Transforming

the auto insurance

industry with
telematics
AT&T M2M Business Solutions

© 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
 Wireless Cloud
Communications

Mobile Apps Command

Center Portal

OBDII Devices

Harness the power What are insurance

of telematics telematics?
Insurance Telematics, or Usage-Based Insurance (UBI), Insurance Telematics enable an insurance provider to
is an innovation insurers are employing to transform utilize the AT&T wireless network to collect machine-to-
their businesses. By leveraging technology and machine (M2M) information to better assess actual
harnessing the power of the “always on” broadband driver risk. Telematics enables the capturing of detailed
network, Insurance Telematics programs are shifting driving information and data such as driving times,
the operating paradigm between the insurer and the locations, speeds, contextual environmental data and
insured. AT&T offers the experience and turn-key vehicle information.
solutions to help companies realize the benefits of
Before Insurance Telematics, insurance companies had
Insurance Telematics at a rapid pace.
no idea how, where, how much, or how fast customers
drove. Agents relied on previous customer claims, DMV
driving records, and general questions asked during the
policy application process to determine costs and
coverage levels. Now, insurers can ascertain a much more
precise picture of a customer’s driving behavior, enabling
agents to write more appropriate policies and offer
rewards or lower rates for safer driving.

2 © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
A win for insurers and
customers
Insurance Telematics offers many measurable benefits
for insurers. The first hard benefit for insurers is fraud
reduction. For example, imagine a fraudulent claim
where an accident is reported by a certain driver at a
certain time. With Telematics, the insurance
investigator can simply look at data to easily determine
a car's location, speed, or even what time an air bag
was deployed. These and other data points can help
reduce the number of fraudulent claims by providing
accurate information to support or disprove a claim.
Next, stickier insurance policies can help reduce churn.
An insurer can create a program that rewards safer
drivers by offering premium discounts for safe driving.
In such a program, driving performance could be
3 © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
regularly reviewed taking into consideration multiple
data points such as the time of day driven, average
speeds on different types of roads, how fast and hard a
car accelerates or brakes, how fast corners are taken,
or many others. By rewarding safe drivers, insurers help
encourage safer roadways for all. Plus, insurers
increase overall profitability by keeping better, safer
drivers in their portfolios.
Additionally, insurers can differentiate risks, reduce
claims, attract more profitable drivers, set more
accurate pricing, set profitable premiums based on
customer driving patterns and implement driver
safety programs.
 Go from trial to Partner with AT&T
full-scale, fast When you choose AT&T as your Insurance Telematics
partner, you'll reap the benefits of our rigorous
AT&T provides a complete, easy-to-use, end-to-end Insurance methodology, experienced teams, and our thorough
Telematics solution that enables insurance carriers to knowledge of the industry. We'll work with you to build a
achieve their goals while providing value to policy holders. reliable, long-term solution.
Collaborate with AT&T to convert a managed trial
implementation into a full-scale Insurance Telematics Connectivity
program designed to get results for your business. Over the past five years, AT&T has invested $98 billion
to provide the best infrastructure for your
connected ecosystem.

AT&T offers:
• High-speed wireless delivery across our
Trial Pilot Launch industry-acclaimed mobile network
• Global roaming in more than 200 countries
• Industry-leading M2M services
• $14 billion per year in network improvements earmarked

• Collaborate, Plan, Develop Supply chain services

• Full Logistics & Ongoing Support AT&T provides a suite of supply chain and logistics services,
• Project Management such as:
• Device Procurement • Order Fulfillment
• Packaging • Shipping

These services allow insurers to focus on what they do best,

Design your program while leaving the details of technology and hardware to AT&T.
This is especially ideal for mid-tier and smaller insurers.

to get results Integration with big data

Insurers will only succeed with UBI if they are able to
Imagine the marketing opportunities that could emerge
extract relevant data from the vehicle and use it for driver
as a result of Insurance Telematics. Insurance Telematics
scoring. While some insurers have their own patented
offer a platform for endless promotional opportunities
processes for driver scoring, others choose to work with
designed to increase revenue and customer loyalty.
third parties. AT&T works with major insurance scoring
Insurance Telematics is transforming the industry from a
companies who are helping to store and analyze the flow
transactional marketplace, with little contact between
of driving data generated by Insurance Telematics.
insurer and policyholder, to a high-touch business in which
customer engagement is considered essential to success.
Partner with AT&T
Work with us to customize a program to meet your exact
needs. AT&T's experts can answer questions such as,
"Should we build or buy?" "Which process should we
automate first?" "How can we use data to offer our
customers better policies?" AT&T professional services
understands the considerations you have concerning
For more information, contact: timing, capital and risk. We are ready to help you get started.
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4 © 2014 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.