Ituran Location and Control Ltd. (NASDAQ: ITRN), today announced that it signed a new and innovative agreement with Harel Insurance, Israel's leading insurance company, to be its provider of location-based services for its Usage Based Insurance (UBI) service.
Harel Insurance Company (Harel) has launched a comprehensive car insurance policy built around Ituran’s solution, based on a driver’s accumulated mileage. The product is supported by an application enabling the insurance company to monitor driver behavior. Furthermore, the system will provide accident warnings in real time to assist in the event of an accident. This will shorten the claims process and reduce costs of the claim.
Harel Insurance will bear all the insured’s costs, including installation and monthly subscriptions fees to Ituran. The customer is expected to see lower annual insurance premiums on the basis of kilometers actually traveled.
Eyal Sheratzky, Co-CEO of Ituran said, “We see this product as a real game-changer for an insurance company, providing a more accurate actuarial and personalization of insurance policies, lower costs and providing an innovative and fully digital service for the customer. It also provides a real benefit to the end-customers, enjoying full transparency and fairer pricing based on their particular level of risk and vehicle usage.”
“We have been working with Harel Insurance for 20 years in vehicle protection, and this step deepens the relationship between us. Our development teams have been working on the product for more than a year. We expect significant market interest and additional launches with other insurance companies.”
Concluded Mr. Sheratzky, “While already taking off in many countries around the world, the UBI field is finally picking up in Israel. We expect that by the end of 2019, a number of insurance companies in Israel will offer UBI policies, which will be based on Ituran’s solution. Longer term, we expect to replicate this solution into additional countries in which we operate.”
Source: Company Press Release