating “Progressive’s” competition. Then they pull that program and reduce commissions and promise bonuses for profitabilty. Then they reduce rates making it harder to make the bonuses. Progressive is the company we love to hate. Joe Insurance has it right, the guy running the show is a pot smoking liberal that is ruining the auto market.
Progressive is look out for Progressive, if the independents agent benefits that is good, Progressive drove the commission rate lower and lower- I will not write or renew a personal auto policy for less than 10%.- to do so will put you out of business.
It is a great country when a market can pay out fifty cents on the dollar on claims and get away with it!!! When the legality of their 3 tier commision structure was challenged, they blamed agents!!! As long as bucket shops persist in the insurance business Progressive will thrive. However, the rest of the industry has now adopted their model and is giving them a run for their money.
Progressive direct will take your clients when they try to call in a regular payment or renewal payment. We have lost alot of long time clients to this procedure. Progressive says that they do not practice this procedure when agents call. But it has happened to us numerous time.
Progressive also requires that the agent (IN FLORIDA) make ALL policy changes via the internet. No calls , no faxes, no mail in endorsements etc. Heaven forbid our internet is down in Florida due to three hurricanes – Progressive’s CSR’s tell us to “try again later”.
Progressive IS and has always been a fantastic company. They stand behind their agents. Ask a CSR who is there favorite company and you will hear Progressive. They make it easier to do business, no mis-quotes and when an endorsement is done on FAO, you know it is done correctly if you entered it correctly. Keep up the good work.
Remember the Barry Scott agencies in NY? BOUGHT by Progressive…>SOLD by Progressive…couldn’t make money from selling auto insurance and trying to live on meager commissions…..as DIRECT business, their CSR’s get paid SALARY with production incentives…
It’s so bad around here that the rep is coming around offering $50 per app to place the business with Progressive!
This is for Scott (9-21-04). My agency recently lost a client, that we quoted Progressive, to Progressive Direct. The rates Progressive Direct quoted him were at least 15% lower than our best Progressive quote. This is not the only time this has happened. I plan on asking a couple of questions myself at my October meeting. I hope this helps answer your question Scott.
I just came back from the meeting this morning. Progressive has done a study and determined that 67% of their written book is through IAs. After 10 years of attempting to erode the IA book, they have determined that they are not particularly looking to compete with GEICO, but to gain share from Allstate, State Farm, Farmers & Nationwide. They know they can’t do this direct. The problem is that their incessant advertising has branded in the minds of consumers, Progressive as a direct-responder.
They are rebranding the agent channel as “Drive”. They promise to spend loads promoting the IA channel to chip away at the captive share, which is more than 2/3rds of personal auto. No, they aren’t paying more.
I have to admit that it is about time an IA carrier stood up to the plate with personal lines. I was skeptical, but the more I consider it, I say “yes”! With the consolidation of agencies re-focusing the new, larger conglomerated cluster-F___ks to focus on commercial accounts, relegating personal lines to an in-house data entry clerk, this creates a huge opportunity to not only raid the captives, but those arrogant consolidated clusters of semi-retirees waiting for the final payment who employ entry-level salried employees to service personal insureds – why not just deal with GEICO?
Maybe some of the other dogs in the yard will catch a whiff of what Progressive is doing, and will begin to also support their sales force and put their money where their mouth is.Ias will eat the lunch of a captive square-peg-round-hole captive given a level playing field. Let the games begin!
PS. Progressive has also concluded that IA rate, which has been seperate from Direct for almost 2 years, is better 70% of the time. It is only the rate that has been jimmied toward a typical tight-wad monoline internet stalker that wins against the IA. As I said, they are cooling to these types because the retention is terrible.
If Big Insurance or any other Progressive agents would like to be interviewed about their reaction to the Drive proposal for a story in Insurance Journal, please send me an e-mail with your phone number and a good time to call. My deadline is tomorrow. Thanks.
You idiots! Progressive makes selling insurance so easy. They have raised the technology bar and forced the other companies to follow – which makes us all more efficient. Have any of you ever really audited your time in the office. Sure the commission is lower, but my CSRs can handle a policy in less than half the time of my other carriers. I make more money with Progressive than any other carrier (commission/time). Commission vs profit – think about it. As a former district manager for a captive carrier (now I own an IA) we never had meetings about Safeco, AIG or Auto Owners and the threats they pose. Progressive however was a threat to us, the captives. The one IA company that could take our clients with a better rate and then keep them with better service. If we, the IA’s, do not get on board with Progressive we will lose our shot at captive business. Ask your marketing rep. what the expense ratio is for the company he/she represents. I bet it is higher than Progressive and any captive out there. Would you rather have the old way of faxing endorsements and waiting three days for a response or do it all online. Think about it!!! Do you have more time to sell because of the changes Progressive has made.
