Now that most major carriers are selling usage-based car insurance, one of the pioneers in that sector is selling its technology to other carriers as a claims management tool.
San Francisco-based Metromile announced this week that Tokio Marine Holdings had deployed a first notice of loss product through its $13 billion personal auto book of business in Japan.
The Metromile Report product allows consumers to file claims using their smart phones and provides data to claims adjusters that helps detect fraud and apportion fault.
Metromile, starting as a managing general agent in 2011, was one of the first companies to use technology to sell insurance based on the number of miles driven.
The company became a licensed insurer in its own right in 2016 and now sells coverage throughout the United States.
Metromile Communications Director Rick Chen said the platform that Metromile built to sell insurance on its own can be useful throughout the industry.
“We realized that the underwriting claims technology we were building for our flagship insurance product was going to be valuable to other insurers too,” Chen said.
“We can help them reduce loss-adjustment expenses by up to 30 percent.”
Nine of the top 10 private passenger automobile insurers have usage-based insurance programs in place, according to the Insurance Information Institute. In 2018, there were 10 to 11 million telematics-enabled insurance policies in place, out of some 200 million insured automobiles, according to the Institute.
Metromile is packaging its technology in a software-as-a-service offering called Metromile Enterprise.