Progressive®
Insurance today announced a licensing program for intellectual
property related to usage-based car
insurance programs.
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.
About Progressive
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 (NYSE:PGR).