Hogwash!
Why do so many independents dislike Progressive? What do they do that instills such animosity?
Its not make friends, its make money!
Maybe Hogwash. I’m attending a meeting in 9/28/04. Their promiscuity doesn’t equate to Allstate who figured out that they couldn’t gain any further ground through their captive channel, and they knew that the internet required an excessive amount of marketing, hence a huge investment that may have ended up being a major loser.
the question that must be asked that isn’t discussed in the article is what is Progressive retention on their direct business? Their is an incentive to artificially suppress rates to keep marketshare, as these direct customers are price sensitive. One needs only to see the disparity in the Hartford’s AARp program to realize that that book is subsidized by the more stable retail agent book.
One must never forget that the Citicorp/Travelers merger was supposed to provide a cross-sell bonanza. The internet idea flopped along with the rest of the tech stock bubble. Travelers, after “investing” zillions on an internet-based direct channel like Progressive’s subsidized on the backs of retail agents, managed to sell a whopping 400 policies before walking away from it, and eventually Travelers Property Casualty as a whole.
Maybe Progressive has also seen the light? We’ll know on the 28th.
To answer Joe’s question about hating Progressive: They sell through schlock agencies who are SR22 mills, they compare Allstate, State Farm and Nationwide quotes, but don’t tell people that their own agents, the one’s that built the company can not only quote other companies, but write other companies. They try to poach your clients when they are called at the call center and brag to you that they retained your client when taking a late payment via the phone and are unsuccessful at poaching them; they pay below the market on commissions, don’t reward you for profitability, got a potsmokin’ ultra-liberal CEO that supports anti-American causes – need anymore?
I suspect Progressive is mimmicking AIG? They are losing to others that have been picking their pockets in the agency channel, such as SAFECO, METLIFE, ENCOMPASS and other agency writers that have multi-tier rating. One luxury Progressive’s direct channel lacks mechanically, is thay cannot re-write business. SAFECO pays 17% on new business and Progressive 8%? Sounds like a re-write incentive to me. Hold onto your book, Progressive, you’ve been getting your lunch eaten!
If Progressive was really looking out for agents, they would re-brand their direct business. We are the primary reason they are successful. It is time we call them to the carpet for the low commissions. I don’t know anyone who can keep their doors open for 8%.
Can’t believe that “Scott” ask the question: Why does Progressive envoke such animosity among independent agents”. He obviously is not trying to survive on 8% commission like most of us. Every other company in my office subsidizes Progressive. But, I will have to admit, they do provide a market.
Peter Ball, I bet Progressive is coming out like AIG to add “agent” as in Progressive Agent rather than just “Progressive”. AIG has “AIG Agency Auto” to differentiate us from their direct business to consumers. Maybe they believe they are losing too much business to their agents for not differentiating it with the public
Progressive has been putting the screws to agents for years. Not to mention being the number one competition to agents, Progressive set the trend for lower commissions. Progressive then introduced a program paying higher commissions if agents eliminated all their companies but two, thus eliminating “Progressive’s” competition. Then they pull that program and reduce commissions and promise bonuses for profitabilty. Then they reduce rates making it harder to make the bonuses. Progressive is the company we love to hate. Joe Insurance has it right, the guy running the show is a pot smoking liberal that is ruining the auto market.
Progressive is look out for Progressive, if the independents agent benefits that is good, Progressive drove the commission rate lower and lower- I will not write or renew a personal auto policy for less than 10%.- to do so will put you out of business.
It is a great country when a market can pay out fifty cents on the dollar on claims and get away with it!!! When the legality of their 3 tier commision structure was challenged, they blamed agents!!! As long as bucket shops persist in the insurance business Progressive will thrive. However, the rest of the industry has now adopted their model and is giving them a run for their money.
Progressive direct will take your clients when they try to call in a regular payment or renewal payment. We have lost alot of long time clients to this procedure. Progressive says that they do not practice this procedure when agents call. But it has happened to us numerous time.
