Progressive Corporation, the third largest auto insurance company in the country, sees a trend in the industry that revolves auto insurance in buyer's market. According to CEO Glenn Renwick development of the online insurance market has provided consumers with the means to make more aggressive shop for insurance. The result was a price competition among insurers has led to lower rates.
"There is a power shift to the consumer," Mr. Renwick. He noted that the industry has experienced cycles when growth in revenues is due to higher premiums instead increase in drivers. This does not mean the situation today, as he referred to the current business climate affecting "deflationary" on prices. he added that for customers seeking renewal in particular, price is an important factor.
speaks to the increasing sophistication of the purchaser of auto insurance. said Mr. Renwick, "We want to ensure that we do not lose them to someone another at a price we would be comfortable. "
Regarding assistance, the leader of the Progressive Management noted that other insurers are also lower rates, with part of the impetus being that the frequency of accidents has remained stable or decreased each year since 1999.
that Internet sales do not give any possibility of negotiation does not seem to deter buyers. More auto insurance quotes are generated by "electronic agents", indicating that more consumers use the Internet. "It is definitely a growing trend," Renwick said.
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