Progressive Announces Plans for Licensing UBI Program to Competition

Progressive Insurance announces a licensing program for intellectual property related to usage-based automobile insurance programs.

“We have been developing and refining our industry-leading UBI program for more than 15 years and have been awarded six patents for good reason,” says Glenn Renwick, Progressive’s president and CEO. “We previously stated our intentions to license our UBI intellectual property, and today we offer further details of our offer. We invite other companies to license our intellectual property. In the meantime, we will continue to defend our patent-protected technology rights.”

Progressive’s current application of usage-based insurance (UBI) accounts for more than $1 billion in premiums and is currently available in 43 states and the District of Columbia. The insurer is making the intellectual property it owns available to companies interested in implementing UBI programs, subject to the following terms:

  • Term of Agreement: Commences the date license is executed through April 2022
  • Waiting Period: Licensees will not rate insurance based on its customers’ driving habits prior to April 1, 2015
  • Licensing Fee: Annual royalty payment equal to licensee’s countrywide Private Passenger Auto insurance direct written premiums for the most recently reported year, multiplied by two basis points (0.02 percent)
  • Progressive also has the right to licensor recognition

Application for Licensing under these terms is open through June 2013, with payments commencing with usage on or after April, 2015.

Comments

Resource Center

View All »

Making Coverage Letters Work for Your Clients

If you're a broker or insurance buyer with any length of service in the commercial...

Complimentary White Paper: The Compression of Workplace Time

How brokers and carriers respond to the compression of workplace time will create significant competitive...

The Changing Insurance Consumer: 6 Ways to Create Profitable Relationships

Today’s mobile and web-savvy consumers have new expectations when it comes to interacting with your...

Contractors General Liability Coverage 102

What is a prior work exclusion? Which option is right for my client? Why do...

Sign up today to get a 50% matching credit -...

Insurance marketing sometimes seems like it's a game of swings and misses, but we're here...

Guide: 5 Steps to Selling Cyber

Cyber risk and data security is on the agenda of every business owner and executive....

Citation Correlation

Do rigger and signalperson qualifications correlate with the cause of crane and rigging accidents? ...

Complete Guide to Electronic Signatures in Property & Casualty Insurance...

In property and casualty insurance, closing new business quickly is key. Learn how to leverage...

INSTANT ACCESS: Complimentary Sales Closer Questionnaires

Help property owners or managers compare your commercial residential property insurance coverage vs. the competition....

Determining Vacant Property Perils and Valuations

Are your clients fully covered for Vacant Properties? In this economic climate, your insureds may...

Tech Digest eNewsletter

Technology related insights for insurance professionals including key developments, solution providers and news briefs from the carrier front – FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.