Progressive has done it. They’ve knocked State Farm off the top spot as the biggest U.S. auto insurer.. With a market share of 16.2%—just a hair behind Progressive’s 16.4%
Not unexpected but newsworthy.
11 replies (most recent on top)
They done bitttch! Of course they’re hiring more claim handlers, they are anticipating many many more claims from those many new policy badly vetted people!
State Farm Execs have been recycling that same old worn out delusional huddle point for 2 decades! The fact is Progressive and Geico has better underwriting models than SF! They have for over 20 years! We run a defector listing and see that they take our best insureds and we write the business they non-renew and do not want any more. Called adverse selection! They can do that because we can never compete on price or frankly even on service! Their combined ratio is always a good 10 points better than ours simply for one reason! Our 103 pricing BS does not work! They do not have agents and have better tech! No one wants to f-ck with a reta-rd agent trying to sell them life insurance! If the huddle points were true Progressive would not have doubled their book of business and written premiums every 7-9 years! They are #1 now! We have basically lost market share to them every single year now for almost 2 decades! Plus they are not bogged down with all the agents yelling about multiline customers leaving or agents field discounting every single policy! Progressive has a superior business model and superior leadership that delivers actual results! You do not see them paying their Execs $24 million dollar bonuses and having $27 billion dollar losses (to go out and buy bad business). If they lost $27 billion they would have fired every single Exec, not rewarded them or recycled their wanna bezzsss buddies! If they get into an underwriting cycle it last maybe 6-12 months! Ours last 4-5 years and the only way we get out of it is to ignore our models, write a bunch of shady risks and f-ck over the workforce! SF days are numbered as it is basically not even a legitimate business anymore. If it wasn't for its huge bank account they would have already been done! The bill for total incompetence and immorality will come due even for companies as big as SF! Good riddance!
@xr It’s a simple fact in the industry…….loss ratios are highest on new business.
Progressive gained all those new policyholders online again all those new policy holders. Do you think it’s gonna hold up in a couple years when combine ratio goes to he-l because there was no real people underwriting those new applications with low rates compared to rational companies. State Farm had many new policyholders years ago and then the combined ratio went to he double toothpicks so sit back and watch the sh-t show hof pukegressive in year or two
No shareholders to answer to. 100 billion in reserves. They will be just fine. We can drop to 50 and still have that hundred billion sitting there collecting interest ready to pay out leadership bonuses. And let AI handle the grunt work.
Got a feeling that a whole lot more karma is coming their way.
@h3 Look for that in Farney's speech about how this was all part of the master plan. And the target will not be removed, the DOI's have got the scent of blood and have only scratched the surface on SF. They have years or work ahead of them before they can even switch gears and see what Progressive has been up to.
Another way to look at that is……,for the first time in 83 years, somebody else has the target painted on them.
Economy up........Insurance down. SF will be lucky if they can ride this wave.
The CEO Accountant, two former SF Agents and all the Process Engineers/Managers/Analyst is what is ki-ling SF! This is how it works, the Process folks performance ratings are based on finding ways to find "efficiency" and reduce expenses.. They make up BS processes, eliminate whole necessary departments or areas, and create imaginary efficiency tools like OTC, CHIP, CLIP, IOT, CHCD, SCPs, and all the other horrible tools/processes that actually not only make people less efficient and slows them down. Every 4-6 months they change some software we use or implement some new "going to save us all" process. They do a presentation to a bunch of re-arded Execs and other leadership that get catfished all the way. We can save :13 seconds per claim and we handle 20,000+ claims a day and that equates to 1000 FTE (full time equivalents) so let's move them to another department or not hire. Great job Larry, thanks Barb...what an impact! LOL! They all slap each other on the back and tell SM and TMs to go out and hold people accountable to this expected standard. In reality the change made people less efficient, added additional steps and made the job harder! Usually pi---s of the customer! We have been doing this now for over 10 years and all the other lean and EOM BS! They will do anything to keep their job and create false worth! ET is another huge issue too as we all know as they are in on it too! HR hires nothing but junk to keep themselves in business! This what happens when you become corporate led and take the decision making out of the people that actually do the work and responsible for the results! Go Progressive!
When they tossed aside their internal and external customers, what do you expect? The consultants and executive leadership have made their own bed. So much for focusing on business decisions and not their tenured people who made them great. Going from manageable inventories, excellent customer service, and employee focused to the opposite, they play the game and will pay one heck of a price. 25-million-dollar bonuses and cut employee costs? RICO suits? It all comes back when they fail to correct. No executive it is not all about you but the family and the policyholders everywhere. Wake up!