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.