Great update! Your past commentary on GEICO's lost share is interesting. BRK is well known to ramp up underwriting after a hurricane has hit and others are scaling back. It appears that PGR has used BRK's playbook on BRK over the past 1 - 2 years. It will be interesting how/where BRK tries to recapture the lost share from. Particularly in an environment where PGR is back in growth mode. Granted, there are many weaker players in this space. GEICO has definitely fixed its CR, but it has come at a big cost.
Buffett and Jain have both discussed Progressive's lead in telematics. This insight into driver behavior allowed them to better match rate and risk, thereby retaining more customers. GEICO has been trying to play catchup for years. The lost market share of 2022/2023 will be expensive to regain. This is one case where Berkshire's aversion to technology might have cost it. GEICO is still a very strong business and has a solid future, so it will be interesting to see how they approach growth in 2024.
Great update! Your past commentary on GEICO's lost share is interesting. BRK is well known to ramp up underwriting after a hurricane has hit and others are scaling back. It appears that PGR has used BRK's playbook on BRK over the past 1 - 2 years. It will be interesting how/where BRK tries to recapture the lost share from. Particularly in an environment where PGR is back in growth mode. Granted, there are many weaker players in this space. GEICO has definitely fixed its CR, but it has come at a big cost.
Buffett and Jain have both discussed Progressive's lead in telematics. This insight into driver behavior allowed them to better match rate and risk, thereby retaining more customers. GEICO has been trying to play catchup for years. The lost market share of 2022/2023 will be expensive to regain. This is one case where Berkshire's aversion to technology might have cost it. GEICO is still a very strong business and has a solid future, so it will be interesting to see how they approach growth in 2024.