Towers Watson Partners with Hughes Telematics to Make Usage-Based Insurance a Reality
August 30, 2012
Towers Watson, a global professional services company, and Hughes (News - Alert) Telematics recently announced a strategic alliance to provide personal line U.S. auto insurers with comprehensive data services for usage-based insurance (UBI) programs. Furthermore, this partnership will have Towers Watson's DriveAbility service offering powered by Hughes' In-Drive solution.
DriveAbility was developed to help insurers convert driving data into industry-applicable metrics, enabling the development of new insurance products and services.
Hughes' automotive telematics platform will improve DriveAbility's capabilities via enhanced data services and added connectivity for further telematics features. With these enhancements, DriveAbility will provide a way for insurers to go to market with a UBI product.
“We look forward to working with Towers Watson in expanding our In-Drive solution," said Kevin Link, senior vice president of Hughes Telematics, in a press release. "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.”
Demand for UBI programs has been on the rise as auto insurers search for ways to control claim costs, enhance pricing sophistication, improve profitability and differentiate policyholder products and services. These programs would use a self-installed device in each vehicle, which would collect driving data as well as provide connected vehicle data services. Best of all, drivers would be able to lower their insurance rates based on the quality of their driving, while gaining access to information that would help them improve driving habits.
“An effective UBI program should offer valuable vehicle services, as well as the ability to reward dependable drivers,” said 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.”
Recently, Hughes Telematics was acquired by Verizon Wireless, in an attempt on Verizon's (News - Alert) part to broaden its business reach into the automotive sector. The acquisition cost the network operator $612 million.
Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX. Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.
Edited by Rich Steeves
Article comments powered by