Auto Insurer Progresses Into Massachusetts

The Ohio-based Progressive Corporation, one of the top three auto insurance providers in the United States, recently started operations in the state of Massachusetts. The company began selling auto insurance in Massachusetts at the beginning of May, 2008. As of today, the company has sold over 10,000 vehicle insurance policies to Massachusetts customers.

Progressive began its operations in Massachusetts as a result of the state government’s revamping of Massachusetts auto insurance laws. The state’s new laws, which became effective on April 1, 2008, let auto insurance providers determine their own prices. Previously, the state required auto insurance companies operating in Massachusetts to charge customers the rates that it set. Now, Massachusetts requires only that insurance companies submit their rates and ratings systems to regulars from the state’s Department of Insurance.

Since Progressive’s entry into the state’s auto insurance market, the company has taken on 65 new employees from Massachusetts. Progressive intends to take on at least 70 additional workers before the year is out, due to the influx of business they’ve been receiving.

There are additional indicators that Progressive has been winning the trust of Massachusetts motorists, beyond the raw number of policies sold. Approximately 90% of the new Progressive customers in Massachusetts have given the company top ratings, in marketing surveys produced by Progressive. Progressive has issued similar surveys to its customers in other states, and only approximately 65% of the had given the company those kinds of top ratings.

Cathy Wilton-Bransch, the product manager in charge of the company’s Massachusetts operations, expresses satisfaction with how Progressive has fared in its new market. “We are very pleased,” Wilton-Bransch told the press. “We have exceeded expectation.”

Peter T. Robertson, a Massachusetts lawyer representing the interests of the state’s Property Casualty Insurers Association, agreed with Wilton-Bransch’s positive prognosis. “It’s not bad for a new entrant to the marketplace,” said Robertson of Progressive’s performance. “Massachusetts is a big agency market,” he explained, “and so many people are loyal to their agents.”

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