2011 Customer Service Hall of Shame - Progressive
'Poor' rating: 30.2%
It's not exactly easy to love an insurance company.
But come time, some insurers clearly do a better job than others at satisfying -- or in some cases, dissatisfying -- their customers. This year two insurers, Progressive (PGR) and Farmers, make their inaugural appearances in our Customer Service Hall of Shame.
In the 2011 MSN Money-Zogby survey, 30.2% of those familiar with Progressive's customer service called it "poor," a score that puts it roughly on par with Farmers, at 29.1%.
Progressive, founded in 1937, is the nation's fourth-largest auto insurer and is growing, thanks in part to heavy advertising, direct sales, innovative pricing options and low rates.
How well the company pays when a claim arises is fodder for the complaint boards, like this one at ConsumerAffairs.com, where customers discuss being directed to low-cost auto shops and receiving inadequate repairs or reimbursement. In several states, auto repair shops have sued.
Progressive declined an interview. The company did send a written statement, saying "we want our customers to be satisfied," and "other third-party and internal" measurements "show that they are."
The insurer pointed to a Forrester Research award for the company's ability to solicit and respond to customer feedback. It also noted marketing nods for its emotionally engaging pitchwoman, Flo, the sassy brunette in white who gushes over Progressive's selections and prices. ("Isn't getting discounts great!?")
Progressive also pointed to its rising standings in the annual J.D. Power and Associates rankings. (In the J.D. Power 2010 customer-satisfaction index, Progressive scored 775, below the average score of 777 for the 32 national auto insurers ranked.)
Progressive posted a $1.07 billion profit in 2010. CEO Glenn M. Renwick received $9.6 million in compensation for the year.
