This week, Allstate announced it is acquiring
If you're surprised that hawking such warranties is worth over
So this acquisition -- coupled with a lack of information about
Obviously, Allstate CEO
Just how much value
In a conference call this week with investors, Wilson spoke broadly about
"We think it has a lot of upside from where it is today," Wilson told financial analysts.
Those outlets funnel customers to
For the foreseeable future, the two companies will be run independently, asserts Wilson.
The new acquisition promises to bring along some hipster technology and sensibilities to Allstate.
The message: Insure your phones.
Despite staying at arm's length right now, expect Allstate to get more involved. After all, a company doesn't pay that type of money, and take even a modest earnings hit, just to leave an acquisition completely alone.
Eventually, look for Allstate to assist in the underwriting of
But right now,
In March, Allstate opened a 400-employee "innovation hub" in the
Wilson also has advocated for Allstate using drones to fly over disaster sites to report back on the condition of clients' homes, cars and businesses with pinpoint accuracy.
Allstate also is investing in driver-monitoring technologies, commonly called telematics in the car-insurance industry, which connect with a vehicle's computer system and help insurers know if someone is driving a car under the influence or is not authorized to take the wheel.
Each of these high-tech possibilities are bets on the future that herald new opportunities and unique challenges, including regulatory oversight and privacy concerns.
Allstate, a publicly held company responsible to shareholders, didn't provide any of the company's financials. It promises to do so at a later date.
It is not known if
So, here's the best warranty I can muster right now: It's going to take a while before we can determine if Allstate's surprising bet on
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