Progressive

“We have developed, and used for many years, new technologies, including machine learning and other forms of artificial intelligence (AI), predictive models, algorithms and automated processes, and will in the future develop and use AI and other new technologies in our business.”

“We started with machine learning and large language models probably over a decade ago, and we put a lot of those into place. Think of like we have a chatbot that can give you documents without having a human involved. We've continued on those.”

“Right now, we have well over 100 different models in different formats. Some are tests, some are full bore, and some are thoughts, including many in generative AI.”

“We did an entire several-day session with our board of directors a few months ago on all that we're doing in AI. And I got to tell you, it's pretty exciting. And it's exciting because of the efficiencies we're going to get.”

“These new tools also empower our employees with a new text and email communication platform, which includes a customer-facing generative AI assistant for automated tasks, information retrieval, and tailored follow-up actions. We believe these investments enhance both the customer and employee experience, while increasing efficiency.”

“We're gonna, you know, we're gonna have business models, rigorous controls, and we're gonna continue to invest in this, and we're gonna continue to lean into now gen AI. We recently formed an AI Strategy Council, while we're working on sort of the next year and here's where we're at and working with vendors and making sure that we're testing things to make sure it's a really fluid process,”

“We've talked, I think, a little bit over the last year or 2 years, maybe even longer, on what we've worked on in predictive AI. A lot of models using unstructured data, voice data to trigger models, and we'll continue to do that.”

“They include chatbots and of course we've had predictive AI in our world for some time now as well on, say like things like progressive.com to make decisions on a package that's good for you. We've now turned to GenAI and agentic AI in many areas of our business.”

“I'd say that we have about a dozen, or dozens I should say, of advanced AI initiatives that are producing meaningful. We'll put some dollars to that at some point in the future, but meaningful results and an exciting pipeline of future initiatives.”

“We'll share more of that. I don't want to make headlines that are out there. I could give you numbers now, but I think they're not as complete as I'd like them to be. Rest assured, we're doing a lot in this area. I feel really comfortable with what we're investing and the returns we're getting to date.”

“I think I talked before that about six months ago or so, we formed an AI strategy council. We'd had an AI council. We had had a strategy council. That's why we thought that it would be good to have an AI council.”

“Of course, a little while ago, about a month ago, we added our first Chief Strategy Officer. He works hand in glove with our Chief Technology Officer. You think of the business side of AI and the technology side of AI, and they're helping manage it across the enterprise so we know what our right hand knows what our left hand's doing.”

“We have developed, and used for many years, new technologies, including machine learning and other forms of artificial intelligence (AI), predictive models, algorithms and automated processes, and will in the future develop and use AI and other new technologies in our business.”

“We're constantly investing to push down both loss adjustment expense and non-acquisition expense, figuring out ways with technology, with people, with processes to reduce those expenses because we can give those back in competitive prices, and that's really important.”

“We did an entire several-day session with our board of directors a few months ago on all that we're doing in AI. And I got to tell you, it's pretty exciting. And it's exciting because of the efficiencies we're going to get.”

“Our employees handle nearly all of our Personal Lines vehicle and Commercial Lines claims from either physical claims offices throughout the U.S. or through a virtual environment, and are supported by centralized functions at our corporate offices and a nationwide network of about 3,700 third-party repair shops.”

“These new tools also empower our employees with a new text and email communication platform, which includes a customer-facing generative AI assistant for automated tasks, information retrieval, and tailored follow-up actions. We believe these investments enhance both the customer and employee experience, while increasing efficiency.”

“In our claims organization, in 2025 we implemented a comprehensive set of digital capabilities aimed at modernizing the claims experience and enabling customers to interact when, where, and how they choose. Customers now have digital options starting at the first notice of loss, throughout the investigation, damage assessment, and repair processes.”

“We've talked, I think, a little bit over the last year or 2 years, maybe even longer, on what we've worked on in predictive AI. A lot of models using unstructured data, voice data to trigger models, and we'll continue to do that.”

“As with past innovations, I'm confident we will be a leader in our execution, and we'll do it responsibly. That's where we're at. You know, we are getting. You're seeing efficiencies when you look at our data, and I think that will continue.”

“They include chatbots and of course we've had predictive AI in our world for some time now as well on, say like things like progressive.com to make decisions on a package that's good for you. We've now turned to GenAI and agentic AI in many areas of our business.”

