Towers Watson teams with Hughes Telematics on UBI

Two leading firms in the insurance telematics space have formed a strategic alliance to provide personal lines auto insurers with data and solutions for usage-based insurance (UBI) programs.

Towers Watson and Hughes Telematics, Inc. (HTI) will use the partnership to allow companies to bring UBI programs to market sooner, notes a press release. Towers Watson offers a service called DriveAbility, which provides analytical support for insurers that translates to an individual score for each vehicle. Hughes Telematics has a product called In-Drive, a set of connected services with a simple, self-installed telematics device. 

Demand for UBI programs has increased steadily as auto 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 collect valuable driving data and provide innovative, connected vehicle data services.

Drivers can lower their insurance rates based on their driving while also gaining access to information about their driving habits.

“An effective UBI program should offer valuable vehicle services, as well as the ability to reward dependable drivers,” says 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.”

“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,” adds Kevin Link, senior vice president of Hughes Telematics Inc.