CNA and Progressive Team Up in Alternative Auto Insurance Market

CNA says it has entered an agreement with Progressive to allow its personal insurance business unit, using the independent agency system, to market personal auto insurance to large employer groups and association-based groups, a rapidly expanding market.

Using Progressive's products and rating structures, CNA Personal Insurance expects to quickly gain presence in a market that it characterizes as alternative distribution, helping the company and its agents to achieve growth and profit goals.

Through the jointly managed arrangement, CNA says it adds the capability of offering personal auto insurance for all drivers—from non-standard through ultra-preferred—while assuming a majority of the underwriting risk. CNA provides agents with turnkey programs for employer groups of 1,000 or more and affinity groups of 50,000 or more.

"Progressive gives CNA the capability to bring added value to our agents by offering a strong new business opportunity," says Ernest A. Lausier, president and chief operating officer of CNA Personal Insurance. "We will look for our agents to bring their employer and affinity groups to us, which we will serve on a turnkey basis. This arrangement will allow us to attract a broader array of accounts and better serve the needs of consumers.

"This agreement gets us to market much quicker," he adds.

Dave Roush, president of Progressive's National Accounts Division says the joint underwriting agreement with CNA expands his company's strategy of partnering with insurance companies to provide additional products and services to their customers.