Filed Under:Technology, Tech Management

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.

Top Story

Trick or treat: Keeping the goblins safe on Halloween

Halloween poses increased risks for pedestrians and drivers alike.

Top Story

Superstorm Sandy: 2 years later

Many residents on the East Coast are still rebuilding as the insurance industry and FEMA work to pay off claims two years after Superstorm Sandy hit.

More Resources

Comments

eNewsletter Sign Up

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!

Mobile Phone
         
Close

Advertisement. Closing in 15 seconds.