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Progressive Enters UBI Alliance with Zubie

The company is now accepting driving data from the third-party connected car service.

After several years of using its proprietary Snapshot OBD device as the main source of its usage-based insurance data, Progressive is branching out.

The telematics insurance leader has entered into an alliance with Zubie, a connected car platform that uses its own OBD device, to offer the Snapshot discount to users of that service. Because Zubie is already collecting much of the same information that the Snapshot device adds, it's a simple matter of setting up a data exchange, Dave Pratt, GM of usage-based insurance for Progressive, told Insurance & Technology at the Insurance Telematics USA trade show, where the alliance was announced.

"We'd like to find technologies that make it easier for customers to take advantage of Snapshot discounts, rather than making the only model where we mail you a device," Pratt explains.

The discount opportunity is part of Zubie's Perks platform, which offers consumers ways to use their driving data to save money, Ari Silkey of Zubie adds.

"We're monitoring customers driving behavior and their, then giving them discount options," he explains. "For example, if your battery voltage is low we can serve you an offer for a new battery."

This alliance and others like it give Progressive the opportunity to reach customers who may be intrigued by usage-based insurance, but don't see themselves as in the market for a new insurance provider, Pratt says.

"More than a third of people who shop with us direct now buy Snapshot," but this helps reach a new customer segment, he says.

[Progressive on big data]

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio

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