...of Business and Governance Entrepreneurship Department Progressive Insurance: A Case Study Submitted to: Mr. Rey Navacilla Submitted by: John Paul Dela Vega Jose Antonio Kintanar Clarence Mitchell Sy Dayle Lois Tulang John Way Keith Medina Table of Contents I. Introduction…………………………………………………..…… II. Statement of the Problem…………………………………..…... III. Objectives of the Case Study………………………………..…. IV. Methodologies and Approaches…………………………….… V. Analysis of the Case a. Qualitative Tool: Fishbone Diagram………….…. b. Quantitative Tool: Decision Tree Analysis……. VI. Alternative Courses of Action (ACAs) c. Alternative Course 1……………………………..… d. Alternative Course 2……………………………….. e. Alternative Course 3……………………………..… VII. Significant Findings…………………………………………….. f. Positive Findings…………………………………… g. Negative Findings………………………………….. VIII. Recommendations…………………………………………….... IX. Conclusions……………………………………………………… I. Introduction Progressive Insurance, an automobile insurer company, which is based in Mayfield Village, Ohio. On the year of 1991 Progressive Insurance had approximately $1.3 Billion in their sales. When the year of 2006 came that $1.3 Billion in sales suddenly became $14.5 Billion. What did they do to make this figures increase so high? Nothing. For 15 years Progressive insurance just did little advertising, and some of its campaign was...
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...Assignment question: 1. What is Progressive’s business? a. Insurance Company b. Personal automobile insurance c. Property-casualty insurance d. Primary liability and physical damage insurance for automobiles and trucks owned by business primarily e. Professional liability insurance to community banks, directors, and officers f. Pet Injury coverage g. Usage-based insurance h. Insurance-related service 2. What is critical to the success of the business? a. High customer satisfaction, “Immediate response vehicle” b. Enough communications gear-laptops, printers, and cell phones c. Lower labor costs d. Mobile adjusters e. Wireless laptop (access to mainframe computer) f. Fax machines as printers to get hard copies g. Agents talk to clients often h. Auto shop i. Dispatchers monitor agents’ locations j. Digital cameras k. Collect information effectively l. Ink-jet printer to get copies of estimates, claims, and checks m. Effective and creative advertisement n. Snapshot o. New products and hardware p. Be able to offer discount 3. How does Progressive’s use of hardware contribute to these success factors Critical Success Factor | Type of Hardware | Contributions | * High customer satisfaction * Lower cost | IRV | * Pay as quick as it can * Improve customer retention * Increase revenue | * Agents talk to clients often...
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...Progr Progressive Insurance[1] If you‘ve ever been in a car accident, you know how it feels to wait for your claim payment to arrive. Insurance companies love to hold the money as long as possible to keep every penny of interest. Progressive Insurance is the notable exception to the industry rule: It tries to pay as quickly as it can – by getting claims adjusters out of the office and onto the street where they can interact with clients. The logic behind such a radical notion? Happier customers and more productive claims reps will more than make up for the lost interest revenue. At Progressive, that radical notion is based on IRV, which stands for “immediate response vehicle,” a fleet of SUVs loaded with enough communications gear – laptops, printers, and cell phones – to allow adjusters to settle claims right at the scene of the accident. That’s a big improvement over the scenario that still pervades the industry: Wait a week or two to see the car and make hand written notes, snap photos, drive back to the office, type it all into the mainframe computer, and issue a request for a check. Ten years ago, the IRV project involved just 10 adjusters in Florida. Today more than 11,000 mobile claims reps share a fleet of 2,600 IRVs. Not only did the program help improve customer retention by 20% last year; it has helped Progressive shave labor costs. Progressive’s mobile adjusters can handle nearly twice the workload they could a decade ago. IRVs have also helped revenues...
