Progressive case MIS.docx - Individual Case Analysis PROGRESSIVE Progressive acts as a differentiable entity in the insurance industry A true innovator

Progressive case MIS.docx - Individual Case Analysis...

This preview shows page 1 - 3 out of 8 pages.

Individual Case Analysis PROGRESSIVE Progressive acts as a differentiable entity in the insurance industry. A true innovator that goes through great lengths to optimize the stressful experience of acquiring car insurance, managing an insurance plan and offering driver security plans. It has been able to stand out due to its excellent quality service which has leveraged technology to adapt to the changing needs of its customers. By aligning its operational decisions with its company’s core values and goals it has been able to reinvent its value proposition. Progressive’s core values include; integrity, their golden rule (treating people the way they want to be treated), clear communication, excellence and profit. (See Appendix A ). The company has experienced significant growths in revenues of $8.2 Billion between 1991 and 2002, just 11 years (revenue of $1.3 billion and $9.5 billion respectively) ( Vkern, 2015 ). Progressive like other insurance providers makes its money by charging premiums on insurance coverages. Since that is the core product being offered, which it uses to fund its investments in other interest generating assets. However the company’s rapid functional process is miles ahead of its competitors. Since the company tackles cases head on by sending fully equipped vehicles to the location of each collision. The company’s primary focus is auto-insurance to personal lines but has since expanded. It now offers commercial line auto insurance to small business’s as well as property insurance, personal umbrella insurance and flood insurance ( Cleverism, 2018 ). It’s business model comprises of a “Pay as you drive” system (PAYD). This system is used by the company to know which price for coverage they will charge to each specific customer. The system tracks driving habits (tickets, experience, accidents) and car mileage. With a pay as you drive scheme, each customer won’t be charged based solely on their demographic labels (age, gender, driving record), but instead on your mileage ( Bordoff, 2008 ). With more mileage, more accidents occur, so by utilizing the “PAYD” scheme, Progressive is creating safer driving experiences and cheaper rates of insurance among its consumer base. This ties back their core value of integrity, which highlights their ethical appeal and corporate honesty. The model is also highly driven by consumer convenience, since customers can be reached whenever and wherever they are ( Vkern, 2015 ). Also its application for assessing driver risk profiles have been updated to include credit ratings,
Image of page 1
Progressive has been able to achieve such progress by the implementation of data management initiatives. As a result of these best practices, Progressive has been able to more deeply understand their customers needs (core value; golden rule) and customize their operational scheme to become more cost effective. As a result they have been able to charge a lower price and gain new customers who enjoy a higher quality service.
Image of page 2
Image of page 3

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture