For decades, the auto insurance industry was a bit of a guessing game. Insurance carriers had to try and figure out rates based on demographic information rather than hard data about actual driving habits. But now, thanks to embedded M2M technology, all of that is changing. With the advent of usage-based insurance (UBI), insurance carriers are able to gather information about mileage, speed, idle time and a whole lot more. This allows insurance carriers to offer discounts based on driver habits, and this can provide savings for policy holders and loyalty advantages for insurance carriers.
As more and more people become aware of UBI solutions, insurance carriers of all sizes realize that they need to have a UBI offering. But many carriers don’t have the time, money or resources to develop their own solution. That is where embedded M2M solutions expert Sprint (News - Alert) comes in. Sprint has dedicated itself to being a leader in this space, creating a turnkey UBI solution that is suitable for insurance carriers of all sizes. Thanks to this solution, Sprint has been recognized as a leader in the space by Frost & Sullivan (News - Alert).
According to Michelle Lamar, marketing segment manager for insurance and aftermarket at Sprint, the company has dedicated itself to customer service. Sprint worked with partners like Agnik, Modus and Anydata to create an end-to-end UBI solution, complete with hardware, wireless connectivity and analytics. While auto insurance carriers can choose to use the Sprint solution right off the shelf, they can also work with the Sprint team to customize aspects of the solution, or even work with preferred partners and providers. Lamar stated that the entire Sprint team – engineers, marketing, operations, etc. -- works together in close collaboration and communication to make sure that the companies are getting the most out of the UBI offering with a minimum of hassle. As one member of her team put it, “We’ve done the work so you don’t have to.”
The recognition from Frost & Sullivan recognized Sprint’s leadership in the UBI space ad its exceptional customer service. "Sprint's integrated insurance solutions will empower small- to medium-sized insurance companies, enabling them to offer end users direct control of their insurance premiums," said Frost & Sullivan industry analyst Niranjan Manohar in a statement. "This is likely to influence governments to provide further tax discounts to insurance companies and policyholders adopting this method."
There is little doubt that UBI is a topic that is capturing the attention of people around the country – and the Internet. Social media analyst firm Spiral 16 recently released a report giving a market snapshot of usage-based insurance. Often, when a new technology is introduces, people have a mixed reaction to it, but according to the Spiral 16 study, over 79 percent of online chatter was positive, with 11 percent negative and 10 percent neutral. It is also interesting to note that the study found TMCnet to be the most influential site talking about UBI. Clearly, it is a topic that will be relevant in the future, and Sprint will continue to be a leader in the space.
Edited by Rich Steeves