Progressive Takes Aim at Multi-Line Insurers

By | January 25, 2019

  • January 25, 2019 at 8:36 am
    CL PM says:
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    For my 32 year career, while trying to compete against Progressive with IAs, they were known as the company agents “loved to hate.” Agents amused me by revealing all the horrible things PGR was doing to them while at the same time large amounts of new business was flowing their way. Do agents now really like them? Holy crap – not good for the rest of us.

    • January 25, 2019 at 9:53 am
      SWFL Agent says:
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      Good points PM. There’s no doubt that PGR put pressure on agents to adapt and change. First company to reduce commissions , first to mandate use of electronic submissions of documents, first to have dual channel distribution (and make it work), and I am sure there is more. It was a long term play that many agents could not envision and/or did not want to support or tolerate. I think it’s finally coming to fruition – for agents and stockholders. There are many ways to measure success but the one reality for me that demonstrates PGR’s success is the demise of industry mainstays like USF&G, Aetna, CNA, and other IA companies that were so dominant in personal lines. My guess – these companies heard from agents how bad Progressive is, just you like you did CL PM, and thought they’d wait out Progressive’s failure. Too late now.

    • January 25, 2019 at 2:45 pm
      rb says:
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      Love Progressive and have for 20 years. As lonestar said, they have increased commission and their quoting platform is second to none.

  • January 25, 2019 at 12:06 pm
    heard on the street says:
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    I’ve read that away from insurance they support liberal causes.

    • January 27, 2019 at 12:32 pm
      Tom Murin says:
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      That was the late Peter Lewis. He was a huge liberal, but a cut-throat businessman. Kind of an interesting mix. He believed in making money – and spending it how you wanted to. This is not the typical liberal way. He was a big pot smoker (you can google it). I left there almost 20 years ago, worked for a bunch of insurance carriers since – and none of them executed the business close to the way Progressive did. I didn’t realize how good they were until I worked elsewhere.

    • January 28, 2019 at 8:22 am
      FL Agent says:
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      They definitely do – rainbow Progressive tshirts for gay pride parades and drag queen bingo as fundraisers in my area… However, they do support more non-liberal causes – like Susan Komen for breast cancer & Southeastern Guide Dogs for providing guide dogs. One of those things I’m sure goes both ways.

  • January 25, 2019 at 12:14 pm
    knowall says:
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    Is insurance headed the way of the world – just the big will survive; or will these companies get too big for their britches?

    • January 29, 2019 at 9:31 am
      Mr. Solvent says:
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      Insurance has always run in cycles and will continue to. Big carriers get bigger and often too big, too fast. It triggers big rate increases and the regionals usually swoop in and gain market share in a hurry and it balances itself out until the next time.

  • January 25, 2019 at 1:29 pm
    lonestar says:
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    Well, Progressive actually raised commission levels for IAs that are able to write a certain level of business. When they offered this to me, along with an annual policy in Texas for the agent, my production tripled. And, I must say, their renewal rate adjustments are the most mild compared to everyone else taking knee jerk rate increases. So once I get the Progressive auto policy on the books, it is one of my most stable books. Now on the home product in Texas, that is a different story altogether. They bought one of the most beloved IA home carriers (ASI Lloyds) and basically made radical changes on deductible requirements and rate. Basically made the home product unsellable and uncompetitive. But the auto is great at the moment, from the IA perspective.

    • January 25, 2019 at 2:39 pm
      rb says:
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      You are able to write an annual auto policy in Texas?

      • January 25, 2019 at 4:57 pm
        Okieagent says:
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        We can write an annual policy here in Oklahoma, if they also purchase the home through ASI. ASI does seem to be a lot stricter on what types of risks they accept. We got a notice that a client had an exercise trampoline, the kind that are like 6 inches off the ground. They had to sign an exclusion and remove it from the premises. Maybe it was just that particular inspector who had the issue with it, I don’t know.

        • January 29, 2019 at 9:34 am
          Mr. Solvent says:
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          As a Florida agent I can tell you ASI is nasty to deal with. If something even remotely doesn’t fit in their little box it’s rejected. There’s no real underwriting going on there, only a manual that is followed to the letter. Hopefully Progressive’s ownership and expansion will change that as people in other states won’t put up with that level of contempt for the agent and the customer.

        • January 30, 2019 at 12:37 pm
          Christina says:
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          ASI will do that over any trampoline. I have had the same experience here in Georgia.

          • January 31, 2019 at 8:51 am
            Mr. Solvent says:
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            It’s not just trampolines. I have a laundry list of things that aren’t specifically ineligible that they just didn’t get a “good feeling” about.

      • January 25, 2019 at 5:38 pm
        lonestar says:
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        Yes, we are allowed to offer an annual, or 6 month policy. I understand that not all agents are allowed to do this, but we are.

  • January 25, 2019 at 3:41 pm
    agent14 says:
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    Progressive is making headway in the IA channel, and I can tell you one of the main reasons in my agency is they are now paying better commissions than Travelers. Travelers, who was for decades the IA channel darling carrier, turned their backs on the agents in 2014 when they reduced compensation. But now Progressive has done the opposite for agents with a certain type of business profile, increasing auto commissions to a higher level than Travelers. Is it no wonder that Progressive has now become one of the IA’s favorite “go to” auto carriers? Pretty simple! Higher comp, easier to work with? No brainer.

    • January 29, 2019 at 9:39 am
      Mr. Solvent says:
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      Commissions are only one part of the story. Progressive rarely gives us claims problems and the system is so easy a toddler can use it. Compare that experience to the Travelers and Safecos of the world. Both are fine companies, but can’t come close to the user experience of Progressive.

  • January 29, 2019 at 1:11 pm
    Isaiah Lehman says:
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    Does progressive own the home risk? I always thought there “bundling,” was underwritten through homesite?

    • January 30, 2019 at 9:57 am
      cl pm says:
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      Depends on the state. Progressive bought ASI, so wherever ASI is available, then Progressive “owns the home risk.” Otherwise, they offer policies through other carriers.

  • January 30, 2019 at 8:54 am
    lonestar says:
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    Isaiah, Progressive does offer a home policy for Texas through the call center, but it is not the same policy offered by agents. The Progressive call center home policy is on Ranchers and Farmers paper, it is a named peril policy with very limited coverage. The agent home policy is written on ASI Lloyds paper, and it is an open peril policy for dwelling, and is a broader policy. And, the rate is normally much better. And yes, the agent does own the policy when written through ASI. Again, this is how it is in Texas, may be different in other states.

  • August 1, 2019 at 5:16 pm
    hari says:
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    They just credit model better than anyone else and has gotten every state regulator to buy off on it. They are, right now, one of if not the only carrier, that can offer a rate to ANYONE. And have consumers willingly self select away from them if they are risk adjusted above their manual rate. WILLINGLY…..they can take the underwriting profit (they are one of only five non specialty only insurers that have an underwriting profit in market today) and plow it into higher commissions to IAs and can loosen underwriting restrictions because the consumer channel PRINTS them money. It’s amazing how just the intelligent leveraging of data and modeling can radically change your position in market.



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