Progressive 2008 Annual Report Download - page 16

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objective is simple: reach new customers
who we might not have been reaching and
retain them and existing customers longer.
So far, so good, and in 2009 we will make
it available through additional agents.
We have placed additional emphasis
on understanding the needs of our multi-
policy households, especially those with
special lines products in addition to their
auto. We clearly have more opportunity
and have set challenging internal goals
for multi-policy penetration in 2009 based
on achieved results to date.
Our usage-based insurance offering,
now called MyRate,
SM expanded within and
across states in 2008. Notwithstanding
the continuous challenges posed by such
a new concept, the opportunity to reach
a set of customers that have significantly
different usage patterns than traditionally
underwritten products would recognize
is clear, and welcomed. Consumer accept-
ance is good. For us MyRate is slowly
moving from feeling like a new and dif-
ferent product to becoming a very viable
consumer option that speaks to a spe-
cific consumer segment.
Continuing to be innovative in all we do
The depth of this notion is not easily cap-
tured by a single example, but one may
serve well to amplify the thought and
share a recent product introduction.
Price is a clear factor in a consumer’s
purchasing decision and many efforts,
including our own, have focused on pro-
viding consumers with increased ac
cess
to price comparisons between providers.
This year we introduced a new concept
we call Name Your Price,
®which invites
the consumer to participate in the quot-
ing process by telling us just how much
they would like to spend on car insurance.
We start the quoting “conversation” in
a place determined by the customer.
Then we use combinations of coverages,
limits, and deductibles to meet or approx-
imate their needs. Involving the consumer
in this way is both respectful of their pref-
erences and involves them more actively
in the process.
Early results are very encouraging, but
even more important is the opportunity to
use technology to engage the consumer
in a meaningful and different way ensur-
ing they get what they want, at a price
they can manage.
Looking Forward
We remain continuously motivated by our aspiration of becom-
ing Consumers’ #1Choice for Auto Insurance and, while our
numerical progress in 2008 did not match our aspirations, some
of our actions set an interesting stage for the future.
Nothing we have achieved has been without the efforts of
so many and, our single most important initiative especially in
current times, is ensuring Progressive is a Great Place to Work.
Creating an environment where our people enjoy working hard,
are motivated to do their best, can grow constantly, and that
others want to join is a never-ending challenge. Our people and
culture are what makes us special.
Equally important is our appreciation for the customers we
are privileged to serve, the agents and brokers who choose to
represent us, and shareholders who support what we are doing.
Glenn M. Renwick
President and Chief Executive Officer