Competitive analysis of Geico and Liberty Mutual auto insurance

¶ … Liberty Mutual.

Evaluate their product mix, features, prices, distribution and financial performance information

• Identify 2 strengths and two weaknesses for each brand

• Recommend at least two ways that Liberty Mutual can improve sales and profitability for its car insurance business.

Please could you add another weakness for Geico

Expand more in Liberty Mutual

Add and compare prices for both.

And include features

Auto insurance isn't the easiest thing to understand and when choosing which insurance to go to, it is hard to find which company is best suited for you. Geico and Liberty Mutual are two of the biggest names in insurance. Both companies are widely trusted. In order for one to pick an insurance to go with you must evaluate their features, product mix, discounts, services and customer rating that benefits and matters most to you.

Liberty Mutual

Liberty Mutual was founded in Boston in 1912 Liberty Mutual. They are known to provide broad, useful and competitively-priced insurance products and services. This insurance company has a widespread presence and services 900 locations across 5 continents. However, it can be a costly option for customers, relative to other companies.

Liberty Mutual's operating principles that help create a successful workplace

1. Behave with integrity

2. Treat people with dignity and respect

3. Attract, Develop and engage talent

4. Deliver an exceptional customer service

5. Continuously improve and innovate

6. Execute thoroughly and seek excellence

Strengths

• High service quality leading to a helpful customer service

• It has a strong financial background therefore it provides stability

Weaknesses

• Expensive car insurance costs

• They need to expand their commercial market

• Uncoordinated communication between reps, leading to unintentional rate increases.

Recommend at least two ways that Liberty Mutual can improve sales and profitability for its car insurance business.

Liberty Mutual has a lack of scale; it's cost per unit of output is very high. Increasing the volume and maintaining quality, would help reduce the cost as there are many other competitive car insurance companies with much lower prices.

By lowering the prices, Liberty Mutual will do a lot better in the middle market. Further, Liberty Mutual could create new services and expand their commercial market to better meet the customers needs, by doing this it could expand their business and diversify their customer base.

Comparisons -- Geico vs. Liberty Mutual

-Liberty Mutual offers 24-hour roadside assistance but only with the purchase of towing coverage

-Geico has a mobile app for 24-hour road service; it comes with the basic cost of insurance

-Both Geico and Liberty Mutual have offices, but Geico has only 150 and Liberty Mutual has 10,000

-Geico has been known to suddenly increase rates, with no advance notice

-Liberty Mutual's rates are higher than Geico, and there are instances of uncoordinated

communication between representatives which can lead to disorganized claims processes

-Geico has a A.M. Best rating of A++ and Liberty Mutual's rating is A+ (J.D. Power)

-As a general rule (based on surveys) Geico is considered quicker when responding to problems

-According to J.D. Power, Geico is in a tie for 3rd in customer satisfaction in the Mid-Atlantic

states and tied for number one in New York State; Liberty Mutual is in a tie for second in the Southwest,