Usage-based insurance products rely on technology that gathers data and provides insights for insurers and customers. There are seven main types of data gathering technology:

  1. Blackbox
  2. OBD device
  3. OBD + Smartphone hybrid
  4. Smartphone only solution
  5. Bluetooth beacon enhanced (BLE) smartphone solutions
  6. Windscreen-mounted devices
  7. 12 V socket device

Telematics technology can provide a lot of value to insurers and its importance will only grow in the future.

Aftermarket telematics devices are a preferred option when it comes to meeting the actuarial expectations on data reliability and in-car telematics technology importance is on the rise. 

Smartphone-based UBI Products

The most accessible form of UBI products for the customer, as inquiries just an app-download, and insurer, as it gathers data in one place and is a smartphone-based communication tool.

Smartphone apps are facilitating several significant shifts, including:

  • challenging traditional insurance business models and profit schemes
  • transforming the customer relationship through automation during quoting and claim submission
  • expanding the range of insured products through micro-, on-demand or parametric insurance 
  • integrating insurance coverage into existing services (banking, navigation)

Nonetheless, smartphone-based solutions continually gain on adoption and popularity for several reasons, just some of them being good economics, independence from the car manufacturers, and the mere fact that you need a smartphone in any of the above scenarios to ensure communication back to the customer.

A smartphone is just one of the tools for usage and behavior data collection. However, thinking about a customer relationship, communication and engagement, a smartphone is the best tool to achieve these business goals.

Our technology helps achieve insurers goals

Our goal is to assist insurance companies in achieving lower claims through self-selection and behavior change. Our clients have reported up to 15% lower claims by using the Amodo platform. However, to get the return on investment only by harvesting that one particular business aspect takes a lot of time and effort.

That’s why these 3 business aspects should not be overlooked:

New product creation

The capability to create new products and thereby differentiate, address new market segments and drive more revenues.

Smartphone-based UBI products enable targeting infrequent drivers with pay-as-you-drive (PAYD) models to only pay for the driven distance. New and insecure drivers can be targeted with the pay-how-you-drive (PHYD) model, where they collect safety scores based on their driving skills and get regular reports on how they’re doing.

Customer engagement

Engage with the customer to collect more data, learn about their personal needs and habits, and consequently create higher loyalty by addressing them individually through personalized products and services.

For example, the PHYD model has various tasks for its users that collect badges and improve their driving at the same time!

Customer communication

Address the engaged customer base through the smartphone channel to drive up-sell and cross-sell insurance products and services and drive more revenues.

When it comes to the subject of driving more revenues through up-sell and cross-sell, smartphone data becomes essential. Through smartphones’ data, insurance companies can learn about their users’ customer journeys even after leaving their cars in a parking lot. This is why a smartphone, even as a data collection tool only, has more value than a telematics box ever will. A telematics box connects you with the car; a smartphone connects you with the customer.

Also, in case of an accident or emergency, the insurer can be automatically alarmed and in the position to call for more help or road assistance. This way, the insurer strengthens the customer-insurer relationships and brings it to a new, friendly level.


For more information on how we can help you create customer relationships, fill out the form down below:

Leave a comment

Your email address will not be published. Required fields are marked *