Progressive is the fourth-largest auto insurer in the country, and they gain market share literally every single year. The internet has disrupted many industries. Now, it’s disrupting car insurance.
Online sales are growing faster than sales from your local agent, and that’s probably not a surprising statement, but what’s interesting is that several top players — names like State Farm, Countrywide and Nationwide — have invested significantly in their agent network and they don’t want to cannibalize it with an online presence.
So as customers start shopping online, Progressive just keeps gaining market share, and that’s not going to stop. Interestingly, State Farm, Countrywide and Nationwide are all structured as mutual companies instead of for-profit companies. So they are not even trying to make money. We think that Progressive has a bright future.