Sprint integrates wireless network, hardware, driver analytics and scoring to deliver usage-based insurance
M2M technology aims to improve driver safety, reduce risk and save consumers money.
Sprint (NYSE: S) today announced that it will market integrated, end-to-end usage-based insurance (UBI) services designed specifically for the auto insurance industry. Sprint 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 easily 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.
Sprint is providing insurers with a seamless experience so that they can expand their offerings but still focus on their core business.
“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. We are working with industry-leading companies to help insurance carriers offer more options and help the policyholders drive more safely and save money. Sprint is committed to making transportation safer through our dependable and continually improving network.”
With Integrated Insurance Solutions from Sprint, insurance carriers will be able to identify better drivers and reduce risk. 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 value-added services such as 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.
Experience with UBI
Sprint has worked with Esurance on a successful 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:
“Partnering with Sprint on usage-based insurance is helping Esurance to offer consumers discounts of up to 30 percent based on their own unique driving habits”
“Our embrace of UBI fits with Esurance’s approach to using the latest technology, and is a great fit for our customer base of self-directed, tech-savvy customers.”
Sprint is demonstrating leadership in this emerging, fast-growing market by offering innovative usage-based insurance solutions that offer many benefits to insurance carriers and consumers. The superior location capability of the inherently secure Sprint CDMA network will assist Integrated Insurance Solutions from Sprint in providing insurers and their policyholders with accurate and reliable data analytics.
Sprint also announced that it is offering a comprehensive, three-month Jump Start UBI Trial Program, an industry first. This packaged, cost-effective trial program will enable insurance carriers to evaluate the ROI of Integrated Insurance Solutions from Sprint.
Wireless Network Enables Innovation
UBI is the latest example of how Sprint is leveraging its wireless network and advancing machine-to-machine (M2M) technology. Sprint has been at the forefront of M2M technology with more than 12 years of experience in this wireless industry revolution. The Sprint 3G network has a nationwide footprint and uses inherently secure CDMA technology.
Over the years, Sprint has joined and supported a large and diverse portfolio of innovative companies to create smarter wireless solutions that change the way people work and live. Sprint has certified hundreds of M2M solutions and has millions of devices running on its network today. As M2M technology continues to grow, it will be able to benefit from Sprint’s brand-new network, which is currently being built around the country. The Network Vision initiative is designed to enhance customers’ network experience with faster data speeds, improved voice quality and easier connectivity. Sprint expects to complete Network Vision by the end of 2013.
About the Sprint Emerging Solutions Group
Sprint’s M2M leadership has earned prestigious third-party validation – including the top-ranked North American M2M provider (and second-ranked carrier overall among 12 global service providers) by Analysys Mason, and the Frost & Sullivan 2011 Customer Value Enhancement Award in North America for Machine to Machine Communications. To learn more about Sprint’s M2M offerings, visit www.sprint.com/m2m.