How did it impact you guys at IAA?

Well, I think we were caught off guard. We had good relationships at the highest levels and operated with the same old approach. We made some tweaks here and there, but it was largely the same things we had been doing for a long time. While Allstate, State Farm, and others were losing share, USAA was improving. USAA started adapting policies and procedures like Progressive and GEICO. Liberty Mutual was also starting to take off and do the same thing. These companies were changing, and we weren't changing as fast as they were.

Can you share some anecdotes or tangible examples to help me understand what it would look like for IAA to work with legacy insurers versus this new breed, like GEICO 2.0 and Progressive?

State Farm and similar organizations weren't worried about every aspect of their business because they had calculations on total loss that assumed a certain percentage loss. They didn't care if they recouped all the money because they assumed a certain loss percentage. However, the new breed [GEICO and Progressive] was focused on each business unit. I was shocked because our space was always an afterthought for insurance companies. Their goal was to save money. My biggest anecdote is how they were hyper-focused on not spending as much money as before and prided themselves on that, as much as they did on customer acquisition cost. Progressive and GEICO, when a claim is filed, keep customers. That customer is more likely to reinsure with them on a new vehicle than with State Farm or Allstate.