Building Innovative Solutions for Usage Based Insurance

Lowering Costs and Strengthening Customer Relationships with UBI Solutions

Auto insurance is undergoing a massive change. With more consumer choice and competition than ever before, insurers need to better understand risk to price policies competitively. The underwriting model that’s been used for decades—using broad demographic characteristics like a driver’s age, gender or credit score—is giving way to a new usage-based insurance (UBI) model, where risk evaluations are made based on data generated from real-world driving behavior.

Speed, acceleration, average time and distance driven, and other parameters can all be collected by a small, reliable onboard unit (OBU). These metrics can then be used to assess premiums much more accurately than demographic profiling, as well as to target marketing programs and gain deeper insight into customers. 

For insurers, having a telematics link to a driver means:
  • Reduced fraud as a result of having more and better data when assessing claims
  • Better driving behavior, as drivers are motivated to continually practice and improve driving habits 
  • Deeper customer relationships, with opportunities for more frequent and positive interactions (e.g., communications after an accident, updates on driving behavior and premiums), instead of just issuing bills and processing claims 

UBI can also empower insurers to participate in a broader value chain around in-vehicle services. Once telematics service providers (TSPs) and original equipment manufacturers (OEMs) connect to the vehicle, they can deliver a wide range of connected car services: emergency assistance, remote diagnostics, Internet and entertainment, real-time location-based information and much more.

Cellular machine-to-machine (M2M) connectivity can play a vital role in UBI and other automotive Internet of Things (IoT) solutions. With the ubiquitous reach, proven reliability, and low deployment and maintenance costs of cellular communications, TSPs and OEMs can deliver UBI and other in-vehicle services securely and cost-effectively. 

With more than 2 million modules shipped for dedicated insurance telematics applications, and an advanced cloud platform for device management and data collection, Sierra Wireless is the market leader in UBI. We help TSPs, OEMs and insurers worldwide use raw telematics data to fuel innovative new services for their customers. From intelligent embedded modules and connectivity to cloud platforms, professional services and more, we can provide complete device-to-cloud IoT solutions.

Customer Story

Octo Telematics Makes UBI Easy for European Insurers

Octo Telematics, the global brand leader in providing insurance telematics service, is working with Sierra Wireless to support its innovative UBI solution for European insurers. Octo’s Super Easy Telematics Box is the first telematics OBU that can be installed by the end-customer in minutes, eliminating the need for professional installation.
White Paper: Capturing the Usage-Based Insurance Opportunity

Learn about the evolving UBI market and the possibilities for insurers to participate in a new and lucrative value chain around connected-vehicle services.

Download the white paper

“To increase adoption rates, we saw the need for a solution that would be simple and cost-effective for insurers to provide to their customers. Sierra Wireless stood out with a high level of expertise in telematics and wireless communications and a strong global position to support our growth.”

Jonathan Hewett, Group Chief Marketing Officer
Octo Telematics

Customer Story


Sierra Wireless device-to-cloud technology enables new telematics solution for Arval

Arval, a leader in full service vehicle leasing, fleet management, and usage-based insurance owned by BNP Paribas, has selected Sierra Wireless device-to-cloud technology to build its new global telematics solution.

Arval selected Sierra Wireless because the AirVantage cloud provides an accelerated development path – the cloud platform was already built and integrated with AirPrime embedded modules, and was able to easily connect to third-party application servers and their own web applications. With the wireless integration and management already covered, Arval was able to focus on the portion of the solution that offers value and differentiates it from competitors. In addition, AirVantage leverages standard device protocols, making it compatible with a wide variety of connected devices and future-proof in terms of compatibility with additional devices and services as Arval expands its service offering to its customers.

Arval Logo 


Technology Overview


Leveraging UBI Solutions

To capitalize on the growing market for UBI and other automotive IoT services, TSPs and OEMs can’t rely on the single-purpose OBUs of the past. They need smart, flexible wireless M2M solutions that have enough intelligence at the edge to support a range of applications, and are easy to update and expand.  

Sierra Wireless’ Legato® embedded application platform makes it easy to build, run and connect new automotive IoT services. Legato provides a Linux-based embedded platform with broad support from the open-source community and a full sandbox to develop innovative applications. So insurers and their TSP and OEM partners can easily deploy and evolve UBI and other in-vehicle solutions. Even if they start with a more basic UBI service, they can continually add new in-vehicle services over time through software updates, instead of having to replace hardware deployed in the field. 

Sierra Wireless has been helping automotive industry customers, TSP and insurance companies build secure, highly reliable wireless M2M solutions for many years.

We provide: 

  • Embedded Solutions: AirPrime Modules are simple to integrate, easy to program, secure and scalable from 2G to 4G. And they are supported by easy-to-use development tools, software suites and expert specialists to speed solutions to market and reduce total product costs.  
  • Cloud and Connectivity Services: Our cloud services provide the simplest and most scalable way to securely retrieve, store, analyze, and integrate data to build new value in IoT telematics applications. They accelerate time-to-market, reduce risk, and lower deployment and maintenance costs with over-the-air monitoring and upgrades of telematics devices.

Related Resources