Towers Watson (New York) and Hughes Telematics (HTI Atlanta), a Verizon company, have formed a strategic alliance to provide personal line U.S. auto insurers with comprehensive data services for usage-based insurance (UBI) programs.
Under the terms of the alliance, Towers Watson's DriveAbility service offering will be powered by HTI's In-Drive solution, according to a joint statement. DriveAbility helps insurers convert driving data into industry-applicable metrics, which enables the development of new insurance products and services for consumers, according to the alliance partner statement. 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 what the vendors say is a cost-effective way for insurers to rapidly go to market with a UBI product.
"An effective UBI program should offer valuable vehicle services, as well as the ability to reward dependable drivers," comments 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."
[For more reporting on the telematics trend, see Is Your Telematics Program Production-Ready? 3 Critical Questions.]