Progressive 2010 Annual Report Download - page 14

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and reduced the costs, all, we believe, while
maintaining the rating effectiveness we know and
understand. Early rollout and transitions from
prior versions suggest that we are very much on-
track with the redesign objectives. Our repackaged
product known as Snapshot,
SM
reflecting the
“snapshot” of driving behavior we seek in the mon-
itoring period, is available through participating
agents and for online consumers. It’s hard not to
be excited by the potential for this concept and
our redesign. Our 2011 plans call for increasing the
number of states in which we offer the product,
further improving the customer experience, and
active marketing.
Ironically, usage-based insurance, a concept
correctly associated with Progressive, has
been around for most of the last decade, but the
technology to track in-vehicle data and the in-
surance product development were for the most
part experimental. The later years of the decade
saw rapid improvement in the technology and
the cumulative knowledge we had acquired was
leading to a better product and increasingly
improved commercialization of the idea. 2010,
however, was a breakthrough year. We drama-
tically repackaged the concept, making the
consumer experience easier, incorporated usage
as a product feature within our mainstream prod-
uct offering, simplified the marketing message,
16