Telefónica Insurance Telematics: New M2M solution can reduce car insurance costs
In-car telematics can increase traffic safety and reduce insurance premiums for safer drivers. The next step towards a "connected car"
Telefónica Germany today announced its new and innovative insurance telematics solution at the 19th Handelsblatt Jahrestagung TK Europa. Telefónica Insurance Telematics is based on Machine to Machine (M2M) technology and analyses driving behaviour to more accurately calculate the cost of car insurance. The new service is now available for insurers who can use driving information in their risk calculations to offer their customers a completely new kind of car insurance.
According to the motto "safer drivers deserve cheaper premiums", insurers can offer competitive price reductions to those customers who drive more responsibly, and therefore help to attract low risk new customers. This is especially good for young drivers with good driving habits. British and American insurance companies have already established that these telematics systems can reduce claims expenditure by up to 30 percent.
The innovative solution for the insurance sector consists of a complete telematics platform, which Telefónica Digital has already successfully launched in partnership with Generali Seguros in Spain. It is now also available in Germany where Telefonica is already working with a number of major insurers.
The utmost attention is paid to the safe transfer and storage of data. Driving information is encrypted and processed separately from the insurance provider's systems. Aggregated values in the form of a score are transferred to the insurer, incorporating factors like exceeding speed limits, braking behaviour and night driving. This score is then used to adjust the monthly insurance premium without the insurer seeing any detailed driving or location data.
The new product from Telefonica also offers great advantages to policy holders who can see their driving progress through a web portal and a smartphone app (iOS, Android). In addition they can benefit from value-added services such as stolen vehicle tracking and GPS breakdown calls.