Towers Watson, a global professional services company, andHughes Telematics, Inc.(HTI), a Verizon company providing connectedsolutions, announce they have formed a strategic alliance toprovide personal line U.S. auto insurers with comprehensive dataservices for usage-based insurance (UBI) programs.

With the alliance, Towers Watson's DriveAbilityservice offeringwill be powered by HTI's In-Drive solution. DriveAbility helpsinsurers convert driving data into industry-applicable metrics,which enables the development of new insurance products andservices for consumers.

HTI will utilize its automotive telematics platform to offerenhanced data services and provide the connectivity for additionaltelematics features. Through the alliance, DriveAbility provides away for insurers to go to market with a UBI product.

Demand for UBI programs has been rising steadily as autoinsurers look for new ways to control claim costs, enhance pricingsophistication, improve profitability, and differentiatepolicyholder products and services. These programs use aself-installed device in the vehicle to collect valuable drivingdata and provide innovative, connected vehicle data services.Drivers can lower their insurance rates based on their driving, andthey also gain access to information that will help them improvetheir driving habits.

“An effective UBI program should offer valuable vehicleservices, as well as the ability to reward dependable drivers,”says Robin Harbage, leader of Towers Watson's UBI consultingpractice. “Working together, Towers Watson and Hughes Telematicsbring extensive knowledge to help insurers determine how to bestimplement a UBI program.”

Kevin Link, senior vice president, Hughes Telematics Inc., says,“We look forward to working with Towers Watson in expanding ourIn-Drive solution. This alliance will leverage HTI's strength inautomotive telematics and Towers Watson's analytical expertise todeliver cost-effective UBI data services for the automobileinsurance industry.”