Progressive Corp. (PGR) has entered into an agreement with Web.com to provide online marketing facility to its independent insurance agents as more than half of them do not have websites. According to the comScore Online Auto Insurance Report from April 2009, around three-fourths of auto insurance customers shop online and about two-thirds ultimately buy from an agent.
Web.com is a leader in providing online marketing for small businesses. According to the agreement, Progressive’s agent will get a discount on Web.com’s base pricing, a professionally designed website with a unique domain along with real-time agent quoting and servicing platform. In addition, agents will benefit from being listed on all major search engines and directories, access to a scorecard measuring real-time results and website analytics.
Progressive is one of the largest auto insurers in U.S., a leading independent agency writer of private passenger auto coverage, the largest seller of motorcycles and a market leader in commercial auto insurance based on premiums written.
It is also a leader in underwriting technology and the application of quantitative analytics in pricing and risk selection. Progressive’s rates are very competitive in all its markets. The company has several initiatives underway aimed at providing clients with distinctive new auto-insurance options. We note that Internet-generated business continues to be the fastest growth area for Progressive.
The economic downturn has hurt the auto insurance market and curtailed earnings of Progressive as well as other auto insurance providers, such as Allstate Corp. (ALL), Infinity Property and Casualty Corp. (IPCC) and State Auto Financial Corp. (STFC). Hence, this partnership with Web.com is encouraging as it will enhance Progressive’s online reach, aid business growth and strengthen its market share over its peers.
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