Deutsche Telekom and DriveFactor have unveiled a complete usage-based insurance (UBI) system that enables motor insurers to offer their customers special benefits for driving safely.
The offering is based on a machine-to-machine (M2M) system that evaluates driving behaviour. Deutsche Telekom and DriveFactor have launched their usage-based system at this week's European Insurance Telematics Conference in London.
The Deutsche Telekom and DriveFactor system consists of a tracking module and SIM card for the insured person's vehicle and platform services and statistical evaluation of driving data for the insurer. Insured persons can benefit from a reduction in the premiums they pay in return for taking part in any roll-out programme.
The turnkey solution is provided at a fixed monthly rate. Insurers can automate processes such as first notification of loss on the basis of the M2M solution and thereby respond faster to insurance claims, said Deutsche Telekom and DriveFactor.
"Jointly with our partner DriveFactor we are offering insurers a complete single-source UBI service, from the hardware to integrating evaluated driving data into their IT systems," said Jrgen Hase, head of Deutsche Telekom's M2M competence centre.
Motorists can fix a device, compatible with most cars manufactured since 1996 in North America and 2001 in Europe, to their car's 16-pin OBD-II diagnostic connector themselves.
With the aid of several sensors and a GPS receiver the device recognises, for instance, how the car accelerates and brakes and takes bends or curves. After the journey the device transmits the data it has collected to a DriveFactor server via the cellular phone network. The server evaluates the data and relays it to the insurer.
Customers can view their personal data and evaluation on web and mobile portals. That makes individually reduced insurance premiums transparent and comprehensible, said the suppliers. Drivers also receive feedback on their driving that is designed to motivate them to drive safely. DriveFactor also relays a total driving score to the insurer which can be used to calculate savings earned by safer driving.