Canadian property and casualty insurer Intact Financial has made an investment in Metromile, a US-based pay-per-mile car insurance provider. The move is said to be in line with Intact Financial’s long-term strategy to invest in and partner with emerging and innovative companies.
Metromile’s pay-per-mile insurance plan can save low-mileage customers around US$500 annually. An estimated 95 million drivers in the US are considered low-mileage, giving Metromile an addressable market of over US$70bn. Metromile currently operates in California, Oregon, Washington, Illinois, Virginia, Pennsylvania, and New Jersey, giving it access to 30% of drivers in the US.
"This venture represents an exciting opportunity for Intact Financial to expand its core competencies which will ultimately enhance the customer experience." said Karim Hirji, SVP for International & Ventures of Intact Financial.
Other innovations by Metromile include a partnership with Uber in California, Illinois, and Washington, as well as a driving app that provides data about trips, street sweeping alerts, parked location, and car troubleshooting.