Vodafone and Towers Watson Launch Telematics Usage-Based Insurance Service as First Customer Signs Up
Vodafone and Towers Watson, the global professional services company, are moving forward with a strategic alliance to fast-track the development and introduction of telematics usage-based insurance offerings for motor insurance companies operating outside of North America.
At the launch of the service this week, Vodafone and Towers Watson confirmed that UK insurance company AIG Europe Limited, part of the international group AIG, has signed up to run a pilot.
The combination of Vodafone Vehicle Connect, the company’s telematics proposition, and Towers Watson’s ‘DriveAbility’ programme, will accelerate the pace at which insurers can get new services to market, and at a competitive cost.
With the customer’s prior consent, the solution enables insurers to gather detailed per-second interval data on driving performance, and to offer customers optional value-added services which could in future include automated emergency calls and the tracking of stolen vehicles. Insurers will be able to choose from a range of data collection devices. The service will combine the granular driving data with external information, such as traffic patterns and weather data, to enhance the accuracy and value of the vehicle score.
The majority of solutions are expected to be made available to customers on a self-install basis, including options for insurers to offer ‘try before you buy’ applications on smartphones. In countries where self-installation is not yet practical, assisted installation will also be available. User support, including recommendations for improving driving safety, is being offered through existing insurance call centres, smartphones and a dedicated website.
“Launching and maintaining successful telematics motor insurance products involves more than simply sourcing a device and considering basic driving events,” cautions Duncan Anderson, global head of pricing and product management at Towers Watson. “From our experience of doing work for clients in the United States, we know that analysing granular data allows a much deeper understanding of the context of driving behaviours, which gives a much greater understanding of the likelihood of claims. Indeed we have found that our scores can differentiate loss ratio by over a factor of 10 from the best 10% of business to the worst 10%.”
Erik Brenneis, Director of M2M, Vodafone, said: “With the global reach of Vodafone and Towers Watson, customers can enjoy a consistent delivery and support model throughout many countries.”
In recent months, an increasing number of insurers have signalled their ambitions in the telematics market. Consumer interest across Europe has been boosted by the EU gender regulation and the potential for telematics to help improve driving habits and road safety. Ultimately this could lead to cheaper car insurance for a large number of people.
For further information:
Tel: +44 (0) 1635 664444
Graham Whitehead +44 (0) 1737 274540
Mobile: +44 (0)7827 953969
Vodafone is one of the world's largest mobile communications companies by revenue with approximately 403 million customers in its controlled and jointly controlled markets as of 31 December 2012. Vodafone currently has equity interests in over 30 countries across five continents and more than 50 partner networks worldwide. For more information, please visit www.vodafone.com
About Vodafone Machine to Machine communications
Vodafone Machine-to-Machine (M2M) connects previously isolated machines or devices to the internet, delivering new functionality and enhanced services without the need for human intervention. Supported by over 20 years’ experience and 250 dedicated staff, Vodafone’s global M2M platform makes it easy for global businesses to centrally manage M2M deployments across multiple territories, with greater control and at a lower cost than previously possible. http://m2m.vodafone.com/home/
About Towers Watson
Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that helps organisations improve performance through effective people, risk and financial management. The company offers solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at www.towerswatson.com
‘DriveAbility’ packages a range of services, including strategy, device selection, analytics and pooled or individual pilot arrangements that support insurers to create telematics products. The programme was initially launched in the U.S. and currently has several companies participating in the pilot phase.