Innovation

According to its website, Progressive's vision is to reduce the human trauma and economic costs associated with automobile accidents by providing customers with services that help them get their lives back in order as quickly as possible. In an effort to support and promote that vision, Progressive was the first auto insurance provider to establish service centers that deliver a more convenient claims experience for its customers, thereby promoting peace of mind and well-being to those who choose to use the option.

The crux of the innovation is to alleviate the time and effort required by a customer to schedule repairs, get a rental car, and get back on the road. A Progressive service center will manage the repair process from start to finish at no extra charge, and those that use the service get the vehicle repaired up to two days faster on average than other centers. Each service center is equipped with rental cars so that customers can get back on the road quickly, typically within 15 minutes. The rental car comes at no extra charge to the customer if rental reimbursement coverage was purchased and in effect at the time of the incident.

In the event of an accident, a Progressive customer has the option to repair a vehicle at a body shop of the customer's choice, receive a check for the damages, or drop off the damaged vehicle at a service center if the incident occurs within 45 miles of the nearest location. If necessary, Progressive will tow the damaged vehicle to a pre-approved body shop when the service center option is selected.

If the vehicle is dropped off at a service center by the customer, a Progressive claims representative works with a pre-approved network shop to make the repairs. The body shop picks up the car within a few hours to start the repair process, and customers are contacted within 24 hours to communicate the extent of the damage and expected repair time. After the vehicle is repaired, a Progressive claims representative inspects the vehicle for issues and calls the customer to schedule a convenient time for pick up. Progressive guarantees the covered repairs for as long as the customer owns or leases the vehicle.

Aimee Swartz, director of Claims Experience at Progressive, alluded to the ease of use value proposition by stating, “Our customers will only interact with Progressive employees to keep the process easy. The logistics are handled behind the scenes to insulate the customer from having to learn the whole process. We are trying to be a one-stop shop.”

Progressive not only offers the service to its own customers, but also offers to handle the repairs for claimants if the company is responsible for paying the full extent of damages to the claimant’s vehicle. About 60%-65% of service center customers are policyholders, and the rest are claimants.

Inspiration

The introduction of service centers was inspired by a desire to eliminate the administrative friction between customers, body shops, rental companies and Progressive in settling a physical damage claim. Swartz said the idea originated from an internal white paper written by Glenn Renwick before he became Progressive’s CEO.

The proposal suggested that establishing Progressive service centers would provide a distinctive customer experience that would ultimately serve as a competitive advantage while delivering peace of mind to customers. Said Swartz, “Customers had to interact with body shops, which wasn’t always a comfortable experience. What if we took that burden away and did it for them?” The first service center was built in 1999. As of June 2016, Progressive has built 68 service centers across the nation with the aim of delighting customers by removing the burden of acting as the intermediary between body shops, rental companies, and Progressive in the event of a claim.

Overall impact

The introduction of service centers has generated a positive impact from a business perspective by strengthening the customer value proposition and creating a distinctive competitive advantage in the marketplace. Offering a unique and convenient customer experience has presumably strengthened the Progressive brand. The positive brand attribution is underscored by the fact that nine out of ten customers who have used the service center to manage repairs would recommend Progressive to a friend or family member. Additionally, internal metrics suggest that offering the service to claimants has helped heighten Progressive’s position as a carrier to consider when shopping for insurance.

The service centers have had a positive impact on society by removing the burden of managing the repair process and acting as the intermediary between stakeholders. Progressive’s service centers deliver peace of mind by acting as a one-stop shop for managing repairs, getting a rental car, and getting back on the road with a guarantee on repair work for as long as the customer owns or leases the vehicle.

Business benefit

Internal reporting suggests that claimants who use a service center to manage their repairs are nine times more likely to switch to Progressive than the average population. As Swartz put it, “We wanted to fundamentally change the customer experience, and our service center should be a disadvantage for our competitors.” Furthermore, Swartz mentioned that, “An efficient claims process allows us to keep prices low to provide affordable insurance to our customers.”

Social and environmental benefit

Aside from delivering peace of mind to claimants and customers, the claims representatives at each service center have engaged in community outreach efforts at their respective locations. For example, since 2013, Progressive has worked with repair shops and other partners to host its annual Keys to Progress vehicle giveaway event, through which vehicles are donated to deserving veterans. The collaborative initiative donated 59 cars in 2013, 117 cars in 2014 and 131 cars in 2015. Progressive was rewarded with a national “2015 Silver Anvil Award of Excellence” by the Public Relations Society of America for leading the Keys to Progress effort.

The claims organization at Progressive has also curbed its carbon emission footprint by gradually replacing 6-cylinder vehicles with 4-cylinder vehicles in its fleet of Claims Response Vehicles. In March 2010, Progressive service centers began offering reusable bags instead of cardboard boxes to customers that had to transfer items from the damaged vehicle. The hope is that customers will use the reusable bag in lieu of plastic bags, thereby promoting environmentally responsible behavior. In 2011, two service centers hosted an event to complete a safety inspection of child car seats for family vehicles in the local community. Fifty-nine car seats were inspected, and 6 car seats were replaced to attendees at no charge.

Interview

Aimee Swartz, Director of Claims Experience