Professional services company Towers Watson (New York, USA) has announced a partnership with Verizon-owned Hughes Telematics (Atlanta, USA) to provide data services to US auto insurers for use with usage-based insurance (UBI) programs.
The deal will see the two companies combine their telematics capabilities to help insurers develop usage-based offers.
The DriveAbility technology from Towers Watson already helps insurers convert driving data into industry-applicable metrics, while Hughes provides data services and connectivity for telematics features.
The organisations say that demand for usage-based programs has been rising steadily as insurers look for new ways to control claim costs, enhance pricing sophistication, improve profitability and differentiate policyholder products and services.
The programs use a self-installed device in the vehicle to gather driving data and provide connected vehicle services.
Drivers gain access to information that can help them to become better drivers and benefit from lower insurance rates in future.
“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, in a statement. “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 of Hughes Telematics, said: “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.”