What’s New in the Transportation Vertical · • Self‐installed OBD‐II device tracks mileage,...
Transcript of What’s New in the Transportation Vertical · • Self‐installed OBD‐II device tracks mileage,...
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What’s New in the Transportation Vertical
Presented by:Mike Ueland, Telit Wireless SolutionsVice President and General Manager,North America
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• Government driven mandates in Brazil and Europe• Automotive OEMs designing 3G platforms to support infotainment options
• Fleet applications tracking driver behavior• Low cost tracking devices used for PAYD and vehicle financing
• Impact of electric vehicles (EVs) on transportation ecosystem
• Technology is starting to meet container tracking requirements
Trends in Transportation
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Regulatory Changes ‐ eCall
• Project of the European Commission intended to bring rapid assistance to motorists involved in a collision anywhere in the European Union
• Employs a hardware black box installed in vehicles that will wirelessly send airbag deployment and impact sensor information, as well as GPS coordinates to local emergency agencies
• As of 2009, the European Commission expects implementation by 2014
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• Represents the largest growth potential• About 50 million new cars sold globally in 2009 and only 5% of them were equipped with OEM telematic systems
• Legislation such as the eCall mandate in Europe, resolution 245 of the Brazilian government and local initiatives in China create a huge market potential (by 2014 most new cars will be equipped)
Consumer Automotive Segment
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Pay as you drive (PAYD) means that the insurance premium is calculated dynamically, typically according to the amount you drive.
Usage‐Based Insurance (UBI)
Progressive My Rate Program
• Voluntary program in 22 states
• Self‐installed OBD‐II device tracks mileage, time of day, sudden acceleration & deceleration
• Consumers eligible for 15‐40% discounts off rates
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• Benefits to the insurance company include better alignment of insurance with expected risk and improved customer segmentation
• Consumer reductions in rates by 15‐40%
• Potential for reduction in driving will result in less congestion. reduced emissions, and less wear & tear on transportation infrastructure
• Higher‐risk drivers pay more and have incentive to change driving patterns, leaving roads more safe
• Ability to offer other types of value‐added services
Benefits of PAYD/UBI
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• Prepaid insurance (usage based or not) charges for future rather than past risk, and inevitably predicts some drivers' risk imprecisely.
• Could charge a driver who speeds, but otherwise drives in a safe manner, more than a slower driver who changes lanes abruptly, or drives in an inattentive or careless manner.
• Some systems (but not all) use continuous GPS tracking of vehicles, which may constitute an unacceptable infringement on customers' privacy.
Pay As You Drive – Drawbacks
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Questions and Answers
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