Deutsche Telekom And DriveFactor Announce Complete UBI M2M Solution

For the insurer it is a turnkey solution—from the tracking module and SIM card for the insured person’s vehicle to the platform services and statistical evaluation of driving data. The UBI or pay-as-you drive insurance concept is equally attractive for insurers and their customers. Insured persons benefit from reduction in the premium paid in return for taking part in the program. Insurers can automate processes such as first notification of loss on the basis of the M2M solution and thereby respond faster to insurance claims. Furthermore, the turnkey solution is provided at a fixed monthly rate. “Jointly with our partner DriveFactor we offer insurers a complete single-source UBI service—from the hardware to integrating evaluated driving data into their IT systems,” says Jürgen Hase, Head of Deutsche Telekom’s M2M Competence Center.



DriveFactor was shortlisted twice for this year’s Telematics Update Awards: as a 2012/13 Industry Newcomer and in the Best Insurance Telematics Product or Service Launch category. “In cooperation with Deutsche Telekom we can equip insurers around the world with our telematics technology,” says DriveFactor’s CEO, Steve McKay. “We specialize in usage based insurance programs which are easy to implement and consumer oriented.”



The ease of deployment of the self-installed devices and smartphone apps developed by DriveFactor accelerates the product’s time to market. Motorists can fix a device, compatible with most cars manufactured since 1996 in North America and 2001 in Europe, to their car’s 16-pin OBD-II diagnostic connector themselves. With the aid of several sensors and a GPS receiver the device recognizes, for example, how the car accelerates and brakes and takes bends or curves. After the journey the device transmits the data it has collected to a DriveFactor server via the cellular phone network. The server evaluates the data and relays it to the insurer.



Customers can view their personal data and evaluation on web and mobile portals. That makes individually reduced insurance premiums transparent and comprehensible. They also receive feedback on their driving that motivates them to drive safely.



To protect the customer’s data DriveFactor relays vehicle information as per the Terms and Conditions of the person’s agreement with the Insurer. This is typically information such as mileage, braking, acceleration, and time of day. DriveFactor also relays a total driving score to the insurer which can be used to calculate the savings earned by safer driving.



In Germany the market consists of an estimated 40 million vehicles, in Great Britain of an estimated 25 million vehicles.