Cambridge Mobile Telematics has acquired the U.S.’s second largest telematics company True Motion
The country’s two largest telematics firms, Cambridge Mobile Telematics and True Motion, are now one. In its first official acquisition, Cambridge Mobile Telematics (CMT) has acquired fellow Cambridge-based rival True Motion. Both companies were founded in Cambridge about a decade ago and are the largest and second-largest telematics providers in the U.S.
“We’re thrilled to join CMT to enable the future of auto insurance,” said Ted Gramer, TrueMotion’s CEO, who will become CMT’s Chief Operating Officer. “About a decade ago, both companies were founded in Cambridge with the same mission to make roads safer. Now, we are joining forces to accelerate this journey. This acquisition makes sense on so many levels.”
“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,” said William Powers, CMT’s Chief Executive Officer. “Both companies have helped transform the auto insurance industry, powering the shift from traditional rating models to usage-based and behavior-based insurance. We are excited to work together to bring telematics solutions to the users of the 1.4 billion vehicles on the world’s roads.”
Access to the driving data of over 6.5 million vehicles worldwide
Prior to being acquired, six out of the top 10 U.S. P&C insurers relied on TrueMotion’s telematics technology. With the merger of these two telematic entities, CMT will now power the telematics products for approximately 21 of the top 25 P&C insurers providers nationwide. CMT’s global presence includes 65 enterprise programs available in over 28 countries. Additionally, CMT has data access to more 6.5+ Million Drivers on the road, giving it unparalleled insight into driving habits and behaviors.
Projections estimate mobile telematics to grow exponentially in the next five years
It may be hard to believe, but mobile telematics did not exist just a decade ago. With that said, as the technology and marketplace enters its second decade, projections are that this market will grow to $125 billion within the next five years. With the vast data resources CMT has already compiled, there is no doubt that CMT will be the leading voice in defining how auto insurance rating, claims, and other issues will be devised not only in the U.S. but globally.
“The adoption of CMT’s telematics services has been growing exponentially since 2018, and with TrueMotion joining us, we are poised for even greater growth,” said Hari Balakrishnan, CMT’s Co-founder and Chief Technology Officer. “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. We look forward to developing and deploying these products to serve our partners and drivers everywhere.”
In January 2019, CMT received a $500 million dollar investment from Softbank to help “promote long-term improvements in driving standards around the world”.
For those readers interested in learning more about the origins of CMT, please refer to Agency Checklists’ 2018 interview with CMT founder Hari Balakrishnan, “Cambridge Mobile Telematics: See Why It Is A Driving Force In The Telematics Industry.”
