Progressive Announces Terms for Usage-Based Insurance Licensing Program
MAYFIELD VILLAGE, Ohio -- December 20, 2012
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
*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 75^th 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).
Erin Hendrick, 440-395-0454
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