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  • May 2002 (Revised February 2004)
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Innovation at Progressive (A): Pay-As-You-Go Insurance

By: Frances X. Frei and Hanna Rodriguez-Farrar
  • Format:Print
  • | Pages:20
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Abstract

Consumer auto insurance is a price-sensitive industry in which customers rarely pay a premium to a provider even for additional service features. Progressive spends more on additional service features than its competitors do; consumers don't pay extra for these features, yet the company makes money on a product its competitors often do not. Central to Progressive's success is its ability (a) to turn operational savings into value-added service and (b) to capitalize on its unique competencies through clever service design. Progressive is considering a national rollout of Autograph, a pay-as-you-go insurance service offering that recently completed a successful pilot in Texas.

Citation

Frei, Frances X., and Hanna Rodriguez-Farrar. "Innovation at Progressive (A): Pay-As-You-Go Insurance." Harvard Business School Case 602-175, February 2004. (Revised from original May 2002 version.)
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About The Author

Frances X. Frei

Technology and Operations Management
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Related Work

    • June 2001 (Revised May 2002)
    • Faculty Research

    Innovation at Progressive (C): Auto Repair

    By: Frances X. Frei and Hanna Rodriguez-Farrar
    • June 2001 (Revised April 2004)
    • Faculty Research

    Innovation at Progressive (B): Homeowners Insurance

    By: Frances X. Frei and Hanna Rodriguez-Farrar
Related Work
  • Innovation at Progressive (C): Auto Repair By: Frances X. Frei and Hanna Rodriguez-Farrar
  • Innovation at Progressive (B): Homeowners Insurance By: Frances X. Frei and Hanna Rodriguez-Farrar
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