Progressive 2013 Annual Report Download - page 54

During 2013, we launched a marketing campaign to communicate the benefits of Snapshot in a way we believe will better
convey the product advantages to consumers. Specifically, the messaging focuses on how good drivers are paying more for
insurance due to the poorer driving and insurance profiles of other drivers, and how Snapshot offers drivers the opportunity
to limit this risk by personalizing their insurance rate based on their own driving behavior. Our belief is that these messages
will resonate even more with consumers. In addition, during the year, several thousand of our independent insurance
agents took the opportunity to “test drive” Snapshot to allow them to experience the product and enable them to
communicate with their customers the ease of using the Snapshot device and the benefits of capturing the additional rating
variable.
We are also continuing with our efforts to further penetrate customer households through cross-selling auto policies with our
special lines products and vice versa, as well as through Progressive Home Advantage®(PHA). PHA is the program in
which we “bundle” our auto product with property insurance provided by eleven unaffiliated insurance carriers. Bundled
products are an integral part of our consumer offerings and an important part of our strategic agenda, since these
customers tend to stay with us longer, have better loss experience, and represent a sizable segment of the market. More
and more of our customers, especially direct customers, are now multi-product customers with combinations of auto, special
lines, home or renters coverage. During 2012 and 2013, our key provider for PHA in the Agency channel, American
Strategic Insurance, expanded into nine additional states with further expansion planned in 2014. As of December 31, 2013,
PHA was available to Direct customers in 48 states, Agency customers in 23 states, and to both Direct and Agency
customers in the District of Columbia. PHA is not currently available to customers in Alaska and is only available to Agency
customers in Florida.
Expanding our capabilities in the mobile space remains an important initiative. Consumers want the ability to transact all
forms of business when and where they want and on whatever device best suits their needs (e.g., phone, tablet, mini). We
provide consumers the ability to obtain a quote for and buy an auto insurance policy on our mobile website in all states and
the District of Columbia. During 2013, we expanded our mobile quoting feature to allow consumers to obtain a quote for up
to five drivers and four vehicles. This multi-driver, multi-feature capability meets 99% of consumer needs and is available
nationwide. Quoting, sales, payments, and document requests by mobile device all now represent strong double digit
percentages, and in some cases approaching a quarter, of all such transactions with Progressive.
In addition, we continue to provide the comparison rate experience on a mobile device in most of the country. We also allow
consumers to use the camera in their mobile device to photograph their driver license and/or current insurance card, to
provide easy data fill for an instantaneous quote. This feature is available in 36 states and the District of Columbia. Also,
policyholders are able to make payments and add certain endorsements from their mobile device, as well as receive
identification cards and text alerts for billing and severe weather. Furthermore, much of our agency-dedicated website,
which includes quote/buy, servicing, and reporting capabilities, is accessible to agents through many brands of tablet
computers and mobile phones. We understand the importance of the mobile space and continue to look for opportunities to
add new functionality to our mobile website and mobile applications.
During 2013, we completed the national rollout of a product model in our Commercial Lines business that began two years
ago. This model expands our coverage offerings, simplifies the quoting and claims experience, and provides incentives for
customers to stay with us longer. In addition, through our Progressive Commercial AdvantageSM program, we offer general
liability and business owners policies and workers’ compensation coverage, all of which are written by seven unaffiliated
insurance companies, or placed with additional companies through unaffiliated insurance agencies. The workers’
compensation coverage is offered in 44 states, while the other products are offered throughout the continental
United States.
We experienced the following changes in written premium per policy:
Change Over Prior Year
2013 2012 2011
WRITTEN PREMIUM PER POLICY
Personal Lines – auto 4% 3% (1)%
Commercial Lines 5% 10% 5%
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