IoT and Telematics Solutions for Auto Insurance Companies

Reward Safe Driving and Restructure Insurance Premiums with Usage-Based Insurance

As competition increases in the auto insurance industry, drivers are no longer satisfied with the same one-size-fits-all model that insurance companies have historically used to determine policy rates.

The Internet of Things (IoT) enables a new usage-based premium setting known as usage-based insurance (UBI). UBI is a model in which risk is evaluated based on data collected from the driver’s real-world driving behaviors. Insurers now can reward customers for safe driving and provide more accurate premiums based on data they collect from telematics devices within vehicles.

Customize Your Car Insurance by Driver

With IoT solutions for usage-based auto insurance, also known as telematics auto insurance, insurers can collect real-time data from drivers to:

Evaluate insurance premiums with greater accuracy based on driving habits and behaviors rather than general demographic data. Rather than assessing broad characteristics, such as a driver’s age, gender, marital status or address, insurers can use IoT solutions to gain specific behavioral data on each driver. Gathering this data allows them to process risk-related information on the individual level over time. IoT technology also helps insurance companies avoid the subjectivity, bias and potential dishonesty of manual data collection and self-reporting.

Implement more tailored insurance plans that compensate motorists who drive safely and less frequently. In addition to leveraging data for pay-as-you-go plans, these solutions have the algorithmic power to establish risk profiles for policyholders. Insurers have a better sense of safe drivers and aggressive drivers, with monitors on lane-changing, braking patterns and acceleration frequency.

Augment insights into consumers to improve product offerings and generate marketing campaigns with fine-tuned targeting. In addition to analyzing data trends to uncover new driver segments, insurance companies can gain a competitive advantage by refining their driver-scoring algorithms with their service-provider partners.

Improve Your Bottom Line

By using telematics to collect data from drivers, auto insurance companies can improve their bottom line by:

Forming better customer relationships through more frequent interactions and personalized service

Collecting more and better data to access claims and reduce fraud effectively

Encouraging safer driving behavior that can help reduce the number of claims filed

Rise Above the Competition

With so many options for auto insurance, more drivers are looking for car insurance pricing based on how they drive. At the heart of the UBI in-car device is a cellular communication module capable of handling the complex cellular data networking environment to keep the vehicle connected and ensure secure and reliable communication of UBI data. Your insurance solution can leverage Telit cellular and global positioning (GNSS) modules, our industry-leading IoT data platform to enable automated in-vehicle device onboarding and data orchestration, and cellular connectivity plans optimized for your UBI solution.