Posted on 25 Jul 12 by Annie George
Communications firm Sprint has begun selling driver tracking services to auto insurers.
Sprint said its integrated, end-to-end usage-based insurance (UBI) services is designed specifically for the auto insurance industry. The company said it will be the first wireless carrier to offer a low-cost turnkey trial program for insurance carriers to start their own trials and pilot programs.
Integrated Insurance Solutions from Sprint will give insurance carriers the ability to offer customers personalized discounts based on their driving habits. The vehicle is fitted with a small device that plugs into the diagnostic port. It captures vehicle information and driver behavior data which is transmitted over the Sprint wireless network. A cloud-based system analyzes the data with driver scoring software that enables insurance carriers to improve driver risk assessments, reduce costs and improve profitability.
“We have simplified usage-based insurance,” said Matt Carter, president-Global Wholesale and Emerging Solutions, Sprint. “Sprint has assembled all the necessary components together so that insurers have a single point of contact for all UBI-related needs.”
With Integrated Insurance Solution, insurance carriers will be able to identify better drivers and reduce risk, according to Sprint. Carriers will be able to receive detailed analytical data about participating policyholders’ driving behaviors. In addition to “pay as you drive” programs that provide discounts to consumers based on driving behavior, insurance carriers can also offer their customers Web-based tools that let them monitor their vehicle health, get tips on how their driving behavior can be adjusted to be more fuel efficient and even monitor their vehicles’ location.
Sprint has worked with Esurance on a UBI pilot program for policyholders in Arizona. Based on the success of that program, Esurance recently launched its first UBI offering for consumers in Texas.
Chris Henn, managing director-Product, Esurance, said that the UBI program has allowed Esurance to offer consumers discounts of up to 30 percent based on their driving habits.
Sprint said it is offering a three-month UBI trial program that will enable insurance carriers to evaluate the Sprint service.