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Vodafone teams with Towers Watson on M2M usage-based insurance

Operator group Vodafone has struck a deal with US business risk management services firm Towers Watson to introduce telematics/usage-based insurance services to the operator’s connected car offering. The service will be offered to motor insurance companies operating outside of North America.

Vodafone’s Vehicle Connect service is the operator’s telematics proposition, which it is integrating with Towers Watson’s ‘DriveAbility’ programme. The programme packages a range of services, such as analytics, that allow insurers to create telematics products.

The solution enables insurers to gather detailed per-second interval data on driving performance, according to Towers Watson. With the customer’s prior consent, it also offers customers optional value-added services which could in future include automated emergency calls and the tracking of stolen vehicles, the firm added.

Insurers will be able to choose from a range of data collection devices and the service will combine 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.

According to Towers Watson, the combination of the two services will accelerate the pace at which insurers can get new services to market, and at a competitive cost. UK insurance company AIG Europe Limited, part of the international group AIG, has signed up to run a pilot.

“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,” said Duncan Anderson, global head of pricing and product management at Towers Watson.


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