Sprint and Intelligent Mechantronic Systems, a Canada-based connected car company, have teamed up to offer usage-based insurance services through Sprint's Integrated Insurance Solution portfolio for auto insurance customers.
IMS UBI Intelligence offers insurers the opportunity to develop policy premiums based on actual driving behavior, and discover new, related revenue streams, the companies said. Customers who choose to install telematics devices into their vechicles may receive lower auto insurance costs based on their driving data, including distance traveled, vehicle braking and acceleration patterns.
IMS UBI Intelligence removes the need for insurers to work with multiple suppliers or partners before implementation, the companies say. "We have selected IMS because they provide the most complete, turnkey solution available on the market today, including hardware, logistics, support, secure data warehousing and analytics," says Mohamed Nasser, director-M2M Product and Marketing, Sprint.
By 2017, it's estimated that more than 60% of the world's vehicles will be connected. Progressive, which launched the first telematics product in 1998, has reported more than $1 billion in premium revenue for usage-based insurance policies. Progressive forecasts that more than 25% of the entire U.S. automotive-insurance premium revenue will be generated via telematics by 2020, representing more than $30 billion.
Sprint plans to expand the program with services that coach young drivers, infotainment services, vehicle diagnostics and fleet management.
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