Latest news from the USA for you;
USAA announced today that it plans to acquire insurtech company Noblr, Inc. to offer usage-based insurance (UBI) to its members.
UBI products offer a lower premium, along with a mileage variable, by combining usage and behavioral factors to create pay-as-you-go personalized pricing and opportunity for savings and rewards. This is important for USAA’s military service members who are highly mobile and frequently deployed.
“The acquisition of Noblr, Inc. increases our competitiveness in the marketplace and adds the choice of UBI capability for our members,” said Wayne Peacock, USAA President and Chief Executive Officer. “Members will get personalized pricing that fits their risk and usage profile, better control over the cost of their auto policies and an exceptional end-to-end digital experience.”
“USAA has always been an innovator, and the addition of Noblr, Inc.’s technology platform is another example of our commitment to deliver world-class service and experiences to our members,” added Peacock.
“This is a wonderful opportunity for the Noblr team to quickly and significantly expand the implementation of usage-based telematics to more states and to serve our military families, USAA members,” said Gary Tolman, Noblr, Inc. CEO and co-founder. “We look forward to being a part of the USAA team as they embark on their next century.”
USAA plans to roll out UBI nationally over the next three years, starting with the eight states where Noblr is currently available and expanding to additional states this year.
The acquisition complements the news that USAA’s behavior-based insurance (BBI) program, SafePilot, grew 200% in 2020 and that nearly half of new policyholders in the states where SafePilot is available opt in to the program.
The Noblr, Inc. UBI program will be separate from SafePilot, which primarily uses behavioral data. UBI and BBI programs incentivize drivers to examine their driving habits, ultimately creating safer roadways while offering savings. Both programs will be optional for members.
USAA expects the acquisition to close later this year. Terms of the transaction were not disclosed. The transaction is subject to regulatory approval.