Progressive Builds A Permanent Cat Center

Progressive announced it has opened a permanent catastrophe response center in Mayfield Heights, Ohio, close by the insurer's Mayfield Village headquarters.

The company said it created the new facility to make its claims processing more efficient and accessible for customers.

Creation of the response center, Progressive said, enhances the abilities of its “inside operations” team (administrative representatives who handle the calls and process claims) and “outside operations” team (the field adjusters).

In the past after catastrophes Progressive said it would set up inside operations in temporary offices in or near a storm-stricken area. This team is responsible for calling customers, verifying coverage, and scheduling appointments and other administrative functions as needed, the company explained.

Scott Snapp, national catastrophe response director for Progressive, explained that after the 2004 storm season, the company saw an advantage in establishing a permanent catastrophe claims center.

“It was clear we needed to do something long term,” he said.

The advantage of having a permanent center, said Mr. Snapp, is the flexibility to quickly build-up staff when a catastrophe strikes and handle the upsurge in claims, and still maintain a claims presence over an extended period of time as the claim numbers wind down.

“In the advance of a storm, we can bring in the number of resources necessary and respond accordingly,” said Mr. Snapp.

He said when customers pick up the phone and try to reach the company in a time of need and catastrophe, “we want to be there; we want to answer the phone.”

The center is housed in a building that became available as the company shifted other divisions to larger facilities. The facility, said Mr. Snapp, can accommodate up to 400 claims representatives.

The center will handle customers for both Progressive direct and Drive Insurance, sold through independent agents.

Mr. Snapp said the company has also increased the number of claims people in its organization. Progressive said it employs more than 13,200 claims people in more than 460 offices throughout the country. It also operates more than 26 claims service centers in 12 states.

Claims adjusters, Mr. Snapp pointed out, are placed in three tiers. There is the full-time team available for all types of claims. There are also secondary or primary responders who join the company in times of crisis and are there for as long as the company needs them. The third layer consists of secondary responders who rotate into catastrophe areas when the need for adjusters is at its greatest.

Asked about Progressive's ability to respond to another Hurricane Katrina-like event, he said the carrier is certain of its ability to respond.

Mr. Snapp recounted that in the aftermath of the devastation that hit the Gulf states, the company became creative in making communication between carrier and customers available, including the use of text messaging, e-mail and developing alternative numbers for customers to call.

“When you have a company the size of ours, with the resources and planning we put into place, confidence is always very high in both our planning and our ability to execute and respond,” said Mr. Snapp.