1. Case Analysis MBAM619.11 Hongchul Jun, Yokesh Kumar, Samantha Tang, Kenny Toop, & Ali Yazdi

8. Industry Chain Insurance Companies Internal Agencies Independent Agencies Governments Regulations Remote Selling Drivers Non-standard Standard Standard

10. Industry Analysis Source: http://www.census.gov/econ/census02/data/industry/E524126.HTM This industry comprises establishments primarily engaged in initially underwriting insurance policies that protect policyholders against losses that may occur as a result of property damage or liability. SIC Code - 6331 Establishments primarily engaged in underwriting fire, marine, and casualty insurance. Source: http://www.osha.gov/pls/imis/sic_manual.display?id=260&tab=description

11. Industry Analysis Year $ billion Market size grew from $21 billion in 1975 to $109 billion in 1993 The top 10 underwriters accounted for approximately 51% of the total market

12. Industry Analysis Source: http://www.naic.org/documents/research_premium_by_LOB.pdf

13. Industry Analysis Source: http://finance.yahoo.com/q/ae?s=PGR Over the next 5 years (from current) the industry and sector growths are forecasted to be 10.8% and 9.1%, respectively

15. Data Gathering Inbound Logistics Operations Outbound Logistics Marketing & Sales After Sales Service Traditional Auto Insurance Industry Value Chain Underwriting margin : 2% Rating Underwriting

18. Data Gathering Inbound Logistics Operations Outbound Logistics Marketing & Sales After Sales Service Progressive Auto Insurance Value Chain Immediate response System Process 30% more claims Underwriting Margin : 7.4% * *as of 2007 - Progressive annual report Rating Underwriting