Towers Watson Releases DriveAbilitySM 2.0 Score for Auto Insurers

  Towers Watson Releases DriveAbilitySM 2.0 Score for Auto Insurers

New DriveAbility offering includes a version equipped with GPS

Business Wire

NEW YORK -- January 30, 2014

Towers Watson (NYSE, NASDAQ: TW), a global professional services company,
today announced the launch of DriveAbility 2.0 Score, a new analytical scoring
model designed for the automobile insurance industry. DriveAbility 2.0 Score
includes a GPS version with location-specific factors in the risk model and a
non-GPS version. The DriveAbility 2.0 Score GPS uses telematics data in
conjunction with the actual insured losses to develop and validate the
structure and weights of the algorithm for converting policyholders’ driving
data into meaningful metrics. The resulting vehicle operation score leads to
demonstrable price segmentation for the auto insurance industry.

“The new DriveAbility scoring model enhances automobile insurers’ knowledge
about expected losses associated with insured vehicles,” said Robin Harbage,
Towers Watson’s global leader for its usage-based insurance (UBI) consulting
practice. “The new offering also captures specific driver behaviors not
previously available and adds predictive power to claim models.”

DriveAbility 2.0 Score uses granular, second-by-second data, which allows for
a continuous study of driving behaviors rather than predefined events that
occur at a single point in time. It also enables the use of historical data to
study newly defined driver behaviors, as these behaviors can be programmed on
top of the historically collected data, and maps insurance claims to the exact
moment they occur, leading to scores reflecting driving behaviors that
actually cause claims.

DriveAbility 2.0 Score was developed based on an analysis of pooled telematics
and insurance data collected from the Towers Watson UBI program. Towers Watson
has been aggregating these data since 2010, compiled from the enrolled
insureds of multiple insurers in the U.S.

“By aggregating this large pool of data and using our proven analytic
techniques, we have created a vehicle operation score that we believe has
pricing segmentation more than three times greater than rating variables
typically developed,” said Harbage. “This is the only vehicle operation score
created by analyzing telematics data in conjunction with actual insured losses
collected from multiple independent insurers. It provides a clear,
cost-effective way for insurers to go to market with a UBI product and will
benefit policyholders, too, by helping improve their driving habits.”

About Towers Watson

Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services
company that helps organizations improve performance through effective people,
risk and financial management. The company offers consulting, technology and
solutions in the areas of benefits, talent management, rewards, and risk and
capital management. Towers Watson has more than 14,000 associates around the
world and is located on the web at towerswatson.com.

Contact:

Towers Watson
Media Contacts:
Josh Wozman, +1 703-258-7670
josh.wozman@towerswatson.com
or
Binoli Savani, +1 703-258-7648
binoli.savani@towerswatson.com
 
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