Progressive's Lewis Honored as Insurance Leader of the Year

(BestWire Services Via Thomson Dialog NewsEdge)
About 1,000 insurance professionals gathered at New York's Marriott Marquis hotel to honor Peter B. Lewis, chairman of automobile insurer Progressive Corp., as Insurance Leader of the Year at the annual award dinner.

The award, given by the School of Risk Management at St. John's University, recognizes the contributions of outstanding individuals whose leadership in the worldwide insurance and financial services industry sets them apart from their peers.

In his acceptance speech, Lewis, 72, cited what he called Progressive's "unique culture" of dedicated service in "giving the customer what they need."

Lewis said Progressive's success comes down to five core values -- integrity; the Golden Rule [treat customers as you would want to be treated]; clear objectives; excellence in service; and profit. "Progressive thrives because of its commitment to especially good people who are guided by five clear core values and are measured against unusually high standards. I thrive for the same reasons," he said.

Progressive was formed in 1937 by Joseph Lewis [Peter's father] and Jack Green. The company moved into downtown Cleveland in 1951. With the death of Joseph Lewis in 1955, Green became chief executive and Peter joined the company.

In 1965, Peter Lewis took over as CEO, a position he kept until 2000. Under his watch, the company grew from sales of $6 million to more than $13 billion, becoming the third-largest auto insurer in the United States.

In his speech, Lewis said Progressive has been a success because of a clear vision of what auto insurance should be about. "The purpose of an auto insurer is to reduce the trauma, cost and inconvenience of auto accidents in cost-effective and profitable ways," he said.

Among the innovations Progressive is famous for are 24-hour immediate response claims services; rapid, no-hassle settlements; and mobile adjusters who can respond rapidly to an accident scene.

Progressive has done other things unusual for auto insurers -- it offers free, comparative quotes from other auto insurers, and in 2001, it became the first publicly traded company to announce financial results monthly.

In addition to his work building Progressive, Lewis is known as a generous contributor to education and a patron of the arts. He donated $36 million to Case Western Reserve University's Weatherhead School of Management, and $60 million to his alma mater, Princeton University, to build a science library. He also gave Princeton $55 million to endow the university's Institute for Integrative Genomics.

Lewis donated $62 million to the Solomon R. Guggenheim Museum and $15 million to the American Civil Liberties Union. He serves on the boards of trustees of the Guggenheim and the Cleveland Museum of Art.

This is the 11th year St. John's has presented the award. Last year's recipient was Ace. Ltd. Chairman Brian Duperreault (BestWire, Jan. 28, 2005).

The awards dinner is a scholarship fund-raiser for the St. John's School of Risk Management. This year's event raised $1.49 million, said Ellen Thrower, the school's executive director.

Members of Progressive Insurance Group currently have a Best's Financial Strength Rating of A+ (Superior).