Changing Channels: Progressive Insurance Drive Insurance

5 Pages Posted: 16 Jun 2009

See all articles by Paul Farris

Paul Farris

University of Virginia - Darden School of Business

Phillip E. Pfeifer

University of Virginia - Darden School of Business

Alan Zimmerman

City University of New York/College of Staten Island

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.

. . .

Keywords: Branding, Channel Conflict

Suggested Citation

Farris, Paul and Pfeifer, Phillip E. and Zimmerman, Alan, Changing Channels: Progressive Insurance Drive Insurance. Darden Case No. UVA-M-0756. Available at SSRN: https://ssrn.com/abstract=1420588

Paul Farris (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-0524 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/farris.htm

Phillip E. Pfeifer

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4803 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/Pfeifer.htm

Alan Zimmerman

City University of New York/College of Staten Island ( email )

NY
United States

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