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Fly News Breaks for August 7, 2018
PGR, ALL
Aug 7, 2018 | 08:57 EDT
Credit Suisse analyst Michael Zaremski started Allstate with an Outperform rating and $114 price target. The analyst believes Telematics is a profitability game changer, especially since Progressive (PGR) and Allstate have a huge lead on the competition. Zaremski thinks both companies are in the early innings of deploying their telematics data to improve their underwriting, claims, and marketing capabilities. Allstate has roughly 1M policyholders that are using its app or plug-in device, representing about 5% of its customer base, he notes, adding he expects this number to more than double in the coming 18 months, which will provide Allstate with enough data to extrapolate predictive analytics across its entire portfolio to price risk more accurately.