Responding to the growth of e business

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Direct Response Corporation which is the holding company to the Response Insurance Group of companies was formed in 1996. They were headquartered in Meriden, CT and have offices in Suisun city as well. The main driving forces for the Response Insurance Group of company are James M. Stone and British insurance pioneer Peter J. Wood. James is a former Massachusetts Insurance Commissioner and also the founder of Plymouth Rock Assurance. The 'red telephone on wheels' icon is used in order to represent the friendly accessibility of a direct-to-the-customer auto insurance company. In April 1996, Morgan Stanley Capital Partners and other investors made their first of several contributions of $315 million to the Company to create a national direct-to-the-customer auto insurance company. The main focus of the Company is to offer 'low cost insurance' to people. Response Insurance Company is licensed in more than 45 states and serves as policyholders in more than 40 states. Response Insurance Group has been ranked above most of the large insurers by Connecticut Insurance Department for more than six years.

Business Model & Market Strategy

Response Insurance Company doubled its size by Acquisition Of Worldwide Insurance Companies. They have a commitment to continuous growth and genuine confidence. The Company is known for its low rates and great customer service. They always reinvent their service in order to increase customer satisfaction and reduce the cost at which they offer their services. They rolled for national direct response campaign which employs technology to link callers directly to their local insurance agents. Response Insurance Company believes in satisfying the customer as early as possible by providing them with very fast and proper service. Response Insurance believes that customers are their most valuable assets and they value their relationship with their customers. They provide different services and insurance products to meet the needs of the customers. Their customer service representatives make sure that all the queries of the customers get cleared but also provide special discounts to the regular customers. Response Insurance Company provides an excellent 24 hrs customer service with very good financial backing. Safe and responsible drivers are given the priority for insuring and special discounts are provided to the customers on direct purchase. They have a very well established coverage area around the world.

Revenue Model

Response Insurance Company is a Mutual type of Insurance Company. The Company financial status can be examined by finding the value of their assets which is around $50-100 million (per A.M. Best). Response Insurance Company has more than 100,000 in-force policies in 44 states which make this company among the 15 largest direct auto insurers in the nation and it is also among the 100 largest auto insurers. The net written premium of Response Insurance Company is more than $125 million. The Composite value of the Assets according to the Asset Management is 811.30. Response Insurance is a member of the Unitrin family of companies which is a financial services company with $2.4 billion in annual premium revenues and assets worth nearly $9 billion.

Market Place

The first national headquarters of Response Insurance Company was in White Plains, NY and then relocated in Meriden, Connecticut in 2003. There are around 400 employees working in Response Insurance Company. It has offices also in Suisun City, CA & Melville, NY. Response Insurance also has a office in Bellevue, WA and a call center in St. Louis, MO. Policies of Response Insurance Company are underwritten by the many members of the Response Insurance Group of Companies namely Connecticut Life & Casualty Insurance Company, Response Indemnity Company, Response Insurance Company, Response Worldwide Direct Auto Insurance Company, & Response Worldwide Insurance Company.

Top Competitors

The main competitors of Response Insurance Company are "The Allstate Corporation (all)", "The Progress Corporation (pgr)" and "State Farm Mutual Automobile Insurance Company". Competition has increased to a great extent since the fall of the barriers between the banking, securities, and insurance industries. State Farm is the #1 provider of auto insurance and home insurer. The overall revenue for State Farm for the 2008 was 61300M which dipped down by 0.50%. There are around 68,600 employees working in the State Farm Company. The Allstate Corporation (all) is the second-largest personal lines insurer in the U.S. just behind the rival State Farm. The Revenue of Allstate Corporation for the year 2009 was 32013 M. It is growing at the rate of 8.90%. There are around 36,800 employees working in the Allstate Corporation. The Progressive Corporation markets directly to customers online and by phone along with around 30,000 independent agents which accounts for roughly 60% of their business. The revenue of Progressive Corporation for the year of 2009 was 14563.60M which is growing at an alarming rate of 13.40%. There are around 25,000 employees working who are responsible for this tremendous growth of the Company.

Comparative Advantage

Response Insurance Company provides an excellent 24hrs customer service. There have been cases where the adjuster for the claim reached the customers within 2days. Drivers who are safe and responsible are given priority for insuring. On direct purchase, the customers are provided with special discounts as well. Response Insurance Company provides one of the cheapest most affordable auto insurance policies.

Overall, how satisfied are you, with Response insurance company?

How likely are you to renew your insurance policy/policies with Response insurance company?

Overall, how satisfied are you, with State Farm Insurance?

How likely are you to renew your insurance policy/policies with this insurance company?

Management Team & Organization Structure

The CEO and the President of the holding company of Response Insurance Company i.e. the Direct Response Corporation is Mory Katz who joined Response Insurance in 1998. Mory Katz came from Trans Union Corporation. The executive Vice President of Response Insurance is Leonard N. Samson who joined Response Corporation in April 2005. The EVP and COO of Response Insurance Company is John Ammendola. The Vice President of the Finance department of Direct Response Corporation and subsidiary companies is George Kowalsky who joined Response in September 2000. Mr. Kowalsky was with Reliance National for almost 12 yrs. Other important staff members of Response Insurance Company are Steven B. Oakley (Vice President of Business Development & Marketing), Frank M. Quido (Vice President of Information Technology), Kathleen A. Gleeson (Vice President of Custom service & sales), Danny Collins (Vice President of Claims Operation) and Clifford Wess (Vice President & Chief Actuary).

Organization Structure refers to the established and formal pattern of relationships amongst the various parts of the Organization.

Out of the different communities in which Response Insurance operates, it has shown its responsibility and commitment towards the nonprofit and charitable organizations. Every year, they donate money to these organizations. Mory Katz is the head of the Organization who has the final authority in making all the important decisions about the Organization. Then comes the executive Vice President and the Vice Presidents of various departments like Finance, Custom service, Claims Operations and Information Technology who also have a saying in the decision making process of the organization.

Conclusion

There are many choices when it comes to auto insurance but if a customer or a safe, responsible driver wants great service, professionalism at very low rates then the answer is Response Insurance Company. Response Insurance Company is not very old as compared to its competitors like All State Farm Company, but still has come a long way from where it started. They give high priority to user convenience and user satisfaction. Website's user friendliness and

Simplicity is also a very attractive feature. The important tips for the drivers give it an added advantage over others. Response.com may completely redefine the online Auto Insurance market. Response Insurance Company is truly the "Safe Choice for Savings".

Appendix

Home page of response.com

Process to get Free Quotes

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