Joseph Lewis founded Progressive Insurance
Industry in Cleveland, Ohio.
Motive was “to delight the customer, maybe even
shock the consumer a little for competitive
advantage by delivering the unexpected”
the Insurance Industry
1956 - Progressive started to write auto insurance f or high risk
drivers and became dominant player
1969 – Motor Insurance Business
1971 – Went Public with headquarter to Mayfield Village, Ohio
Exhibit 1 Property Casualty – Product Line
Exhibit 3 Auto Insurance Distribution Channel
Exhibit 4 Market Share
Exhibit 10 Growth Rate of Progressive, Auto Insurance Industry and Property
A History of innovation
service at the
quotes as well
as its own.
agents to settle
many claims at
provider with a
The major innovation was progressive’s
implementation of fast service.
Progressive had rewired itself for round-the-clock
service and created new positions.
Advances in wireless technology and cell phones.
Seamless flow of information.
“Hire the best” and “Pay the most”.
1-800-AUTOPRO - Auto Insurance Rate Comparison Shopping
No longer would customers have to spend endless amounts of
time calling around to compare auto insurance rates.
One phone call to AUTO PRO would give customers a
Progressive quote and comparison rates for up to three
If the customer was satisfied with the Progressive quote; he
could buy the policy directly on the phone or locally through an
When and how
much a vehicle
Cost absorbed by Progressive were:
Cellular Communication System
Drivers who signed up for Autograph were offered:
Remote Door Unlocking
Emergency Assistance Help
Around 1100 policy holder voluntary took Autograph program and
found they are paying 25% less on premium than they paid using
• Increased efficiency
• Improved customer response
• More calls completed on the
• Improved payment cycle
• Up-selling and cross-selling
• First-mover advantage
• Higher premiums for
commute at night
• High cost
• Lack of privacy
• Focus on new
sight of the insurance
• DO NOT EXPAND RIGHT AWAY
• TIME FOR RESEARCH
• STAY IN TEXAS AND EXPAND SLOWLY
• FOCUS ON BIGGER CITIES ONLY
How potential roles of incremental and disruptive
innovation helps in creating and sustaining firm
Understand the strengths and limitations of current
technologies and apply them intelligently to meet
the needs of each application.
Develop the ability to assess and where necessary,
improve the process of innovation.
Integration of technology and innovation in a best
possible way to provide better and improved
services and satisfying the customers needs