US comparison site announces 100% profitability on last year
The Texas-based comparison site, The Zebra, has announced 100% annual profitability and growth in 2020.
The 2012 start-up is now a leading figure in the insurance comparison site market. The Zebra originally entered the car insurance sector, but recently expanded to home insurance and now provides a strong range of insurance carriers on its platform, for customers across the US to access.
The Zebra’s homeowner’s product was launched in December 2019 and has already been utilized by 90,000 customers. Currently providing options in 48 US states, The Zebra is collaborating with national and regional homeowner’s insurance providers to market several options to consumers through their telephone-based and online agent platforms.
A favourite go-to for online shoppers, the company has issued over six million quotes since 2012 and has a customer satisfaction rating from Shopper Approved, 4.7/5. It acts as an insurance comparison platform that connects customers to licensed agents, rather than a lead-generation site.
Providing a counterpoint to today’s business climate, which has seen thousands of enterprises worldwide either shrink or collapse following the global economic downturn, The Zebra’s success has been meteoric. The company’s performance crossed the $6m net revenue barrier in May 2020 and grew significantly in the second and third quarters of this year.
Speaking of the company’s success, Keith Melnick, CEO, The Zebra said, “It’s not every day that a company achieves profitability ahead of schedule during a global pandemic, but The Zebra’s team has done just that. How? Strong partnerships with some of the nation’s best insurance companies, a diversified marketing mix, clear product vision and a stellar team who has really risen to the challenge during these critical few months.”
Martina Hahn, Chief Product Officer, The Zebra, added that the present financial climate has resulted in many people seeking out insurance policies to give them an element of stability. She said; “With the auto comparison platform serving more than four million consumers annually, we knew the time was right to deepen the relationship with our customers by helping them find the best insurance policies for their homes. So far, we’ve served new homeowners like me looking for their first-ever policy, and people on their fourth home who are making sure they’re properly covered in these uncertain financial times.”
Products due to be launched by The Zebra will enable customers to bundle both home and car insurance policies. The company’s philosophy is also aimed at securing customer loyalty through trusted relationships with an insurance advisor.
TrueMotion insurtech acquired by Cambridge Mobile Telematics
One of the world’s leading telematics insurtechs, Cambridge Mobile Telematics, was launched in 2010 and powers 65 enterprise programmes in 28 countries.
Meanwhile, TrueMotion, which launched in 2012, has enjoyed significant success as a telematics operator, raising US$10mn in its seed funding round in 2010, and then partnering with the motor insurtech Noblr in 2019.
TrueMotion has also entered the European market, collaborating with LB Forsikring to promote safe driving in Denmark.
The joining of the companies means TrueMotion’s 150-strong workforce will join Cambridge Mobile Telematic’s already established team, along with their client list, which includes Travelers, Farmers, and Progressive.
The new company will focus on increased interest in using telematics for crash reconstruction in personal lines claims and more innovation in the telematics space.
Speaking about the acquisition, William Powers, CEO, and co-founder of Cambridge Mobile Telematics, described the move as an opportunity to explore new markets, expand throughout the US and bring telematics to a much wider customer base.
"With this acquisition, we will use our world-class talent, technology, and scale to help our partners overcome the complex challenges of global road safety,” he added.
Ryan McMahon, VP of insurance and customer affairs for Cambridge Mobile Telematics, explained that expanding the company with additional talent and customers would help meet the demands of a growing telematics market. He also quoted data from a study by J.D. Power which revealed that personal auto telematics users have doubled in five years to 16% of policyholders.
McMahon told the press, “This market is rapidly expanding, and building more capabilities is more important than ever,” McMahon says. “Both companies follow similar philosophies and grew up in similar ecosystems, and now we’re bringing those cultures together.”
He continued, “Telematics is absolutely the future of commercial auto and rideshare, and it’s kind of a step up beyond the normal telematics."
McMahon added, “We will not only widen our lead in smartphone telematics, but also use our combined talent to invent new products for risk measurement, contextual telematics, and crash mitigation across emerging mobile, IoT, connected-car, video, and sensing technologies.”
Five reasons why telematics is in demand
- It reduces fuel costs and increases operational efficiency. This is a consideration for most commercial fleets given the rising costs of fuel
- The technology enables fleet managers to plan operations with greater precision by providing exact locations, timescales, and speeds of vehicles.
- It improves driving standards and monitors driver behaviour, reducing detours and ensuring responsible driving.
- It helps fleet health and maintenance by monitoring the health of operational vehicles.
- It increases corporate social responsibility in terms of care for the driver, the vehicle, the impact of driving in terms of emissions, and also the security of the vehicle itself.
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