New NAIC knowledge exhibits that whereas the insurer stays in third place, it’s gaining on its rivals.
US third place Progressive is gaining on its rivals when it comes to its share of auto insurance coverage premiums collected throughout the nation. This in keeping with Nationwide Affiliation of Insurance coverage Commissioners (NAIC) knowledge not too long ago launched.
Whereas State Farm and GEICO maintain their high spots, Progressive is steadily closing in on them.
In keeping with the NAIC auto insurance coverage premiums knowledge, Progressive’s share rose by 1.05 % final yr, bringing it to 13.3 % of US {dollars} within the personal passenger market. The NAIC knowledge included 99.38 % of the insurance coverage trade’s property and casualty filings.
GEICO had been maintaining a robust maintain on its second-place standing behind State Farm. That mentioned, final yr, it did slide by 0.24 proportion factors, bringing its share of the personal passenger auto trade to 13.54 precent. This exhibits that Progressive is certainly posing a risk to GEICO’s place and that it has the potential to overhaul if developments proceed of their present instructions.
Progressive has been spending closely on its focus for progress in auto insurance coverage premiums and insurance policies.
Final yr, the corporate reported spending over $3.27 billion on coverage acquisitions. This was a rise of $250 million over the quantity it had spent on this objective in 2019. Furthermore, the insurer spent $5.57 billion on different underwriting bills final yr, which was an virtually $595 billion enhance over its spending in 2019.
Its advert spending final yr was virtually $2.18 billion. In 2019, the corporate spent a a lot decrease $1.84 billion on advertisements.
“Progressive’s different underwriting bills, which excludes the policyholder credit, elevated 12% in 2020 and 19% in 2019, partly reflecting elevated promoting spend in each years,” learn Progressive’s annual report. “On a year-over-year foundation, our promoting expenditures elevated 18% and 29% in 2020 and 2019, respectively. We are going to proceed to put money into promoting so long as we generate gross sales at a value beneath the utmost quantity we’re keen to spend to accumulate a brand new buyer.”
Whereas different insurers corresponding to Allstate (fourth place) have been making strikes to enhance their rank for auto insurance coverage premiums, Progressive stays the stand-out during the last yr. If the pattern continues, it may change its market share place within the not-too-distant future.
