Towers Watson, a global professional services company, and Hughes Telematics, Inc.(HTI), a Verizon company providing connected solutions, announce they have formed a strategic alliance to provide personal line U.S. auto insurers with comprehensive data services for usage-based insurance (UBI) programs.
With the alliance, Towers Watson’s DriveAbilityservice offering will be powered by HTI’s In-Drive solution. DriveAbility helps insurers convert driving data into industry-applicable metrics, which enables the development of new insurance products and services for consumers.
HTI will utilize its automotive telematics platform to offer enhanced data services and provide the connectivity for additional telematics features. Through the alliance, DriveAbility provides a way for insurers to go to market with a UBI product.
Demand for UBI programs has been rising steadily as auto insurers look for new ways to control claim costs, enhance pricing sophistication, improve profitability, and differentiate policyholder products and services. These programs use a self-installed device in the vehicle to collect valuable driving data and provide innovative, connected vehicle data services. Drivers can lower their insurance rates based on their driving, and they also gain access to information that will help them improve their driving habits.
“An effective UBI program should offer valuable vehicle services, as well as the ability to reward dependable drivers,” says Robin Harbage, leader of Towers Watson’s UBI consulting practice. “Working together, Towers Watson and Hughes Telematics bring extensive knowledge to help insurers determine how to best implement a UBI program.”
Kevin Link, senior vice president, Hughes Telematics Inc., says, “We look forward to working with Towers Watson in expanding our In-Drive solution. This alliance will leverage HTI’s strength in automotive telematics and Towers Watson’s analytical expertise to deliver cost-effective UBI data services for the automobile insurance industry.”