The insurer is specifying that it is the intellectual property and not the software in the program.
In December 2012, Live Insurance News reported that Progressive would be licensing the intellectual property for its usage based insurance program, and that other carriers would start being able to use it as of 2015.
Many have wondered whether the program also includes the software for the UBI coverage.
For this reason, the insurer has issued an additional statement to clarify that it is only the intellectual property relating to the usage based insurance, and not the software or the hardware that is being licensed. This follow-up announcement was issued by the national product development leader for Progressive, Tom Hollyer.
The latest statement about the usage based insurance licensing was meant to provide considerable clarification.
Hollyer made mention of the effort that Progressive has put into its usage based insurance program. The insurer first started its development more than a decade and a half ago, throughout which time it has undergone a considerable evolution. At the moment, the Snapshot UBI program is available in 43 states.
He explained that “We’ve poured years of research into advancing and refining our technology.” Hollyer also mentioned that “We brought Snapshot to the mass market in 2011 and it’s the industry leader in UBI, accounting for over $1 billion in premiums written.”
Along the way, the insurer took careful measures to protect the intellectual property connected to its usage based insurance program, and has secured six different patents. These give the company the ability to take full advantage of its own innovation, said Hollyer, as well as the reward for their efforts and achievements in being first to market.
He revealed that the insurer has always known and said that it would be willing to begin licensing its usage based insurance technology at some point in time. Hollyer then added that he believes that this level of intellectual property and innovation will bring about a significant shift in the way that consumers think about their coverage. Therefore, Progressive feels that this is the ideal time to begin licensing the intellectual property, so that it will be available for other carriers to use in 2015.
