The insurer is looking into moving into a new market as the CEO says there is “more to come.”
It may not be too long before Progressive life insurance becomes a product available to consumers in the United States.
Though the move is far from confirmed, the insurer’s CEO has indicated that it is being considered.
“We actually are considering that,” said Tricia Griffith, chief executive officer, when asked about the potential for Progressive life insurance in the future. “We have a life-insurance company filed in Ohio. More to come on that.” Griffith shared this news while speaking in an interview on “The David Rubenstein Show: Peer-to-Peer Conversations”, on Bloomberg Television.
At the moment,the insurance company is the third largest auto policy provider in the United States. A move into the life insurance business would be a substantial and nearly entirely new move for the insurer. The company has already established a “great relationship” with a partner in that market. It receives a commission for sales of life policies, explained Griffith.
By that, Griffith was making reference to the potential customer referrals it sends to eFinancial LLC, which places the policies with another carrier, according to Progressive’s official website.
Progressive life insurance is among the new options the insurer is considering since the pandemic changes.
The onset of the pandemic has changed the shape of many types of coverage within the US insurance industry. Insurance news headlines have featured these evolutions for several months. Among them, and most applicable to Progressive, has been the refunds, discounts and other forms of returned funds to auto insurance policyholders.
Griffith’s insurer is among the large auto insurance companies in the United States that have used one method or another to return funds or discount coverage since the start of the pandemic. Lockdowns and a rapid shift to remote employment has greatly reduced the amount of traffic on the roads. As a result, the frequency of crashes has also reduced. With reduced risk arrived a sudden decrease in the cost of providing coverage.
Progressive life insurance has become a new area that the insurer is considering on top of its existing lines. While driving remains low compared to pre-pandemic levels, people are heading out again and are doing so more frequently, said Griffith.
“As states have reopened, it continues to go up,” she said. “We’re still not pre-COVID levels of driving. We’re about 8% to 10% down.”
