Progressive 2011 Annual Report Download - page 14

ago seemed state-of-the-art. Without data, only dangerous
inferences can be drawn. Our commitment to building an
initial data set has been a disciplined undertaking over several
years and now, with a viable product in-market, our reward
of ever expanding data is tremendous. We now measure data
in miles of behavioral observation and at last count we have
the equivalent of multiple round trips to Mars.
We now measure data in miles of behavioral
observation and at last count we have the equivalent
of multiple round trips to Mars.
Snapshot and usage-based data in auto insurance rating has
been well accepted by regulators who have allowed us to
protect our proprietary algorithm in 39 states and the District
of Columbia, for which we are very appreciative. The U.S.
patent office has equally affirmed our existing in tellectual
property, and has now approved one additional patent.
Consumers and those who speak for them have, with few
exceptions, been enthusiastic about the product, and privacy
concerns, so very prominent in the early years, have been
mitigated by the design and discrete monitoring periods.
Much remains to be done before the full power of usage-
based segmentation will be tapped. I sense that as good
as we feel today we will look back with some humility, in
future years, when we realize just what has been possible.
Product features and packaging, like Name Your Price,
®
provide consumers wishing to shop online a very real op-
portunity to leverage technology to their advantage and
explore a range of options available to them. Agents have
always provided the ability for customers to reach smart
decisions on price and coverage. Now Name Your Price in
combination with Snapshot provides for a powerful and
compelling quote process quite unlike our competitors.
Ever increasing product complexity must be presented to
consumers and agents with great, easy-to-use technology
interfaces. We’re fanatics about the presentation layer of our
products. We receive consistent recognition in agent surveys
as their leading company and equally consistent recognition
as the leading insurance website by Keynote. However, the
range of presentation formats has expanded greatly with
tablets and smart phones and that has our full attention. More
than 15% of search activity for Progressive, or other auto
insurance terms, is now mobile-device based and quoting
and sales attributed to mobile devices have grown at rates
that make days and weeks approximate early Internet months.
As noted last year, the potential for devices that are on your
person often with a camera and location software, is a new
and really exciting dimension for all aspects of our business
and I suggested to expect more in 2 011. I had the pleasure
of being directly involved with the team leading our mobile
strategy and their progress in 2 011 has been nothing short of
impressive. We talk in terms of “mobilize” not “miniaturize,”
which simply means using the capabilities versus adapting
the old product and presentation to new devices and formats.
Selecting just one initiative to build on the concept of prod-
uct design and presentation is our prototype application that
allows a consumer to use the camera in their device to send
a photo of a driver’s license and similarly their current insur-
ance card with vehicle identification number, and in return
get an insurance quote returned instantaneously. A quote that
then may well be further personalized by Name Your Price
and Snapshot. Expect more—I think that’s more...and better.
Old industries do reinvent themselves and this feels like it’s
going to be quite a ride.
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No 10 (Steffi, age 27)710 (Will, age 34)