GM returns to insurance industry with OnStar

Wednesday, 18. November 2020 16:00

General Motors announced on Wednesday the establishment of a new unit that would be operating as an insurance agency, exclusively working with the company's subsidiary, OnStar Corporation, which offers in-vehicle security and remote diagnostics.

General Motors plans to introduce a pricing system based on driving behavior rather than age, gender, and other parameters that have been used in the past, the firm noted. Initially, coverage will be offered to GM's staff in Arizona, and, by the end of 2021, it is expected to include all of the automaker's employees and the general public.

OnStar Insurance Services President Andrew Rose expressed his optimism that General Motors can "return to being a material player in the auto insurance market again." General Motors recorded revenue of $35.5 billion in the third quarter of 2020.

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Breaking the News / CG