Primary mutual insurer USAA has today announced its intention to acquire insurtech firm Noblr, Inc. as it looks to offer usage-based insurance (UBI) to its members.
Noblr offers smart car insurance that rewards its members’ good driving habits by giving highly accurate, competitive rates that are based on numerous factors, including time of driving, quality of driving, and miles driven.
UBI solutions offer a lower premium by combining usage and behavioural factors to establish pay-as-you-go personalised pricing and opportunity for both savings and rewards. USAA states that this is important for its military service members who are highly mobile and frequently deployed.
Wayne Peacock, USAA President and Chief Executive Officer (CEO), commented: “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, Inc.’s technology platform is another example of our commitment to deliver world-class service and experiences to our members.”
Gary Tolman, Noblr, Inc. CEO and co-founder, 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.”
USAA intends to roll out UBI nationally over the next three years, starting with the states where Noblr is currently available and expanding to other states later this year.
USAA’s behavior-based insurance (BBI) program, SafePilot, grew by 200% in 2020 and the acquisition of Noblr complement this. However, the Noblr program will be separate from SafePilot, which primarily uses behavioural data.
The deal, of which the terms were not disclosed, remains subject to regulatory approval and is expected to close later this year.