Towers Watson and Hughes Telematics have entered into a strategic alliance to cater personal line US auto insurers with comprehensive data services for usage-based insurance (UBI) programs.

As per the partnership agreement, Towers Watson’s DriveAbility service offering will be powered by HTI’s industry-leading In-Drive solution, which will leverage insurers to convert driving data into industry-applicable metrics, which in turn will be use in the development of new insurance products and services for consumers, claims Towers.

The automotive telematics platform will offer improved data services and provide the connectivity for additional telematics features.

The program gathers driving data from the self installed device in the vehicle and if drivers pay attention to their driving habits, they can reduce their insurance rates, said the service provider.

Towers Watson’s UBI consulting practice leader Robin Harbage said an effective UBI program should offer valuable vehicle services, as well as the ability to reward dependable drivers.

"Working together, Towers Watson and Hughes Telematics bring extensive knowledge to help insurers determine how to best implement a UBI program," Harbage added.