It is no accident that the rapid rise in living standards over the past century has coincided with tremendous technological progress throughout the economy. At a fundamental level, rising living standards require the economy to generate an ever-increasing supply of
The Progressive Corporation has offered insurance products to consumers since 1937 and is currently estimated to be the fourth largest private passenger automobile insurer in the United States. Progressive trails State Farm, GEICO, and Allstate and has overall market share
In this article, we will take a look at comments made in Warren Buffett’s 2010 annual letter regarding GEICO’s valuation and examine potential implications for the intrinsic value of Progressive, GEICO’s most fierce competitor. Read this article for more details.
J.D. Power released its 2010 U.S. National Auto Insurance Study (pdf) today and found that overall consumer satisfaction with insurance companies declined in 2010 after peaking in 2009. Overall satisfaction averages 777 on a 1,000 point scale which represents a decrease of ten points from 2009. The study measures consumer satisfaction across five factors: interaction, policy offerings, billing and payment, price, and claims. The main factor that led to the 2010 decline in satisfaction was due to price increases, which was reported by 22 percent of customers. Read this article for more details.
Progressive has introduced a new discount program designed to offer lower auto insurance premiums to drivers who have favorable risk profiles. The idea of offering discounts to drivers who do not use their cars for commuting or drive very rarely is nothing new. Auto insurers have been surveying customers for years regarding such habits. However, Progressive’s new program is not based on subjective self reporting. The company will monitor driver behavior using an electronic device.