SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mattyice who wrote (55334)5/22/2015 3:01:07 AM
From: Shane M  Read Replies (1) of 78744
 
MattyIce,

I used to work in insurance. Progressive was a strong competitor and innovative at the time I was following things. (I've been out of things for about three years)

Some things to consider imho:
- They had a habit of opening and closing and merging companies all the time which made me think they were playing games with regulators by shifting premium and losses around to generate their rates and rate indications. That might not have been what they were doing, but it really was kindof crazy behind the scenes when you looked at all their companies in various states.
- Their retention ratio was pretty low for the industry. Geico had a much better retention for a single line comparable. I'm not sure if this has improved, but it was an area where there was opportunity for them. This seemed like a huge possibility for gains in their business model as low retentions meant they had to churn business so much harder to grow. They'll probably never have retention like a top-notch multi-line carrier like State Farm, but there was quite a bit of a gap between Progressive and Geico at the time which seemed very reasonably achievable.
- I always felt like telematics had huge potential to upset the industry, and Progressive normally would be among the front-runners in those type things. I'm not sure where that stands, but they were out in front of things several years ago.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News