The Managed Competition Celebrated Progressive's Move
03 Mar 2008
Progressive Insurance, which is the third-largest vehicle insurer in the U.S., wants to enter the market in Massachusetts with a new managed competition system.
"We appreciate the work the division has done to create a regulatory environment that allows companies to compete for customers," said Cathy Wilton-Bransch, Massachusetts product manager for Progressive, in a statement.
Progressive Insurance will provide substantial choices in rates and products, which means that the consumer can purchase policies through the website (http://www.progressive.com) of the company. It is like a “Social Software“, where the consumers can choose between a lot of agents. Due to various information, like what type of vehicle or the individually driving habits, the consumer gets a range of prices under the new system.
Until today insurer had not that high flexibility to define their own rates. With this system the companies are able to choose their own prices.
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