Progressive's wireless success.

"Progressive" isn't just a name. Progressive Insurance already has one of the best customer-facing Web systems in the industry, and now it's setting a new standard with wireless claims processing.

With more than 2,200 Immediate Response Vehicles (IRVs) on the road nation-wide (those white vans you see on the highways with Progressive painted on the side), being dispatched to accidents, garages, and salvage yards, Progressive had to reinvent the claims dispatching process. The solution was to enable each vehicle with a wireless laptop and digital camera. Now, the IRVs can respond to any accident within moments of a customer phoning in the first notice of loss. The IRVs are constantly on the road looking for accidents. Some IRVs will stop at accidents without being dispatched to see if a Progressive customer is involved. In fact, Progressive has shown up at the accident scene, processed the claim form and handed the insured a check all right at the crash site.

Progressive's vision was to collapse the cycle time for claims processing by going right to the vehicle to process the claim (figure 2). This works to Progressive's advantage because it reduces exposure to litigation, its Loss Adjustment Expense, and the length of time its clients are forced to rent a car.

[FIGURE 2 OMITTED]

Progressive's use of mobile technology has greatly increased productivity by reducing drive time and eliminating steps in the communication and documentation processes.

How does it work?

Progressive developed a proprietary mainframe system its employees can access through wireless Panasonic Toughbook CF71 laptops. The Panasonic laptops come ruggedized with built-in, integrated wireless capability (a key feature). The primary application deployed on the laptops is claims estimating, mainly used for settling claims.

Originally, Progressive deployed Hewlett-Packard laptops, then switched to Dell. Finally, Progressive switched to Panasonic semi-ruggedized laptops for their reliability and durability. Although US$4,000 per unit, the added reliability is well worth the cost. The integrated wireless feature is easy to use and more reliable than traditional add-on equipment.

UpShot: Progressive's wireless advantage:

* Field adjusters are more productive

* First notice of loss is processed more quickly

* Cycle time is shorter, reducing exposure to litigation

Don Lykins is CTO of Portalsoft Solutions, an e-solutions company in Cincinnati, providing customer-focused e-business solutions to global companies. Don spent several years as the enterprise application architect at AFG, Inc., most recently as vice president. At AFG he developed the application strategy for the enterprise, focusing on n-tier, component-based, B2B architectures and became the EAI, XML, and modeling evangelist. Don speaks at many national events introducing innovative use of technology to solve complex problems. He co authored Building Enterprise Solutions with Visual Studio 6, previewed in UNIX Computer Telephony, and has contributed to many magazine and newspaper articles. He has a bachelor's degree in electrical engineering technology from the University of Cincinnati, and an MBA from the University of Dallas. http://www.psoftinc.com, [e-mail].