Changing Channels: Progressive Insurance Drive Insurance
5 Pages Posted: 16 Jun 2009
Abstract
Sequel to Progressive Insurance: Not Your Standard Insurance Story. The company launches a new sub-brand, Drive Insurance, which will be only sold through independent agents, not through the Web or 1-800 numbers.
Excerpt
UVA-M-DRAFT UVA-M-0756
CHANGING CHANNELS:
PROGRESSIVE INSURANCE DRIVE INSURANCE
Introduction
In 1992, Progressive Insurance was the leading seller of automobile insurance through local independent agents in the United States. Its network numbered about 30,000 agencies.
Progressive made comparison prices available on-line in 1996 and began selling policies on-line in 1997, both through its own Web site and through third-party Web sites like InsWeb and Quotesmith. Still, in 1998, only 10% to 15% of the company's business was generated through its direct channel. By 2004, it had grown to 31% and the independent agents, who had long complained about Progressive's relatively low commissions, were becoming nervous over Progressive's success in establishing its brand (even as they benefited from it) and growth in the direct channel.
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Keywords: Branding, Channel Conflict
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