Anyone know what happened at the big meeting in Nevada…I think it was last night. They were going to announce something…
Progressive also requires that the agent (IN FLORIDA) make ALL policy changes via the internet. No calls , no faxes, no mail in endorsements etc. Heaven forbid our internet is down in Florida due to three hurricanes – Progressive’s CSR’s tell us to “try again later”.
Laura, check out this subsequent story:
http://www.insurancejournal.com/news/midwest/2004/09/23/46217.htm
Progressive IS and has always been a fantastic company. They stand behind their agents. Ask a CSR who is there favorite company and you will hear Progressive. They make it easier to do business, no mis-quotes and when an endorsement is done on FAO, you know it is done correctly if you entered it correctly. Keep up the good work.
Our Agency is a large growing agency in Manhattan NY who is looking for a good Auto Market.
Please advise if we can become a Progressive Agent.
Royal Associates Ltd
100 William Street
New York, NY 10038
212 349-3770 ext 204
Remember the Barry Scott agencies in NY? BOUGHT by Progressive…>SOLD by Progressive…couldn’t make money from selling auto insurance and trying to live on meager commissions…..as DIRECT business, their CSR’s get paid SALARY with production incentives…
It’s so bad around here that the rep is coming around offering $50 per app to place the business with Progressive!
This is for Scott (9-21-04). My agency recently lost a client, that we quoted Progressive, to Progressive Direct. The rates Progressive Direct quoted him were at least 15% lower than our best Progressive quote. This is not the only time this has happened. I plan on asking a couple of questions myself at my October meeting. I hope this helps answer your question Scott.
I just came back from the meeting this morning. Progressive has done a study and determined that 67% of their written book is through IAs. After 10 years of attempting to erode the IA book, they have determined that they are not particularly looking to compete with GEICO, but to gain share from Allstate, State Farm, Farmers & Nationwide. They know they can’t do this direct. The problem is that their incessant advertising has branded in the minds of consumers, Progressive as a direct-responder.
They are rebranding the agent channel as “Drive”. They promise to spend loads promoting the IA channel to chip away at the captive share, which is more than 2/3rds of personal auto. No, they aren’t paying more.
I have to admit that it is about time an IA carrier stood up to the plate with personal lines. I was skeptical, but the more I consider it, I say “yes”! With the consolidation of agencies re-focusing the new, larger conglomerated cluster-F___ks to focus on commercial accounts, relegating personal lines to an in-house data entry clerk, this creates a huge opportunity to not only raid the captives, but those arrogant consolidated clusters of semi-retirees waiting for the final payment who employ entry-level salried employees to service personal insureds – why not just deal with GEICO?
Maybe some of the other dogs in the yard will catch a whiff of what Progressive is doing, and will begin to also support their sales force and put their money where their mouth is.Ias will eat the lunch of a captive square-peg-round-hole captive given a level playing field. Let the games begin!
PS. Progressive has also concluded that IA rate, which has been seperate from Direct for almost 2 years, is better 70% of the time. It is only the rate that has been jimmied toward a typical tight-wad monoline internet stalker that wins against the IA. As I said, they are cooling to these types because the retention is terrible.
If Big Insurance or any other Progressive agents would like to be interviewed about their reaction to the Drive proposal for a story in Insurance Journal, please send me an e-mail with your phone number and a good time to call. My deadline is tomorrow. Thanks.
You idiots! Progressive makes selling insurance so easy. They have raised the technology bar and forced the other companies to follow – which makes us all more efficient. Have any of you ever really audited your time in the office. Sure the commission is lower, but my CSRs can handle a policy in less than half the time of my other carriers. I make more money with Progressive than any other carrier (commission/time). Commission vs profit – think about it. As a former district manager for a captive carrier (now I own an IA) we never had meetings about Safeco, AIG or Auto Owners and the threats they pose. Progressive however was a threat to us, the captives. The one IA company that could take our clients with a better rate and then keep them with better service. If we, the IA’s, do not get on board with Progressive we will lose our shot at captive business. Ask your marketing rep. what the expense ratio is for the company he/she represents. I bet it is higher than Progressive and any captive out there. Would you rather have the old way of faxing endorsements and waiting three days for a response or do it all online. Think about it!!! Do you have more time to sell because of the changes Progressive has made.
Thanks – Progressive fan.