Progressive 2014 Annual Report Download - page 54

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In addition, during 2014, we introduced our own renters insurance product in our Agency channel. As of December 31,
2014, this product was offered in three states. We intend to roll out this product to additional states as part of our bundling
strategy. The purpose of selling this renters insurance product is to write and retain more auto business and the size of the
program will not significantly change our risk profile.
Expanding our capabilities in the mobile space also 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., smartphone, tablet).
We provide consumers with 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. Our mobile quoting feature allows consumers nationwide to obtain a quote for at least
five drivers and four vehicles. In most states, consumers can quote up to 12 drivers and 12 vehicles. We believe this multi-
driver, multi-feature capability meets virtually all of consumer needs. We also provide the comparison rate experience on
mobile devices and tablets in most of the country.
During 2014, we enhanced our mobile application for iPhone®and Android®smartphones to allow policyholders to easily
access their policy documents, make payments directly from their checking account, and view both their payment schedule
and billing history. Policyholders can also add endorsements and make account changes from their mobile device, as well
as receive text alerts for billing and severe weather. In addition, much of our agency-dedicated website, which includes
quote/buy, servicing, and reporting capabilities, is accessible to agents through many brands of tablet computers.
Our mobile application allows policyholders to view, store, and share their digital insurance ID card, which can be used as
legal proof of insurance in most of the country. In addition, policyholders can report their claims and submit related photos
using the application, as well as use their phone’s GPS capabilities to specify the location of the claim. We also allow
consumers to use their phone’s camera to photograph their driver license and/or current insurance card to provide easy
data fill for quotes started from our mobile application in 36 states and the District of Columbia. Our Commercial Lines
customers can also now view their identification cards and certificates of insurance through this application.
Quotes, sales, payments, and document requests from mobile devices have been increasing and now represent low
double-digit percentages of such transactions with Progressive. We recognize the importance of the mobile space and look
for opportunities to add new functionality to our mobile websites and applications.
We are also expanding our Commercial Auto coverage offerings through our latest product model, which 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 unaffiliated insurance companies or 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
2014 2013 2012
WRITTEN PREMIUM PER POLICY
Personal Lines – auto 3% 4% 3%
Commercial Lines 4% 5% 10%
The increased written premium per policy in our personal auto business reflects increases in written premium per policy in
both our Agency and Direct auto businesses, primarily related to rate increases taken during the first half of 2014. For our
Commercial Lines business, the 2014 increase in written premium per policy primarily reflects rate increases taken
throughout 2014, principally on new business in our for-hire transportation and for-hire specialty business market targets.
Adjusting rates is an ongoing process and we will continue to evaluate future rate needs and react quickly as we recognize
changing loss cost trends at the state level. See below for additional discussion on written premium per policy for our
Agency and Direct auto channels and our Commercial Lines business.
Another important element affecting growth is customer retention. One measure of retention is policy life expectancy, which
is our actuarial estimate of the average length of time that a policy (including any renewals) will remain in force before
App.-A-53