IoT technology puts auto insurers in the driver’s seat

I’m excited to attend the Insurance Telematics 2015 conference in Chicago this week. Some of the largest as well as mid-market insurance carriers are here to learn about the latest in usage based insurance (UBI) solutions and talk to customers and collaborators about AT&Ts offers in the space.

AT&T has been a leader in developing IoT solutions for the automotive space. We’ve helped some of the world’s leading automakers offer the connected car experience to their customers. In fact, we connected more than a million cars in the second quarter of this year. In addition, AT&T connects over a million fleet vehicles and light trucks for a variety of enterprise applications.

Frost & Sullivan estimates the U.S. market will have more than 4 million UBI activations by 20171. It’s an important segment in the automotive space and we’re helping auto insurance companies build a UBI strategy that best fits their business needs.

Traditionally, car insurance rates have been based on models derived from credit history, demographics, and public driving records. There was no real way of knowing a driver’s true reliability or to gather real time data. Technology is now available to give auto insurance companies more visibility into their customers’ actual driving habits, based on driving conditions, location, local rules, and laws.

As part of our continued focus in the automotive space, we’re helping auto insurance companies run trials in Usage Based Insurance (UBI) with several ecosystem members. The trial offer uses devices, applications, logistics, and analytics to gather real time data on a driver’s patterns and behavior.

The trials will assist these insurance companies to try out different UBI solutions in the market. They can offer their policy holders discounts with a good performance record, have access to educational videos that teach better driving habits, mitigate risk, and increase loyalty for their most reliable drivers.

The solution opens the door for better customer care, better pricing, and better rewards. It:

  • Improves fraud detection with insight into a car’s location, speed, and airbag deployment.
  • Increases customer loyalty by rewarding safe drivers for good performance and encouraging safer roadways.
  • Can improve profitability by allowing premiums to be based on driver behavior and by creating new driver programs.
  • Help better identify risks with more sophisticated ways to detect acceleration, braking, fast corners, and many other driving factors.

This is another example of an AT&T IoT solution that combines network service, devices, logistics, apps, contextual analytics, and integration services into a single package. If you are at the show this week, come by the AT&T booth and see how IoT is changing the game for the auto insurance industry.

1Frost & Sullivan, “Strategic Update of the North American UBI Market for Passenger and Commercial Vehicles,” (March 2014)

Mobeen Khan Business Executive Mobility Marketing Director AT&T About Mobeen