GM to leverage customer data in new insurance business
The carmaker believes its unique vehicle knowledge and technology will provide fairer and more personalized services to insurance consumers.
General Motors has found its new road in insurance.
In an announcement on Nov. 18, the carmaker revealed its new insurance agency, OnStar Insurance Services, that intends to leverage its unique understanding of the vehicles GM produces to offer a secure, fair, personalized, and easy-to-use digital insurance experience for drivers.
OnStar Insurance Services is the exclusive agent for OnStar Insurance, with policies underwritten by Homesite Insurance.
“OnStar Insurance will launch as a more traditional product, but our goal is to add more and more usage-based datapoints as the product evolves, and only do it with the consent of the customer,” Stuart Fowle, GM brand and innovation communication manager, told PropertyCasualty360.com. “A customer can also buy our product without sharing data but won’t benefit from the same opportunity to save money for safe driving behaviors. We’ll also offer homeowners and renters’ insurance for those who want to bundle services.”
GM previously sold auto insurance from 1925 to 2008, according to CNBC. Now, the company hopes to leverage its knowledge to compete in an insurance world that has become heavily data-driven.
When asked why GM decided to launch OnStar Insurance Services in 2020 — a time when many companies are scaling down operations — Fowle explained: “It’s based on the connected vehicle expertise we’ve built and a goal to totally transform the ownership experience at the same time that we pivot our business toward electric vehicles. It’s also the product of a business within GM called Global Innovation that’s responsible for exploring business opportunities beyond the vehicles we build. There was this realization that we know our vehicles better than any third-party insurance company and can use that understanding to better serve drivers. We’re transforming traditional models to make the insurance process better for customers by leveraging the data and service capabilities of OnStar to personalize insurance more than ever before.”
Backed by data
By leveraging its vehicle technology and data analyses, GM intends to provide fairer, more secure, and personalized services to customers.
Customers who subscribe to OnStar and connected services can benefit from policy discounts, personalized vehicle care, recommendations for safer driving habits, and accident response aid. GM also hopes its data will help remove bias judgment from auto insurance pricing by focusing on factors within a customer’s control, such as vehicle usage and driving habits.
“OnStar Insurance will promote safety, security, and peace of mind,” said Andrew Rose, president of OnStar Insurance Services, in a statement. “We aim to be an industry leader, offering insurance in an innovative way.”
OnStar Insurance Services is currently available to GM employees in Arizona. The company aims to expand its services to the general public and all 50 states by year-end 2021.
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