USAA Announces Plans to Acquire UBI InsurTech Noblr

The acquisition increases USAA’s competitiveness and adds the choice of UBI to its highly mobile military service members.

(Image source: Toyota.) 

USAA (San Antonio) has announced that it plans to acquire InsurTech company Noblr, Inc. (San Francisco) to offer usage-based insurance (UBI) to its members. USAA says that the usage and behavioral factors used by Noblr to create pay-as-you-go personalized pricing and opportunity for savings and rewards is well suited to its military service members, who are highly mobile and frequently deployed. USAA says it expects the acquisition to close later this year but declined to disclose the terms of the transaction.

Wayne Peacock, President and CEO, USAA.

USAA says that adding a UBI product helps it achieve its mission, and that its financial strength enables it to accelerate innovation by acquiring technology and speeding its entry into the growing UBI market.

“The acquisition of Noblr, Inc. increases our competitiveness in the marketplace and adds the choice of UBI capability for our members,” comments Wayne Peacock, President and CEO, 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 platform is another example of our commitment to deliver world-class service and experiences to our members,” adds Peacock.

“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,” comments Gary Tolman, CEO and co-founder, Noblr, Inc. “We look forward to being a part of the USAA team as they embark on their next century.”

Gary Tolman, CEO & Co-founder, Noblr.

Rolling out Nationally during Next Three Years

USAA reports that it plans to roll out UBI nationally over the next three years, starting with the eight states where Noblr is currently available and expanding to additional states this year.

The acquisition complements the news that USAA’s behavior-based insurance (BBI) program, SafePilot, grew 200 percent in 2020 and that nearly half of new policyholders in the states where SafePilot is available opt in to the program.

The Noblr, Inc. UBI program will be separate from SafePilot, which primarily uses behavioral data. UBI and BBI programs incentivize drivers to examine their driving habits, ultimately creating safer roadways while offering savings. Both programs will be optional for members.

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

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