Progressive Corp., the fourth-largest U.S. auto insurer, agreed to license its usage-based pricing technology to United Services Automobile Association.
USAA would pay 0.02 percent of its annual direct written premiums on auto coverage, Mayfield Village, Ohio-based Progressive said today in a statement. USAA, which provides coverage to military members and their families, wrote more than $8 billion in 2012 auto premiums, according to data from the National Association of Insurance Commissioners.
“We’re offering an appropriate means for companies to lease our usage-based insurance,” Erin Hendrick, a Progressive spokeswoman, said in an interview. “We believe the industry can benefit from it.”
Progressive has patented a device that collects driving data and calculates coverage based on a motorist’s habits. The technology accounts for more than $1 billion in Progressive’s premiums, the insurer said.
“This licensing agreement allows us to determine if a comprehensive behavior-based insurance program will benefit our membership,” Rebecca Hirsch, a spokeswoman for San Antonio, Texas-based USAA, said in an e-mail.
USAA can begin using Progressive’s technology in April 2015, according to the statement.
Progressive has filed patent-infringement lawsuits against State Farm Mutual Automobile Insurance Co. and Hartford Financial Services Group Inc. over the vehicle-monitoring technology.
“Hartford denies Progressive’s allegations and intends to defend the lawsuit vigorously,” Hartford spokesman Thomas Hambrick said in response to the suit.
State Farm said in a court filing that it hasn’t infringed on Progressive’s patents.
Was this article valuable?
Here are more articles you may enjoy.
Brookfield Targets Global Dominance in P/C Insurance Coverage 
Owner of Historic Minnesota Resort Charged With Arson, Insurance Fraud 
Dunkin’ Cashier in Georgia, Stabbed by Rapper, Can’t Claim More Than Workers’ Comp 
Death of Teenager on Carnival Cruise Ship Ruled a Homicide 
