In the world of technology, time is like dog years. What happened a year ago seems more like seven years ago when we look at how quickly the world is changing. There is a major exception to this rule, though, particularly for mid-tier insurers. Over the next two months, many mid-tier carriers will be wrapping up negotiations with one of the giants of the industry, Progressive Insurance, on a licensing program that effectively will keep those smaller insurers out of the telematics market for two solid years: April 2015.

That doesn't prevent the mid-tier from undergoing the difficult task of fashioning their own user-based insurance program, it just means they can't begin to offer discounts for the safe drivers who fall into the metrics insurers believe constitute safe driving—fewer hard-braking incidents, driving within the speed limit, avoiding acceleration, and more. And woe be the insurance carrier that believes they can get around Progressive's licensing program.

An insurer I spoke with brought in a legal team to report on the Progressive patents and the success Progressive has had in defending those patents in court. After the consult, that insurer began negotiating with Progressive to take part in the licensing. Progressive's stated deadline for agreeing to the licensing program is June of this year.