Telefónica Spain and Generali Insurance launched a car-tracking device with the aim of reducing the cost of insurance by monitoring driving habits.
The new 'Pay as I Drive' service uses machine-to-machine connectivity to collect data for each car journey and then calculates the insurance premium based on driving skills. The two firms say that it can save drivers up to 40 per cent per year in insurance charges.
The M2M module, which was partly developed by Telefónica Digital, monitors how many kilometres customers drive, whether they stick to speed limits, what time of day they usually drive and where they travel.
Customers will have access to their driving data and the car's location via a mobile app, said Telefónica in a statement.
Both companies say that the collected data will be made anonymous and secure using a cloud management service. Generali added that the new M2M-based service could be used to provide roadside assistance, emergency accident support and other mobile-related services.
This move by Telefónica is part of the operator's efforts to expand into revenue-generating technologies other than voice, particularly M2M services for the healthcare and automotive sectors.
- see this Telefónica statement
- see this Reuters article
Telefónica Digital CEO: M2M is our fastest growing business
M2M market could find a niche in home monitoring systems
Deutsche Telekom sees connected car driving M2M market in 2013
Report: Cellular M2M connections will soar to 326M by 2016
Analyst: Germany to decide Europe's smart metering future