1. What is Progressive’s business? a. .To provide vehicles owners with security and protection : insurance coverage b. .Damages compensation c. .Quick claims service d. .Immediate response vehicles : inspect of the scene of an accident, estimate, claim and print checks 2. What is critical to the success of the business? a. Quality of the service: quick payment of the claims Claims processing, timeliness of response b. .Direct link between adjusters and clients c. .Vehicle fully equipped to take care of an accident scene d. .Presence of a fleet of vehicles next to dangerous intersections e. .Data management.
Risk factors and Cost of repairs are processed by an underwriter who determines the premium to pay. This is based on the Law of Large Number (probability). Accident, IRV comes (with radio, call and GPS). The agent asks the customer ID. It goes to the claim systems in Data center, which is connected to the policy system. The customer information is sent to the agent. The agent tries to find out what happened: takes pictures which go to the data center. Same with police report. Claims processing center takes all the information: tells how much is due. Sends the information to the agent. The check is printed.
3. How does Progressive’s use of hardware contribute to these success factors? |Critical Success Factor |Type of Hardware |Contributions | |Quality of the service: quick |Laptop |. laptops enable to send and to collect data about the client, to| |payment of the claims |Printers |identify its account on site | | | |. printers enable to issue estimates, claims and checks on site | |Direct link between adjusters and |Vehicles, laptop, cell phones |. Vehicles enable adjusters to move quickly if there is an | |clients | |accident | | | |. laptops enables the instantaneous identification of the client.
Cell phones enables to reach any person needed | |Vehicle fully equipped to take |Vehicles, laptop, printers, cell|. digital cameras enable to take picture of a scene | |care of an accident scene |phones, digital cameras |. laptop and printers enable the adjusters to do all the process | | | |(until payment) | |Presence of a fleet of vehicles |Vehicles, radio, dispatchers |Radio enables to follows the traffic news | |next to dangerous intersections | |Dispatchers tell the adjusters where to be, where they are | | | |needed | |Data management |laptop |Enables the access to the client account, his coverage, his | | | |previous accidents | 4.
How does all of this use of hardware benefit customers? |Type of Hardware |Customer Benefit | |Laptop |. the adjuster has access to the customers’ information: no need to | |Cell phones |repeat every personal information | | |. if the adjuster registers information, the data will be centralized | | |so the account will be updated | | |. customers don’t have to come to the office | | |Customers can get their check on-site and rapidly | | |. Customers don’t have to wait in line | |Printers |. customers don’t have to wait to receive their mail | | |. customers are given everything they need to fix their problem on-site| |Digital cameras |.customers will be quickly assisted in case of accident | |Radio |. concern about customers’ security | |dispatchers.
5. Relate Moore’s law to this case. a. The number of IRVs has skyrocketed (10 to 2,600), as the number of laptop and their processing speed b. Adjusters can do twice the workload the could 10 years ago c. Adjusters can take an infinite number of pictures thanks to digital cameras, so they need more storage in computers d. The use of videos also requires more storage capacity e. Guiding principle : will need more and more processing capacities if Progressive Insurance wants to keep expanding.