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

Avoiding the Bermuda Triangle of Data

Handled poorly, questions around data ownership, data quality and data security can sidetrack big data conversations and alienate business stakeholders.

Global Supply Chain, Local Problem

As a technology provider, your client’s ability to deliver products and services to their customers, when and where they need them, is at the heart of their business success.

Legacy Systems Are Increasingly a Competitive Handicap

Legacy systems, while reliable, increasingly hold insurers back, a new study finds

Five Reasons to Software-Define Your Operations

It may be possible to provision key services with the click of a mouse, but benefits go well beyond that.

3 Policy Admin Conversion Considerations

Insurers would be wise to learn these lessons before formulating a strategy to convert policies to a new policy administration system.

From Her to Watson, and What’s Next?

Imagine a learning system that can replace the performance of your best employee to provide the same level of support across the organization.