Sprint to provide vehicle-tracking technology for usage-based insurance

U.S. wireless carrier Sprint has set its sights on providing vehicle-tracking technology that will provide insurers with information about vehicle activity and driver behaviour.

Sprint has announced its intention to market integrated, end-to-end, usage-based insurance (UBI) services, which the company contends will enable insurance carriers to identify better drivers and reduce risk. This will help carriers offer customers personalized discounts based on their driving habits.

The company reports its Integrated Insurance Solution will employ wireless network, hardware, driver analytics and scoring to deliver UBI.

The solution will work this way: a vehicle is fitted with a small device that plugs into the diagnostic port, capturing vehicle information and driver behaviour data (common variables include mileage, driver speed, location and braking). The information is transmitted over the Sprint wireless network. A cloud-based system analyzes the data with driver scoring software that helps insurance carriers improve driver risk assessments, reduce costs and improve profitability.

Sprint will be the first wireless carrier to offer a low-cost turnkey trial program for insurance carriers to start their own trials and pilot programs, the statement adds.

“Sprint has assembled all the necessary components together so that insurers have a single point of contact for all UBI-related needs,” Matt Carter, president of global wholesale and emerging solutions for Sprint, says in a statement.

Sprint has worked with Esurance on a UBI pilot program for policyholders in Arizona and Esurance has since launched its first UBI offering in Texas. “Partnering with Sprint on usage-based insurance is helping Esurance to offer consumers discounts of up to 30% based on their own unique driving habits,” reports Chris Henn, managing director of product for Esurance.

Sprint also announced it is offering a three-month Jump Start UBI Trial Program, an industry first, to allow insurance carriers to evaluate the ROI of Sprint’s Integrated Insurance Solutions.