Towers Watson, a global professional services company, and Hughes Telematics, Inc., a Verizon company providing next-generation connected solutions, announced today 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 DriveAbilitySM service offering will be powered by HTI’s industry-leading 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 cost-effective way for insurers to rapidly 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,” 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.”
Kevin Link, senior vice president, Hughes Telematics Inc., 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.”
About Towers Watson
Towers Watson is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. The company offers solutions in the areas of benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at towerswatson.com.
About Hughes Telematics, Inc.
Hughes Telematics, Inc. (HTI), a Verizon Company, is a leader in implementing the next generation of connected services. A subsidiary of Verizon Communications, Inc., HTI offers a portfolio of location-based services for consumers, manufacturers, fleets and dealers through two-way wireless connectivity. In-Drive®, HTI’s aftermarket solution, offers safety, security, convenience, maintenance and data services. Networkfleet, Inc., a wholly owned subsidiary of HTI located in San Diego, CA, offers remote vehicle diagnostics, an integrated GPS tracking and emissions monitoring system for wireless fleet vehicle management. A majority-owned subsidiary of HTI, Lifecomm, located in Atlanta, GA, plans to offer mobile personal emergency response services through a wearable, lightweight device with one-touch access to emergency assistance.