Here’s a round-up of this month’s latest insurance industry-related M&As and partnerships.
Chubb introduces new insurance product for the lower middle market segment
Chubb has launched its Benchmarq Package, setting the standard for package policies focused on broader and more scalable coverage and efficiency. This new product includes an expanded base coverage offering in both property and liability, with the option to scale up through higher limits and additional endorsements to create fully customized solutions. Benchmarq is currently available in 29 states.
Chubb and Marsh announces collaboration with WHO for COVID-19 vaccines
Chubb announced a collaboration with World Health Organization(WHO), insurance broker Marsh and Gavi to secure insurance coverage for a program that will offer eligible people in low-income countries and economies a fast and transparent process to receive compensation for side effects associated with COVID-19 vaccines. The COVAX No-Fault Compensation Program is the first and only vaccine injury compensation program operating internationally. COVAX aims to deliver up to two billion doses by the end of the year.
Cincinnati Insurance partners with Cambridge Telematics
The Cincinnati Insurance Company is the latest to join Cambridge Telematics, and launched RideWellSM, a program dedicated to improve all-age drivers’ safety in Illinois, New Jersey and West Virginia. Each driver with favorable scores can receive a discount of up to 18% at annual renewal, in addition to the 10% initial discount at sign-up.
Ford partners with Mile Auto
Ford is partnering with insurtech startup Mile Auto to offer pay-per-mile insurance to its customers. Mile Auto leverages computer vision and decision analytics, and has patented technologies that help low-mileage drivers save as much as 40% off their current auto insurance rates by collecting and validating odometer data. Ford owners who drive under 10,000 miles per year could potentially save between 30% and 40% off their current rates.
Geico takes stake in Aon, partners with Tractable
Berkshire Hathaway announced that it has taken a $943 million stake in Aon, as the P&C broker finalizes its takeover of Willis Tower Watson. Geico also sold large portions of its investments in Chevron and Wells Fargo & Co.
Geico also announced its partnership with AI firm Tractable to speed up auto claims processes. Using Tractable, when a policyholder takes a damaged car to an auto repair shop, the shop will send Geico photos of the damage along with the repair cost estimate.The software will assess whether the estimate is appropriate and allow repairs, eliminating the need for a human adjuster. The Hartford also uses Tractable systems.
The Hartford launches Prevail
The Hartford rolled out Prevail, in an effort to modernize its personal lines business by allowing greater segmentation of risk and beefing up its digital presence in the personal lines space. This new product will be offered to AARP members in the direct-to-consumer sales channel and will also feature the carrier’s TrueLane telematics program. Prevail is currently available in Illinois and Arizona.
The Hanover adds motorcycle insurance to its product suite
The Hanover added motorcycle insurance products onto its Hanover Prestige product suite, which is geared towards upper-middle-market customers. This new policy includes options for rider safety gear, second-chance accident forgiveness, roadside assistance, passenger liability, parts and bike replacement.
ISC launches general liability program for gig economy contractors
Integrated Specialty Coverages (ISC), the multi-line program administrator that builds end-to-end insurance products with AI, has launched a new general liability policy program that provides contractors “by the job” flexibility, offering customizable coverage options and competitive rates. The program is available to 30 different construction trades for a variety of classes beyond the typical handyman job.
Liberty Insurance partners with TuSimple for a safety study
TuSimple and Liberty Mutual will be collaborating on a study to better understand how autonomous technologies perform in comparison to the same types of trucks driven manually by human drivers. TuSimple’s Autonomous Freight Network operates a fleet of 50 L4 autonomous trucks across the states of Arizona, New Mexico, and Texas.
Metromile and Hippo partner up on bundles
Usage-based auto insurance company Metromile is now partnering with home insurance company Hippo to bundle coverages, offering a predominately digital experience from quote to bind to claim as well as a smart-home technology program. This new bundle can save customers up to 15% and will be available in eight states by the end of the year.
Neptune expands flood insurance offering
Neptune Flood has started offering insurance to small business administration borrowers for both owners and tenants. Neptune’s flood insurance policy meets all of the requirements for mandatory bank acceptance that companies in high-risk areas have to meet and offers an alternative to the NFIP that can typically save business owners money with expanded coverage.
State Farm provides electrical fire risk detectors, partners with Fiserv
State Farm is expanding its partnership with smart home developer Whisker Labs to deploy Ting electrical-system sensors among its customers. Ting plugs into a wall outlet and monitors a home’s electrical system for hazards before they get a chance to cause a fire. Eligible customers will receive the sensor for free, no annual service fees from Ting for three years, and $1,000 in credit toward remediation of electrical fire hazards.
State Farm also announced its partnership with Fiserv to expedite the claims payout process for most of its personal lines carriers in its Digital Pay architecture. This new partnership will offer State Farm policyholders expanded payment options, simplified digital communications, expedited claims payment and modernized enrollment processes. Insurers can also benefit from the operational efficiencies of digital payments such as seeing cost savings compared to paper checks or wire transfers and a reduction in call center inquiries.
USAA expands SafePilot in seven more states
The USAA SafePilot program is now accessible in Alabama, Colorado, Minnesota, Nebraska, Nevada, Oklahoma and Utah. Enrollments in the program grew by 200% in 2020, and nearly half of the new policyholders were in states where SafePilot was available as an opt-in. Members who enroll can receive up to 30% discounts for safe driving behaviors, in addition to receiving 10% off for signing up.