Insurance provider USAA is set to acquire US behaviour-based car insurance company Noblr for an undisclosed fee.
California-headquartered Noblr markets products that offer customers a lower premium and a mileage variable by combining usage and behavioural factors to form a pay-as-you-go personalised pricing and opportunity for savings and rewards.
According to USAA, this acquisition will help offer usage-based insurance (UBI) to its members and be helpful for USAA’s military service members, who are commonly highly mobile and regularly deployed.
The US insurance provider claimed the purchase of Noblr complements the news that the former’s behaviour-based insurance program – SafePilot – grew 200% in 2020, highlighting growing demand for user-centric insurance programs.
However, USAA highlighted the Noblr UBI program will remain separate from SafePilot, as the latter primarily uses behavioural data. Both programs will remain optional for members.
USAA intends to close the acquisition later this year. The company is subsequently looking to roll out UBI nationally over the next three years, beginning with eight unnamed states where Noblr is currently available and then expanding to further states later this year.
USAA president and CEO Wayne Peacock said, “The acquisition of Noblr, Inc. increases our competitiveness in the marketplace and adds the choice of UBI capability for our members. 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’s technology platform is another example of our commitment to deliver world-class service and experiences to our members.”
Noblr CEO and co-founder Gary Tolman added, “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. We look forward to being a part of the USAA team as they embark on their next century.”
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