Does Tripsense Make Sense?

4 Pages Posted: 16 Jun 2009

See all articles by Paul Farris

Paul Farris

University of Virginia - Darden School of Business

Ian Skurnik

University of Virginia - Darden School of Business

Alan Zimmerman

City University of New York/College of Staten Island

Abstract

This case prompts students to determine how Progressive Insurance can best assess the customer interest, technical feasibility, economic viability, and actuarial justification of TripSense, its usage-based pricing program.

Excerpt

UVA-M-0757

March 5, 2009

DOES TRIPSENSE MAKE SENSE?

“Drive less, pay less—that's the simple concept behind TripSense.”

—Progressive Corporation, August 8, 2004

The concept behind Progressive Corporation's usage-based premium discount program may have been simple, but the issues that Progressive wrestled with in developing and testing that program were surprisingly complex.

. . .

Keywords: pricing structure

Suggested Citation

Farris, Paul and Skurnik, Ian and Zimmerman, Alan, Does Tripsense Make Sense?. Darden Case No. UVA-M-0757. Available at SSRN: https://ssrn.com/abstract=1420589

Paul Farris (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-0524 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/farris.htm

Ian Skurnik

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/html/direc_detail.aspx?styleid=2&id=4383

Alan Zimmerman

City University of New York/College of Staten Island ( email )

NY
United States

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