U.K.-based Norwich Union announced its "Pay As You Drive" program in February 2002, shortly after the company received exclusive rights to U.S.-based Progressive Casualty Insurance Co.'s patented method of determining auto rates based on when, where and how a person drives.With a team of approximately 100 people from Norwich Union and its vendor companies developing the telematic devices, the infrastructure, and the interfaces to Norwich's back-end systems, the company had expected its pilot program to begin last summer.

But launch was delayed to this summer. "Things have taken a bit longer than anticipated. But that's the nature of an R&D project," says Robert Ledger, program director at Norwich Union, which is part of London-based Aviva.

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