Progressive packs south

A month after Progressive announced its intention to pull out of the Canadian marketplace, its general manager continues to insist the withdrawal had nothing to with Canada’s insurance environment.

Chip Conner, Progressive general manager, says industry speculation that the company was burned by an early year foray into the Alberta market is unfounded. “We’ve actually been delighted with the response that we have received in Alberta and for the past seventeen years in Ontario.”

He admits the move was bound to create speculation. “It would be wrong for me to say there has been a master plan for the move for years, or that Progressive woke up one morning and decided to leave Canada. [The move] is part of our normal weighing of human resource, capital and marketing resources in deciding where best to pursue our business interests.”

The U.S. insurer, which had been in Ontario since 1982 and Alberta since early 1999, decided to focus on the U.S. market because of its higher exposure there, Conner remarks. “Most of our infrastructure was built to support U.S. regulation and reporting. So, while we find Canadian consumers very accommodating, growth opportunities for us are better in the U.S.”

Progressive has ceased new business applications in Canada and will not renew current policyholders at policy expiry. The company will not, however, withdraw immediately from Canada, retaining more than 120 employees to service policyholders.