Progressive Insurance, which owns six usage-based insurance (UBI) patents in the United States, announced that it will license that UBI-related intellectual property.
The company said licenses will be subject to the following terms:
As INN has reported, one in five insurance company professionals predict usage-based insurance UBI will capture more than 50 percent of the personal auto insurance market by the year 2020, according to “Telematics/Usage-Based Insurance: A Catalyst for Change,” a research paper from Strategy Meets Action.
“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.
According to a 15-year study of five billion real-time driving miles, driving behavior has more than twice the predictive power of any other insurance rating factor, Progressive has said.
UBI accounts for more than $1 billion in auto insurance premiums for Progressive, which has UBI programs available in 43 states and the District of Columbia.
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