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...ADDITIONAL NOTE ON PROGRESSIVE CASE (TO BE CONSIDERED FOR CASE ANALYSIS) In March 2000 Progressive began to offer a new product: homeowners insurance. Made available first in an Arizona pilot, the program was extended to Michigan in October 2000, Maryland in January 2001, and Illinois in September 2001. Marketed initially through specially selected and trained independent insurance agents, Progressive’s homeowners policies were eventually to be\ offered, along with its primary product, auto insurance, through the company’s two direct channels, its 800-number and web site. Many consumers sought the convenience of bundling auto and homeowners insurance rather than dealing with separate companies for each policy. Some insurers even offered discounts to customers who consolidated their coverage. Progressive executives thus viewed homeowners insurance as a natural extension of the company’s auto-insurance product suite. In 1997 Progressive ran a trial partnership in Ohio with Travellers Casualty, a major player in homeowners insurance, whereby consumers were offered homeowners quotes when they called for auto insurance. By 2000, Progressive had decided to offer its own homeowners product. 2 The product was launched slowly in select states. The move into homeowners seemed an obvious choice for Progressive. The data-driven company had success in providing auto insurance rates that more accurately (and less expensively) reflected individual consumers’ coverage needs. Cross-selling to...
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...NBER WORKING PAPER SERIES HEALTH CARE FINANCING, EFFICIENCY, AND EQUITY Sherry A. Glied Working Paper 13881 http://www.nber.org/papers/w13881 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 March 2008 I thank Courtney Ward for research assistance and participants at the conference on Exploring Social Insurance, held in Toronto, November 2006. A version of this paper is forthcoming as a chapter in Exploring Social Insurance: Can a Dose of Europe Cure Canadian Health Care Finance? Edited by C. M. Flood, M. Stabile and C. Hughes Tuohy (Kingston, Montreal: Queen's School of Policy Studies, McGill-Queen's University Press). The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2008 by Sherry A. Glied. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Health Care Financing, Efficiency, and Equity Sherry A. Glied NBER Working Paper No. 13881 March 2008 JEL No. H42,H51,I18 ABSTRACT This paper examines the efficiency and equity implications of alternative health care system financing strategies. Using data across...
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...BUSINESS AND GOVERNANCE PROGRESSIVE INSURANCE CASE STUDY MGT. 428 MWF 12:25-1:25pm SUBMITTED BY: CHERRY MAY BIROG KENNETH MAGARIN KATHY MONTINOLA CHARLENE ELAINE LOPEZ KARLO SEPARA JOHN AMTHONY JUNSAY JANELLE ARBOLEDA I. Background Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio. It has approximately $1.3 billion sales in 1991 and had grown $14.5 billion on 2006. They are offering lower prices and better service than its rival and that makes them one of the countries largest auto-insurer. II. Statement of the Problem * How will they maintain their position in the long-term trends in the market? Knowing that there is no stable in the market today and everything may change as time passes. * How will they innovate new more things to be able to satisfy their customer * How will they improve the services and poor performances of their employees III. Objectives * To maintain their position in the market. * To be able to meet the needs, wants and likes of the customers. * Continue to serve and innovate new things to become more successful * To satisfy their customers IV. Strength, Weaknesses, Opportunities and Threats Strengths The Company exercises efficiency and effectiveness to their operations by providing the following innovations: - They open a hot line that will bring them closer to their customer.1-800-AUTO-PRO, a cutting-edge auto insurance rate comparison shopping...
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...The reform of the FIC from 1911 to 1915 was the epitome of ambivalence that the progressive labor reforms had. In order to improve the living conditions of underprivileged workers emerged with the Triangle Fire, the FIC gathered the public opinions of both the immigrant female workers who had strong working class consciousness and progressive reformers who sought a way to innovate industrial society, then converted them into actual reforms. As a consequence, it resulted in enacting a number of legislation to protect the physical and mental health of the working class, especially those of female and child workers who were in the most vulnerable positions. Nevertheless, the labor reform of the FIC should not be judged solely as the positive successes...
