Progressive Insurance and United Services Automobile Association (USAA) Enter License Agreement for Usage-Based Insurance
MAYFIELD VILLAGE, Ohio--(BUSINESS WIRE)-- Progressive® Insurance is entering into a licensing agreement with United Services Automobile Association (USAA) for intellectual property related to usage-based car insurance programs.
Progressive leads the industry with six usage-based insurance (UBI) U.S. patents and more than one million users to date. Its current implementation of UBI, Snapshot®, accounts for more than $1 billion in premiums and is currently available in 44 states and the District of Columbia.
"We have found that key driving behaviors predict the likelihood of a claim far better than traditional insurance rating variables alone," said John Sauerland, Progressive Personal Lines Group President. "As insurers realize the benefits UBI offers consumers, it's critical they deliver programs that reflect responsible intellectual property practices, which includes licensing the appropriate IP."
Progressive announced its licensing program in December 2012, making its intellectual property 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.
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.
The Progressive Group of Insurance Companies 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 also offers insurance for personal and commercial autos and trucks, motorcycles, boats and recreational vehicles, as well as home insurance from select carriers. 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.
The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, trade publicly at (NYS: PGR) .
Erin Hendrick, 440-395-0454
KEYWORDS: United States North America Ohio
The article Progressive Insurance and United Services Automobile Association (USAA) Enter License Agreement for Usage-Based Insurance originally appeared on Fool.com.
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