Enterprising Developments

Progressive Phones Home

Joe McKendrick
Insurance Experts' Forum, February 17, 2011

In last week's post, we explored the emerging practice of “vehicle telematics,” in which policyholders agree to have on-board devices mounted in their cars in exchange for reductions in their premiums.

Now, at least one major auto insurance carrier, Progressive, announced it is putting vehicles telematics into practice within a major market. The company extended its program that allows it to electronically track their driving habits to policyholders in Florida—the largest offering to date for this approach. After drivers sign up for Progressive's “Snapshot” program, the company sends them a palm-size device that plugs into the on-board diagnostic (OBD) port of their car. The device records and sends the driving data to Progressive.

Progressive says that after 30 days, customers will find out if they're eligible for a discount—up to 30%—based on their driving habits, and will see that discount applied to their policy.

People who drive less, in safer ways and during safer times of day are more likely to get a discount. At the end of the six-month policy term, Progressive determines the renewal discount and the customer returns the device. The device doesn't track vehicles' locations via GPS—only how, how much and when customers drive their vehicles. 

Richard Hutchinson, Progressive's general manager for usage-based insurance, was interviewed in the St. Petersburg Times on the announcement.

 

Joe McKendrick is an author, consultant, blogger and frequent INN contributor specializing in information technology.

Readers are encouraged to respond to Joe using the “Add Your Comments” box below. He can also be reached at joe@mckendrickresearch.com.

This blog was exclusively written for Insurance Networking News. It may not be reposted or reused without permission from Insurance Networking News.

The opinions of bloggers on www.insurancenetworking.com do not necessarily reflect those of Insurance Networking News.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

Core Transformation – Configuring in the Rain

The whole point of core transformation is that changes at the micro level can be used as a stimulus for changes at the macro level.

6 Ways to Develop a Productive IT-Business Dialog

Relationship management 101 for keeping IT and business on the same page.

Agile and Continuous Delivery in a Regulated Environment

Just because a development team is doing continuous delivery or packaging releases into two-week sprints doesn’t mean that code is being moved to production.

Unified Digital Strategy: Succeeding in the Digital Revolution

A unified digital strategy recognizes that all business strategies and technologies touch the customer in some way and that a one-size-fits-all channel model is obsolete.

Dealing with the COBOL Brain Drain

Documentation on aging systems often is akin to tribal knowledge, and the potential for things to go bump in the night increases as these environments face generational transition.

Enterprise Insight at Insurers’ Fingertips

Insurers are caught in a complexity predicament because of frequent mergers and acquisitions, expanded product and service offerings and more stringent regulations.