Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024

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3. The Progressive Corporation (NYSE:PGR)

Number of Hedge Fund Holders: 95

Cramer called The Progressive Corporation (NYSE:PGR) a winner and commented:

“Next we have Progressive. Now it’s up 60%. This auto insurer is known to use more AI in pricing than any other company… The insurance business is on fire and we know from these egregious CPI numbers, one comes out this Wednesday, they just keep raising rates. These three are winners for certain.”

Progressive (NYSE:PGR) is an insurance holding company that provides a range of personal and commercial property-casualty insurance products, including auto, residential, and business-related coverage. It has been at the forefront of technological innovation in the insurance industry, particularly with the use of telematics. The company was one of the early adopters of using driver data, such as mileage, speed, and braking patterns, to personalize insurance rates for individual drivers.

As per Barron’s, Cathy Seifert from CFRA Research highlighted that the company’s AI capabilities are ahead of the curve, which is evident from the company’s early use of artificial intelligence. In 2017, well before the rise of AI models like ChatGPT, it introduced a chatbot version of Flo, designed to assist customers with AI-enhanced quoting technology.

Josh Shanker, a senior insurance analyst at Bank of America, added that although large language models are a newer development, the company has been using AI techniques for decades, particularly in pricing insurance by crunching data, making the company more advanced than its competitors in this regard.

During its third-quarter earnings call, Progressive (NYSE:PGR) management revealed that it has been utilizing AI in its call centers for over ten years. The company implemented a chatbot to handle repetitive inquiries, reducing call volume by approximately 15%. On the claims side, it also utilizes automation for estimates, having tagged millions of images to facilitate this process.

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