Sprint introduces usage-based insurance services for auto insurance industry

As usage-based insurance (UBI) gains more momentum in the United States, wireless carrier Sprint announced that it is joining the pack.

Sprint will market its integrated, end-to-end usage-based insurance services to the U.S. auto insurance market so they can offer turn-key trials and pilot projects to their insureds.

Sprint’s Integrated Insurance Solutions uses a cloud-based system that collects driver behaviour data sent from an in-car device over the Sprint wireless network. Sprint said the cloud-based system analyzes the data with driver scoring software that enables insurance carriers to improve driver risk assessments, reduce costs and improve profitability.

In addition to “pay as you drive” programs that provide discounts to consumers based on driving behavior, insurance carriers can also offer their customers value-added services such as Web-based tools that let them monitor their vehicle health, get tips on how their driving behavior can be adjusted to be more fuel efficient and even monitor their vehicles’ location.

The wireless carrier has already delved into UBI solutions with Esurance. The two companies partnered to launch a UBI pilot program for policyholders in Arizona. Based on the success of that program, Esurance recently launched its first UBI offering for consumers in Texas.

“Partnering with Sprint on usage-based insurance is helping Esurance to offer consumers discounts of up to 30 percent based on their own unique driving habits,” said Chris Henn, managing director-Product, Esurance. “Our embrace of UBI fits with Esurance’s approach to using the latest technology, and is a great fit for our customer base of self-directed, tech-savvy customers.”