M2M telematics solutions
Making roads safer for drivers
Insurance telematics is the concept of electronically recording and transmitting driving behavior in a machine-to-machine (M2M) communication that helps automotive insurance firms determine an appropriate premium for their clients. Often described as “Pay As You Drive,” or “PAYD,” insurance telematics is about transferring responsibility for determining a driver’s risk to other drivers from his or her driving history to electronic tracking systems.
Telematics insurance is, fundamentally, the integration of several different types of systems: telecommunications, global positioning/automotive navigation, and risk assessment. Although it is by no means limited to this single purpose, telematics insurance is currently understood as the interaction between a vehicle and an insurance company in order to determine driving habits, from a client’s average speed, to their typical distance driven and even their usual braking procedures. Drivers who drive close to the speed limit, refrain from excess driving, and brake early and smoothly are credited with being safe drivers and are privy to lower rates.
IMS insurance telematics features:
- Logistics, equipment & SIM provisioning
- Secure end-to-end transport
- Dedicated, results-oriented program management team
Telematic automotive insurance was first patented by Progressive Auto Insurance. The patent covers the use of handheld telecommunications devices, such as smartphones, to interact with the global positioning systems in a vehicle. Under this patent, Progressive monitors various vehicle components and how they are used, employing an automobile’s engine control computer to determine typical speeds, the time of day when a vehicle is typically used, distance driven, and braking force.
To date, telematics insurance has proven most beneficial to young drivers. Tests conducted by Progressive reveal that drivers between the ages of 18 and 24 were approximately 20 per cent less likely to get into a traffic accident while the vehicles they used were associated with a telematics insurance scheme.
Current telematics research could continue to have a dramatic impact on the development of future insurance programs. One possibility is the adoption of telematics-based emergency warnings systems that allow vehicles to interact with one another, thereby preventing accidents caused by driver error. The implementation of such technology by automakers and insurers could help further reduce the number of automobile accidents, thereby reducing automotive insurance premiums.
Learn more about IMS industry-leading insurance telematics solution UBI Intelligence. Our UBI Program Director Daniel Lajeunesse, would be happy to answer any questions at 1.519.745.8887 ex.7005 or email at dlajeunesse@intellimec.com.
See also: Usage-Based Insurance Solutions, PAYD – Pay As You Drive Auto Insurance, M2M & Telematics, Insurance Telematics, IMS Auto Insurnace Telematics
