Progressive Insurance and Service Oriented
Architecture

Car insurance customers are looking to Progressive Insurance and service oriented architecture for high quality customer service at reasonable rates. The insurance industry views Progressive Insurance as a model for other insurance companies of how a company can successfully be built with a focus on customer service.

Customer Profile

Progressive Insurance has been selling reasonably-priced car insurance since 1937. They started by offering car insurance policies through independent insurance brokers. These brokers sold a variety of car insurance policies from various insurance companies. The initial policies were designed to provide insurance to consumers who were considered high-risk because of their driving record.

The company has grown significantly since 1937 and now offers a wide variety of car insurance policies to all consumers. The policies are now offered online, over the phone and continue to be offered through independent agents.

Service Goals

Progressive established their service goals based on the results of a customer survey which showed that car insurance customers want:

• A reasonable rate
• To buy from a company that is financially stable and well-known
• High quality service including fast policy issuance and quick and fair claim adjustment

Progressive Insurance has a strong orientation towards meeting their customers' needs through quality service and technology. They have established service goals to use technology in innovative ways to improve the business practices in all aspects of car insurance from policy shopping, policy application, claim filing and policy management. They don't want to just move the paper faster. They want to eliminate the slow processes and any excess paperwork adding to the total time required to apply for insurance or settle a claim.

The Successes of Progressive Insurance and Service Oriented Architecture

Many service businesses, including the insurance industry, are looking at ways to redesign the way they do business. They want to be more customer-focused and to build the basis, or "architecture", of their business practices around providing exceptional service to their customers.

This service-orientation is particularly important in the insurance industry where most products are very similar in design. Each car insurance company generally provides the same types and ranges of coverage. The primary way for an insurance company to be competitive is in the rates they charge and the customer service they provide.

Progressive Insurance has been very successful in finding new, creative ways to do business with their customers including:

• AutoPro – This free service was introduced in 1994 to give up to three competitive insurance rate comparisons by phone or online. Progressive's rate may, or may not be the lowest rate. You do not have to be a Progressive customer to use AutoPro.

• Purchase a boat or motorcycle policy on the Progressive website – You can cut through the time and paperwork usually required to insure these vehicles.

• File a claim or manage your policy on Progressive website – You can file your claim and monitor the settlement without having to phone or write to a claims representative.

• Immediate Response Claims Service – Company claim adjusters have been working at the scenes of their customers' car accidents since 1990. They no longer sit in a centralized claim office waiting for the insurance claim paperwork and the damaged vehicles to be brought to them. This on-site practice greatly expedites the claims process.

• Immediate Response Vehicles – Progressive Insurance introduced a fleet of white Ford Explorers in 1994 to function as mobile claims offices. The vehicle has all the voice and computer technology required to provide a claims adjuster with enough data to make a settlement decision. In most cases, the adjuster can write a settlement check at the scene of the accident.

Summary

Progressive Insurance and service oriented architecture has recreated the standard for how car insurance is sold and how claims are handled. The company is customer-oriented and has developed new business practices that use technology with a customer focus. These practices are designed to provide high quality customer service and to create an environment in which the customer can quickly and easily purchase car insurance and handle their insurance claims.

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