New technologies and innovation are helping to bring the insurance industry into the 21st century.
One big move in the space took place when Allstate announced its plans to purchase disruptive online protection plan provider SquareTrade.
Allstate agreed to acquire SquareTrade for approximately $1.4 billion in a deal that’s expected to close in Jan. 2017.
“Allstate’s consumer-focused strategy of providing unique products will be further enhanced with the acquisition of SquareTrade,” Tom Wilson, chairman and CEO of Allstate, said in a statement.
“This acquisition expands Allstate’s customer relationships with 25 million protection plans for consumer electronics and connected devices. SquareTrade’s exceptional customer service, innovative product design, analytics and supply-chain logistics have led to a fourfold increase in revenue over the last five years and are consistent with Allstate’s history of product innovation. The SquareTrade team under Ahmed Khaishgi has built strong relationships with major retailers, including Amazon, Costco, Sam’s Club, Target, Staples, Office Depot and Toys“R”Us, and further expands our customer reach,” Wilson concluded.
Ahmed Khaishgi, cofounder and CEO of SquareTrade, added that, by joining Allstate, SquareTrade will be able to expand into new markets and product offerings.
“We put customers first and provide them the peace of mind that, if their television, cell phone or computer breaks, SquareTrade can get them back to normal so they can stay connected with the world. With Allstate, we will gain a broad set of capabilities, enabling us to further leverage our distribution, brand and team, while retaining our entrepreneurial spirit,” Khaishgi said.
Last year, Allstate made another strategic move by taking insurance claims mobile.
The company launched Fast Mobile e-Payment, a part of the new Allstate ExpressPay portfolio, which allows customers to have the insurer send payment directly to a bank account. Allstate said the service is the first of its kind in the U.S., and it shows how insurers are stepping up efforts to meet the demands of consumers who are growing increasingly comfortable with using mobile devices for important matters, including insurance claims.