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...List of Insurance Companies in Bangladesh LIST OF NON-LIFE INSURANCE COMPANIES Agrani Insurance Company Ltd. Asia Insurance Ltd. Asia Pacific Gen Insurance Co. Ltd. Bangladesh Co-operatives Ins. Ltd. Bangladesh General Insurance Co. Ltd. Bangladesh National Insurance Co.Ltd. Central Insurance Company Ltd. City Gen. Insurance Company Ltd. Continental Insurance Ltd. Crystal Insurance Company Ltd. Desh Gen. Insurance Company Ltd. Eastern Insurance Company Ltd. Eastland Insurance Company Ltd. Express Insurance Ltd. Federal Insurance Company Ltd. Global Insurance Ltd. Green Delta Insurance Co. Ltd. Islami Commercial Insurance Co. Ltd. Islami Insurance Bangladesh Ltd. Janata Insurance Company Ltd. Karnaphuli Insurance Company Ltd. Meghna Insurance Company Ltd. Mercantile Insurance Company Ltd. Nitol Insurance Company Ltd. Northern Gen.Insurance Company Ltd. Peoples Insurance Company Ltd. Phonix Insurance Company Ltd. Pioneer Insurance Company Ltd. Pragati Insurance Ltd. Pramount Insurance Company Ltd. Prime Insurance Company Ltd. Provati Insurance Company Ltd. Purabi Gen Insurance Company Ltd. Reliance Insurance Ltd. Republic Insurance Company Ltd. Rupali Insurance Company Ltd. Sonar Bangla Insurance Company Ltd. South Asia Insurance Company Ltd. Standard Insurance Ltd. Takaful Islami Insurance Ltd. Dhaka Insurance Ltd. Union Insurance Company Ltd. United Insurance Company Ltd. Sena Kalyan Insurance Company Ltd. Sikder Insurance Company...
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...Case Study: The Brita Products Company CASE SUMMARY Situation Analysis: In 1988 Charlie Couric, a marketing executive at Clorox, oversaw the acquisition by Clorox of the right to market Brita Water Purifier Pitchers in United States, and then became the President and General Manager of Brita USA. He proposed a risky deficit-spending strategy to gain market with the goal of getting a Brita water pitcher on every kitchen countertop in the United States. As a result Brita USA incurred heavy losses upfront as initial sunk costs dwarfed any revenue from sales, and the company saw no profits in its first 4 years. Couric however, believed that in the long run the strategy would pay off as once Brita had achieved enough market share the company would make back its losses through repeat sales for pitcher filters. Time proved Charlie Couric right in that, for while the pitchers were developed at a high cost, the lower costing filters saved the consumer more money in the long run and became the main source of revenue for Brita. By 1999 Brita had sold 17 million pitchers and had close to 200 million in revenues per annum. Brita now enjoyed a 70 market share of home water purification industry. Problem: In 1999, Brita now faces a new competitor in the water purification industry, with a new product. PUR, the only competitor to Brita with double digit market share, announced that it would be spending $40 million in advertising and promotion to support the launch of...
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...GENETICS CASE STUDY GENETICS CASE STUDY This case study is based on a high-risk pregnancy due to advanced maternal age, genetic test indicating the fetus to have Tay-Sachs Disease and the coping strategies for this family. Rita Trosack is a 43-year old white female, married for six years to husband, Peter, a 46-year old white male. They both work in the financial district of Chicago and live downtown. They have been trying to conceive for two years. They both work an average of sixty hours a week. Rita and Peter were both raised as Catholics; however, they choose not to practice at this time. Rita missed her menstrual period, began having typical signs and symptoms of pregnancy (nausea, dry heaving, tender breasts, and fatigue). The fatigue was so severe she decreased her hours at the bank. An early pregnancy test performed by Rita tested positive. She then calculated her due date as January 27, 2009, since her last menstrual period (LMP) began on April 20, 2008. Rita met with Dr. Zimmerly an obstetrician in a high-risk obstetric clinic. On this first visit he confirmed the estimated date of delivery (EDD) as late January 2009. Due to Rita’s age, the chorionic villus sampling (CVS) was recommended to screen for fetal genetic defects. Rita had the test in early July, which would place her around eleven weeks into her pregnancy; this is the appropriate time in which to perform the CVS. Amniocentesis could have been performed, but this is usually...
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...movement and a political party that does not have leaders, but has spokespeople and an organizational structure that lasts more than few months. The candidacies and policies of real progressives like Sen. Bernie Sanders, Sen. Elizabeth Warren, Congresswoman Donna F. Edwards (Maryland) and Mayor Bill de Blasio and the 72 members of the Congressional Progressive Caucus could provide the best hope for permanent hybrid political...
