Telematics/Usage-Based Insurance: Progressive’s Licensing Announcement

An SMA Research Brief

Mark A. Breading, Senior Partner
Richard Welch, Guest Author
Publication Date:
February 26, 2013
Number of Pages:
$995.00 USD

This research brief, the third in SMA’s Telematics/Usage-Based Insurance Series, presents SMA’s insights on the recent licensing announcement by Progressive Insurance. The report recaps Progressive’s announcement, discusses implications for insurers, and predicts market reaction.

Summary of Insights:

For those companies that are not already actively involved in some stage of a usage-based insurance (UBI) program, Progressive’s announcement provides some clarification for licensing its UBI intellectual property, and establishes a new starting point for programs that are already in process. SMA’s report provides commentary on the licensing provisions, which will supply some answers to market speculation, while suggesting other specific issues and questions that will need to be addressed. Perhaps the most time sensitive issue is that Progressive’s current offer of terms is available only to companies that apply through June of 2013, which may create an urgency among some insurers to readjust their timetables.