Drive Insurance

Revised: 09/22/2006

“Drive Insurance” To Brand Independent Agents

By Mark E. Ruquet, NU Online News Service, Dec. 2, 2004 - Progressive Insurance wants to let customers know it is more than a direct seller and has unveiled an initiative to drive consumers to the independent agent system.

Progressive management said its effort, which is called “Drive Insurance,” complements the Alexandria, Va.-based Independent Insurance Agents and Brokers of America branding effort called Trusted Choice.

Mayfield Village, Ohio-based auto insurer Progressive, known for its online quoting system, has launched the “Drive” branding initiative to make customers aware that there is another avenue for consumers who want to take advantage of Progressive's products.

Ben Sheridan, general manager for the carrier, explained that for the past two years the company has worked on a branding initiative that would tell consumers the company is about more than just being a direct insurer. He said in a company-sponsored survey that 78 percent of consumers associate Progressive with direct insurance, unaware that the company built its business on the independent agent system.

Progressive's conclusion from the survey was, “We have a problem,” he said.

The company concluded it needed to build a brand name that consumers would associate with independent agents, and at the same time would benefit its independent agent sales force.

The branding initiative is the result of that work, said Mr. Sheridan.

Much like the IABA Trusted Choice activity, Drive Insurance aims to educate consumers about the value of independent agents as counselors and designers for consumer's insurance needs, he said.

Mr. Sheridan admitted that by raising the profile of independent agents in the minds of consumers some of that business may go elsewhere “because they are not customers for Progressive,” but the company's purpose is to help its independent agents grow.

“We are, by far, the largest auto insurer sold by independent agents,” he noted, with a sales force of 30,000 agents. “And if they grow, we grow.” He added that of those customers who do end up going to other carriers as a result of Drive's branding, “we [will] get them in the long run.”

Progressive is a company partner in the Trusted Choice program, said Mr. Sheridan, and Drive compliments IIABA's work.

Drive Insurance was launched Sept. 21 before 200 of the company's most successful independent agents at an unveiling in Las Vegas. The company will fund a multimillion-dollar ad campaign directed to the more than $10 billion worth of agency business.

Commercials are currently airing in Florida before going out nationally in January. The 30-second spots will be aired during the National Football League division playoffs. There is also print, radio and direct mail advertising planned for a year-round campaign.

Mr. Sheridan admitted that there is some suspicion among producers of Progressive's commitment to the independent agency system. He said this is the company's initiative to “earn that independent agent trust.”

“We do believe in the independent agent system and we are out to prove it,” he explained. “We plan to work over a period of years to earn [their] trust and we are committed to it. Trust is not something you ask for; you have to get it one agent at a time.”

An online information service of the United Farmers Agents Association, Inc.