USAA to acquire telematics insurtech

USAA to acquire telematics insurtech | Insurance Business

USAA to acquire telematics insurtech

USAA has announced that it plans to acquire insurtech company Noblr in order 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 personalized pricing. USAA said the option was important for its customers – 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, president and CEO of USAA. “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 is another example of our commitment to deliver world-class service and experiences to our members.”

“This is a wonderful opportunity for the Noblr team to quickly and significantly expand the implementation of usage-based telematics to more states and serve our military families, USAA members,” said Gary Tolman, co-founder and CEO of Noblr. “We look forward to being a part of the USAA team as they embark on their next century.”

Read more: USAA to launch telematics program in most states

USAA plans to roll out UBI nationally over the next three years, beginning with the eight states where Noblr is currently available and expanding to additional states this year. The acquisition announcement comes on the heels of news that USAA’s behavior-based insurance program, SafePilot, grew 200% in 2020, with nearly half of new policyholders in states where SafePilot is available opting into the program.

USAA expects the Noblr acquisition to close later this year. Terms of the transaction were not disclosed.