Progressive focuses on multi-line insurers

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With a large part of the attention of the housing / accident insurance sector focused on external threats from insurtechs and digital indigenous companies, the biggest disruption may be from within.

After the last decade of impressive growth, driven by direct-to-consumer providers, Progressive is selling wind in 2019 and shows no signs of slowing down. The company's recent Q3 profit showed an increase of 18 percent compared to the previous financial year (PIF) of 15 percent, and the total personal lines PIF with 11 percent YoY. Progressive & # 39; s commercial lines business turned in as impressive number.

Growth in both direct channels and in office channels has fueled this profit. The rise of Progressive in the broadcast channel was one of the highlights of the company. January marked the 38th consecutive month in which Progressive's agent channel PIF has achieved year-on-year increases, while its direct activities continue to deliver double-digit growth.

But that is not everything. In the soon to be published J.D. Power 2019 Independent Agent Study, ranked Progressive ranked second in terms of agent satisfaction and highest in total independent agent relationship volumes. The courier not only takes the largest share of the market for independent agents, but also manages to meet the expectations of these agents.

Over a period of 15 years, listed insurance companies followed the S & P 500 broadly, with the exception of Progressive (PRG) and GEICO (BERK). Progressive has accelerated its pace over the last two years. The top line of Progressive, which underlines the steady premium growth of the company and higher investment income, has risen considerably in recent years. As a result, the street has rewarded the stock price of 100% during the last two years prior to the recent market correction in the fourth quarter.

Stock Performance – Progressive vs. Peer Group – 2 years

Progressive shows no signs of resting on his laurels. Progressive has hit the headlines in the headlines and has introduced three new offers that are aimed directly at long-term multi-line insurance managers, such as State Farm and Allstate.

Progressive's new offering focuses on a market that is too low in relation to its digital expectations. The company has embraced a build it and they'll come capability that is designed to provide an enhanced digital experience that attracts and retains the lucrative multi-line insurance consumer.

Multi-line bundling

First, Progressive introduced a solution for citing multiple products, for consumers who want to quote and buy at home simultaneously and automatically. Although possible, the option to bundle at home and automatically bundle was not always clear. Customers usually had to enter information separately for each quotation. With the new functionality of Progressive, online quotes are bundled with pre-filled fields and received discounts are made clear everywhere. This integrated experience simplifies the process and makes bundling multiple products easier and faster. We expect this technology to spread rapidly throughout the industry.

Home Quote Explorer

Second, Progressive designed its HomeQuote Explorer, which was launched in the first quarter of 2017, to make buying and buying home owners' policies intuitive and easy. This includes pre-fill, which individualizes the online shopping experience of customers, as well as clear visuals and concise language to adjust the coverage options. By using the online auto-offer model of Progressive, customers are redirected to a tariff comparison tool at the time of purchase.

IA Portfolio Quoting

Third, Progressive has improved its desktop platform to enable customer portfolio quotation, allowing agents to quote and tie multiple products, including homeowners, special lines and cars. It makes the process easier for agents to bundle offers and view a customer at portfolio versus product level.

According to the above J.D. Power Independent Agent Study is the inability of insurers to offer bundled solutions an obstacle to the overall satisfaction of the agent. Carriers who can often offer bundled solutions to their customers generate a profit of 160 points (on a scale of 1,000 points) in the overall customer satisfaction with carriers that make the process unnecessarily difficult. Added value in terms of satisfaction translates into a larger number of customer referrals and increased brand involvement among agents.

With the combination of online bundling, improved tools for generating quotation requests and managing agent portfolio, Progressive confidently evolves in 2019 with opportunities designed to attract and retain the lucrative multi-line consumer market.

In what has become an intense struggle to win the highly valued multi-line consumer segment, Progressive has clearly made its presence known. The big question of 2019 is whether competitors can be as progressive as … Progressive.

About the author

Tom Super is director of the practice and accident insurance practice at J.D. Power. He can be reached at Thomas.super@jdpa.com

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