“I'd say that we have about a dozen, or dozens I should say, of advanced AI initiatives that are producing meaningful. We'll put some dollars to that at some point in the future, but meaningful results and an exciting pipeline of future initiatives.”

“In terms of probably the first foray that you're going to see with most companies with AI is going to be more of a cost reduction. I think it'd be more on the LAE side and the expense ratio side. As we get further and further into our AI initiatives, I think it could hit more on loss cost, depending on what route we go.”

“We'll share more of that. I don't want to make headlines that are out there. I could give you numbers now, but I think they're not as complete as I'd like them to be. Rest assured, we're doing a lot in this area. I feel really comfortable with what we're investing and the returns we're getting to date.”

“Our total loss and LAE ratio increased 0.6 points and 0.4 points, for the three and six months ended June 30, 2026, respectively, compared to the same periods last year, primarily due to higher severity, partially offset by greater favorable prior accident years reserve development.”

“We have developed, and used for many years, new technologies, including machine learning and other forms of artificial intelligence (AI), predictive models, algorithms and automated processes, and will in the future develop and use AI and other new technologies in our business.”

“We're constantly investing to push down both loss adjustment expense and non-acquisition expense, figuring out ways with technology, with people, with processes to reduce those expenses because we can give those back in competitive prices, and that's really important.”

“We started with machine learning and large language models probably over a decade ago, and we put a lot of those into place. Think of like we have a chatbot that can give you documents without having a human involved. We've continued on those.”

“We did an entire several-day session with our board of directors a few months ago on all that we're doing in AI. And I got to tell you, it's pretty exciting. And it's exciting because of the efficiencies we're going to get.”

“In 2024, our NAER decreased 0.4 points and 0.6 points in our personal vehicle and core commercial auto businesses, respectively, compared to 2023, and increased 0.3 points in our personal property business.”

“I'd just add that we have continued to make progress on our non-acquisition expense ratio, and we've been doing so over at least the past decade. So structurally, as you say, as we increase average premium, not only the efficiencies we plow into our business, but the denominator is a tailwind for sure.”

“3 Primarily consists of employee compensation and benefit costs, and the increase in the allowance for credit loss exposure on our premiums receivable.”

“As with past innovations, I'm confident we will be a leader in our execution, and we'll do it responsibly. That's where we're at. You know, we are getting. You're seeing efficiencies when you look at our data, and I think that will continue.”

“They include chatbots and of course we've had predictive AI in our world for some time now as well on, say like things like progressive.com to make decisions on a package that's good for you. We've now turned to GenAI and agentic AI in many areas of our business.”

“I'd say that we have about a dozen, or dozens I should say, of advanced AI initiatives that are producing meaningful. We'll put some dollars to that at some point in the future, but meaningful results and an exciting pipeline of future initiatives.”

“In terms of probably the first foray that you're going to see with most companies with AI is going to be more of a cost reduction. I think it'd be more on the LAE side and the expense ratio side. As we get further and further into our AI initiatives, I think it could hit more on loss cost, depending on what route we go.”

“We'll share more of that. I don't want to make headlines that are out there. I could give you numbers now, but I think they're not as complete as I'd like them to be. Rest assured, we're doing a lot in this area. I feel really comfortable with what we're investing and the returns we're getting to date.”

“For the second quarter 2026, our NAER was flat in our personal vehicle business compared to the same period last year, while increasing 1.5 points in personal property and 1.1 points in core commercial auto.”

“For the second quarter and first half of 2026, our underwriting expense ratio increased 0.5 points and 0.4 points, respectively, compared to the same periods last year. The increase was primarily attributable to higher advertising spend.”

“As always, we remain focused on expense discipline and operational efficiencies, delivering a 0.2 point improvement in the Personal Lines vehicle (personal auto and special lines) non-acquisition expense ratio (NAER) YTD versus the same period in the prior year.”

“In fact, we have a board meeting this week, and we're going to go over some AI tests in media that have proven to be really successful.”

“I did talk in my letter about a marketing commercial that we did called Drive Like an Animal. That was all AI-generated with the exception of Flo's voice, and we did that in so much less time than a regular commercial and so much less money, and more importantly, it worked.”

“We continued to push creative boundaries by producing our first AI-generated TV ad.”

“We complemented these proven strategies by embracing innovation, notably through the integration of artificial intelligence, which enabled greater efficiency and unlocked new creative opportunities.”

“The spot helped us learn how to use new creative tools more effectively while gaining several efficiencies and keeping our very talented creative teams at the forefront of innovation.”