Business Case Studies & Business Publications

Progressive Patents for Usage-Based Insu...

Doyle, Jacqueline ...

Case

Progressive Patents for Usage-Based Insurance

Doyle, Jacqueline L.; Ziegler, John S.

OM-1578 | Published July 13, 2017 | 2 pages Case

Collection: Darden School of Business

Add To Cart Buy Now

Product Details

The material in this case presents Progressive Insurance as it faced important decisions regarding how to proceed with its usage-based insurance (UBI) initiatives, including the Snapshot device and related patents. Progressive had a head start on its competitors employing UBI pricing, but several competing insurance companies had been testing the waters with their own UBI products. In the case, Progressive considers a number of alternative uses of its patents for students to address.

This case introduces strategic trade-offs of patent deployment, and allows exploration of general pricing evolution as markets develop. Students are asked to take ownership and make decisions from a general management perspective. They must identify the most important strategic and economic drivers in a competitive and changing landscape, and recognize the value of anticipating how other key players outside Progressive might respond. The case does not have a clear "right" answer, which encourages strong discussion and debate, and requires critical thinking regarding how a broad set of issues may best be addressed together. The case presents concepts only; no math is required. Students will also see that certain approaches may need to change over time as the market develops. A better approach in the beginning may lead to trouble over time if not altered.