Progressive Announces Terms for Usage-Based Insurance Licensing Program
The company leads the usage-based insurance category and currently holds six usage-based insurance U.S. patents. Its 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.
Progressive 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.
"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," said 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."
Companies interested in Progressive's UBI licensing program can contact Mark Connelly at Mark_Connelly@Progressive.com for more information as well as detailed terms and conditions.
Celebrating its 75th anniversary in 2012, The Progressive Group of Insurance Companies (collectively, "Progressive Insurance") makes it easy to understand, buy, and use auto insurance. Progressive offers choices so consumers can reach it whenever, wherever, and however it's most convenient—online at progressive.com, by phone at 1-800-PROGRESSIVE, on a mobile device or in-person with a local agent.
Progressive offers insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes. It's the fourth largest auto insurer in the country, the largest seller of motorcycle insurance, and a leader in commercial auto insurance. Progressive also offers car insurance online in Australia at http://www.progressiveonline.com.au.
Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price®, the Snapshot Discount®, and a concierge level of claims service.
The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, trade publicly at (NYS: PGR) .
Erin Hendrick, 440-395-0454
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The article Progressive Announces Terms for Usage-Based Insurance Licensing Program originally appeared on Fool.com.