Accelerating your UBI strategy

June 5, 2014 Ali Murtaza

Given all the buzz about M2M technology and IoT (Internet of Things) it’s no surprise that many companies are investing heavily in figuring out how to leverage sensors, devices and assets to enhance their business processes, improve their core operations and generate new revenues.

Within M2M, applications in industries like manufacturing, oil and gas, and healthcare come to mind, but the concept actually expands across virtually every industry. In particular, M2M is currently in the news as revolutionizing auto insurance with the launch of usage-based insurance (UBI) solutions around the world.

By accessing vehicle and driving history information, M2M technology provides multiple benefits to insurers by lowering underwriting risk and allowing them to offer lower premiums for good drivers, and value-added services based on the vehicle data. Insurers can attenuate premiums based on driver behaviours (e.g. hard braking, speeding) and driving results (e.g. distances driven).

While UBI was previously launched in some US markets, Canadian insurance companies like Industrial Alliance, Desjardins and The Co-operators have also launched initial UBI offerings with, ostensibly, the hope of gaining a competitive edge in the market.

While insurers are launching their own solutions into the market, the key challenge emerging is convincing drivers and policyholders to adopt the solution by offering enough value to mitigate privacy and other concerns. It’s becoming clear that discounted premiums alone may not be sufficient to acquire or keep customers long-term. Additional value-add services and applications, and being able to leverage vehicle or smartphone information is becoming critical to consumer adoption.

A well-chosen, flexible M2M\IoT software platform is a key success factor in delivering a comprehensive portfolio of UBI and value-added applications that will attract customers and keep them engaged. Some examples include:

  • Summarized driver behaviours, tendencies and savings to-date with tips on how to save more and improve driving behaviour
  • Maintenance warnings and education
  • Vehicle theft monitoring and tracking
  • Automatic emergency dispatch depending on the severity of the accident


In addition to developing a variety of insights into what consumers will demand with a UBI offering, we’ve built relationships with industry-leading M2M partners offering sensors, devices, middleware, connectivity and security. And we’ve invested in building accelerators for location-based services, analytics, personalization and notifications that allow us to design, develop and bring innovative M2M solutions to market quickly and cost effectively.

Contact us today to discuss how we can leverage our expertise in improving your business or industry – we’d love to hear from you!

As one of Architech’s Sales leaders, Ali is passionate about driving innovation, results and customer satisfaction for our clients. Connect with Ali via LinkedIn or Google+.


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