P&C Specialist recently published a list of the most sued insurance companies in the United States. Several State Farm units lead the list – which you’d expect because they’re the largest insurer in the nation.
On the other hand, the second largest carrier – Progressive – isn’t even on the list once. Even in auto insurance where they are now effectively tied with State Farm. Which is surprising. Why? While I don’t know, I can speculate that it has something to do with Progressive’s relentless focus on hitting or exceeding its 96% personal auto combined ratio goal.
Lawsuits represent a quality problem. Something went wrong, either you’ve signed up too many high risk, litigation prone customers or your business operates in ways that severely disappoints customers. A third possible reason is that State Farm is just an easy target while Progressive is tougher.
I honestly don’t know. So I am asking the audience: why wouldn’t Progressive be on this list? What do they do differently to avoid lawsuits? Or is it because most of the litigation in Homeowners where Progressive is a relatively small (but rapidly growing) player?
