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Progressive Engineering

To build innovative insurance technology systems that transform Progressive into the insurer of choice offering unmatched value

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To build innovative insurance technology systems that transform Progressive into the insurer of choice offering unmatched value

Strengths

  • PLATFORM: Industry-leading policy servicing digital platform
  • TALENT: Deep bench of experienced insurance technologists
  • DATA: Sophisticated data analytics and pricing algorithms
  • SCALE: Large technical infrastructure capable of handling growth
  • AGILITY: Proven ability to rapidly deploy technology solutions

Weaknesses

  • LEGACY: Technical debt in core policy administration systems
  • INTEGRATION: Siloed systems requiring complex integration
  • TALENT: Difficulty attracting cutting-edge AI/ML expertise
  • ARCHITECTURE: Monolithic architecture limiting deployment speed
  • SECURITY: Inconsistent security practices across platforms

Opportunities

  • TELEMATICS: Expanding usage-based insurance with IoT integration
  • AUTOMATION: Streamlining claims processing with advanced RPA
  • PERSONALIZATION: Enhancing digital experience with AI
  • MICROSERVICES: Modernizing architecture for greater flexibility
  • PARTNERSHIPS: Integrating with emerging insurtech platforms

Threats

  • COMPETITION: Big tech firms entering insurance technology space
  • REGULATION: Increasing data privacy and compliance burdens
  • CYBERSECURITY: Growing sophistication of cyber threats
  • TALENT: War for specialized insurance technology talent
  • DISRUPTION: Rapid insurtech innovation threatening market share

Key Priorities

  • MODERNIZATION: Accelerate core system modernization efforts
  • TALENT: Strategic hiring and upskilling for AI/ML capabilities
  • INTEGRATION: Build unified API layer for seamless experiences
  • SECURITY: Implement zero-trust architecture across platforms
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To build innovative insurance technology systems that transform Progressive into the insurer of choice offering unmatched value

MODERNIZE CORE

Transform legacy systems into flexible microservices

  • ARCHITECTURE: Migrate 40% of core policy admin components to microservices architecture by EOQ
  • PERFORMANCE: Reduce average API response time by 35% through caching and optimization
  • AUTOMATION: Achieve 85% test automation coverage for all critical business workflows
  • DELIVERY: Implement infrastructure-as-code for 100% of new deployments enhancing consistency
TALENT EDGE

Attract and develop premier insurance tech talent

  • RECRUITMENT: Fill 85% of open AI/ML engineering positions with qualified candidates
  • TRAINING: Complete advanced ML certification for 40% of engineering staff this quarter
  • RETENTION: Reduce engineering turnover to below 12% through career development initiatives
  • CULTURE: Achieve 85%+ favorable scores on engineering engagement survey for innovation
UNIFIED EXPERIENCE

Create seamless API layer for all customer touchpoints

  • INTEGRATION: Launch API gateway v2.0 with 99.99% availability and sub-100ms response time
  • ADOPTION: Migrate 70% of customer-facing applications to use new unified API layer
  • STANDARDS: Publish comprehensive API design guidelines with 90% compliance rate
  • MONITORING: Implement real-time API performance dashboards with alerting for all teams
FORTRESS SECURITY

Implement next-gen security across all platforms

  • ZERO-TRUST: Deploy identity-based access controls for 90% of critical infrastructure
  • AUTOMATION: Reduce security vulnerability remediation time from 12 days to 3 days
  • COMPLIANCE: Achieve SOC2 Type 2 certification for all customer-facing platforms
  • AWARENESS: Complete security training for 100% of engineering staff with 90% pass rate
METRICS
  • CONVERSION: Digital quote-to-bind conversion rate: 55%
  • DELIVERY: Release frequency: 250 production deployments per month
  • RELIABILITY: System availability: 99.99% uptime for customer-facing systems
VALUES
  • Excellence: Continuously striving for better results and improved processes
  • Integrity: Doing the right thing even when no one is watching
  • Innovation: Challenging conventions and pioneering new solutions
  • Golden Rule: Treating customers and colleagues as we would like to be treated
  • Tech-Forward: Embracing technology to drive competitive advantage
Progressive logo
Align the learnings

Progressive Engineering Retrospective

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To build innovative insurance technology systems that transform Progressive into the insurer of choice offering unmatched value

What Went Well

  • DIGITAL: Mobile app usage increased 27% year-over-year for policy management
  • UPTIME: Core systems maintained 99.98% availability during peak periods
  • DELIVERY: Completed cloud migration of claims processing 2 months early
  • EFFICIENCY: Reduced infrastructure costs by 12% through cloud optimization
  • INNOVATION: Successfully deployed ML-based fraud detection pilot program

Not So Well

  • INTEGRATION: API gateway performance issues impacted partner integrations
  • SECURITY: Experienced three severity 2 security incidents requiring fixes
  • TALENT: Engineering turnover rate reached 18%, above industry average
  • TECHNICAL DEBT: Legacy system maintenance consumed 35% of IT resources
  • DELIVERY: Data lake restructuring project fell 2 months behind schedule

Learnings

  • ARCHITECTURE: Service mesh implementation needs dedicated performance team
  • PROCESS: DevSecOps practices must be standardized across all development
  • TALENT: Remote-first hiring opens new talent pools for specialized roles
  • PLATFORM: Central API governance dramatically improved developer velocity
  • DATA: Data quality issues significantly impact machine learning accuracy

Action Items

  • ARCHITECTURE: Accelerate microservices transition for core policy systems
  • SECURITY: Implement automated security scanning in all CI/CD pipelines
  • TALENT: Launch specialized AI/ML engineering development program by Q3
  • INTEGRATION: Build unified API management platform with performance SLAs
  • AUTOMATION: Expand test automation coverage to 85% of critical systems
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To build innovative insurance technology systems that transform Progressive into the insurer of choice offering unmatched value

Strengths

  • DATA: Massive historical claims and customer behavior dataset
  • INFRASTRUCTURE: Established cloud computing capabilities
  • PILOTS: Successful AI-driven pricing experiments in auto lines
  • LEADERSHIP: Executive buy-in for AI transformation initiatives
  • TALENT: Growing data science team with domain expertise

Weaknesses

  • SILOS: Data fragmentation limiting AI model effectiveness
  • GOVERNANCE: Inconsistent AI model validation processes
  • TOOLING: Limited standardized AI development environment
  • TALENT: Gap in deep learning and advanced AI specialization
  • INTEGRATION: Challenges deploying AI models into production

Opportunities

  • UNDERWRITING: AI-driven underwriting for complex risks
  • CLAIMS: Computer vision for automated damage assessment
  • PERSONALIZATION: Hyper-personalized customer journeys
  • FRAUD: Advanced pattern detection for claims fraud prevention
  • RISK: Real-time risk assessment using IoT and telematics data

Threats

  • BIAS: Algorithmic bias affecting underwriting fairness
  • COMPETITION: InsurTech startups with AI-first approach
  • REGULATION: Increasing scrutiny of AI usage in insurance
  • TRUST: Customer skepticism about AI-driven decisions
  • ADOPTION: Internal resistance to AI-driven workflow changes

Key Priorities

  • PLATFORM: Build unified AI/ML platform with governance
  • TALENT: Accelerate AI expertise acquisition and training
  • AUTOMATION: Prioritize AI for claims processing efficiency
  • ETHICS: Develop robust framework for responsible AI usage