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...Allstate Case Study Ryan Fluharty Midway College Dr. Ashe Allstate has made the bold decision to focus its efforts on the United States and Canada. This move shocked many people and argued whether or not it was a good strategic decision. With all of the turmoil that Allstate has faced over the last decade, the leadership of the company had to make a strategic move that they believed would push the business forward, not create any more flak. Focusing efforts on two areas of the world, especially ones that the company already had a good market power over made sense. This was a perfect strategic move. Positioning the company in a place where they are comfortable without any unforeseen or uncomfortable external macro environmental challenges could only leave room for growth, or better yet, time to breath. Allstate went through phases the last decade where they couldn’t decide whether or not they were an insurance company, bank or retail store. This confusion slowly, and then quickly, put Allstate behind their competitors. If you glance at State Farm, they have always been an insurance company. So in order for Allstate to compete more effectively with their competitors, it is time they decide what they want to be. If they want to be an insurance company, they need to be all in and create strategic plans to be the best at that one thing. The fault doesn’t fall completely in Allstate’s hands for the turmoil that they have faced over the past decade. The internet boom has...
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...CV - Pamela Sue Jenkins Pamela Sue Jenkins BSN, RN, CPEN Home Address Work Address 119 Fieldcrest Drive 1600 Rockland Road Cochranville, PA 19330 Wilmington, DE 19899 610-998-0615 302.651.4183 E-mail: pedrn1985@gmail.com pjenkins@nemours.org Academic Preparation 2012 – Present Master of Science - Leadership Wilmington University & Education Wilson Graduate Center 31 Reads Way New Castle, DE 19720 1985 Bachelor of Science – Nursing Lebanon Valley College 101 N. College Avenue Annville, PA 17003-1400 1982 – 1985 Diploma in Nursing Bryn Mawr School of Nursing 130 S. Bryn Mawr Avenue Bryn Mawr, PA 19010 1980 – 1982 Associates Degree – Nursing Lebanon Valley College 101 N. College Avenue Annville, PA 17003-1400 Licenses DE Registered Professional Nurse (multi-state) L1 – 0036388 PA Registered Professional Nurse...
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...hospitals claim that the expensive malpractice insurance that health professionals are required to carry is a contributing factor to the rise in the cost of health care. (Connolly, Ceci 2004). Awards capping is not a new principle for Americans. Much like we hear about salary caps for baseball teams some states including Ohio have legislated laws that put a limit on the amount that a patient can receive in a lawsuit for pain and suffering. The law now states that largest amount that a plaintiff can win is 250,000. Although the amount for lost wages will not be capped, states would like to place a value on a person’s quality of life. Medical malpractice awards capping is not a solution to the rising costs of healthcare. There are two sides to every story. The issue of awards capping is no different. On one side we have medical doctors, hospitals and a conservative government concerned about rising healthcare and insurance costs. On the other we have families, children and health care advocates who claim that a capping system would not be influential in affecting prices for health care or malpractice insurance. The ABA considers capping not only to be a bad idea, but ineffective as well “The American Bar association strongly refutes any such contention …empirical date nor experience with tort reform efforts within the states in the past have shown any established link between limiting non economic damages and affordability of malpractice insurance policies (Caps on Medical Malpractice...
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...The split of Insurance Products and Services in the Market Place E-1600 Economics of Business Professor R. Wayland Authors Steven Washburn Glenn Tam Derio Chan Anupam Raman Robert Rothschild Varun Malhotra Tiffany Hart December 9, 2014 Hypothesis On several levels, the Internet and related advances in technology have significantly affected financial services broadly, and insurance markets more specifically. When combined with globalization and regulatory reform, these advances have forced the insurance industry to become more competitive. We will discuss here specifically the split or disruption in the insurance business with a focus on the auto insurance product and less complex personal insurance products. These two products are on a trajectory to become fully commoditized with little or no agency interaction within 30 years. To the extent that the Internet reduces transaction costs, it also creates opportunities for new intermediaries as well as existing ones. It also has a natural influence on product design. For example - in some cases it is economically attractive to unbundle and repackage various forms of coverage. We will discuss this further in reference to driverless cars and bundling the insurance with the product later in the paper. This paper is organized in the following manner. First, we will briefly look at internet trends as the introduction. Next we will summarize the traditional insurance business, and the reduction of transaction...
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