At Allstate, we have several highly valuable product-focused businesses, most notably our personal lines insurance business. A product-focused approach serves us well today but will not enable us to fully capture the opportunities in the years ahead, so we are building a set of Allstate platforms.
Our strategy in the connected car space is an example of improving current operations and potentially building a valuable strategic platform. Today, technologically sophisticated cars utilize computers, sensors and connectivity to assist drivers in reducing the number and severity of auto accidents. Supporting these changes is consistent with protecting our customers from life’s uncertainties, but it puts downward pressure on auto insurance pricing. It also puts upward pressure on pricing, since repairing these vehicles is more expensive. This technology also creates an opportunity to provide customers with pricing based on actual driving experience, particularly if we can create a strategic platform.
The Drivewise and DriveSense products are incorporated into today’s Allstate and Esurance business models, respectively, by connecting Allstate and our customers through wireless devices. Today, we have over 1 million customers who benefit from this technology. We also provide rewards for safe driving, such as discounts with local retailers. In 2016, we will make available Allstate’s Good Hands RescueSM technology, which enables customers to track a tow truck’s arrival on the phone. Our next step will be to enhance customers’ driving experiences by allowing third parties to provide services to Allstate customers through our technologies. As we do this, we expect the number of customers to grow and the frequency of their interactions through Allstate’s platform to increase. This will enable us to create more value for them, and ultimately shareholders.