Deutsche Telekom and DriveFactor offer insurers complete M2M solution for usage-based insurance

London UK – European Telematics Conference – May 8 – Deutsche Telekom and DriveFactor are today announcing a complete usage-based insurance (UBI) solution that enables motor insurers to offer their customers special benefits for driving safely. The offer is based on a machine-to-machine (M2M) solution that evaluates driving behaviour.

For the insurer it is a turnkey solution—from the tracking module and SIM card for the insured person’s vehicle to the platform services and statistical evaluation of driving data. The UBI or pay-as-you drive (PAYD) insurance concept is equally attractive for insurers and their customers. Those insured benefit from the reduction in the premium paid in return for taking part in the programme. Insurers can automate processes such as first notification of loss on the basis of the M2M solution and thereby respond faster to insurance claims. Furthermore, the turnkey solution is provided at a fixed monthly rate.

Jürgen Hase, Head of Deutsche Telekom’s M2M Competence Centre says: “Jointly with our partner DriveFactor, we offer insurers a complete single-source UBI service—from the hardware to integrating evaluated driving data into their IT systems”.

DriveFactor was shortlisted twice for this year’s Telematics Update Awards – as a 2012/13 Industry Newcomer and in the Best Insurance Telematics Product or Service Launch category.

“In cooperation with Deutsche Telekom we can equip insurers around the world with our telematics technology,” says DriveFactor’s CEO, Steve McKay.  “We specialise in usage based insurance programs which are easy to implement and consumer oriented.”


The ease of deployment of the self-installed devices and smartphone apps developed by DriveFactor accelerates the product’s time to market. Motorists can fix a device (compatible with most cars manufactured since 1996 in North America and since 2001 in Europe) to their car’s 16-pin OBD-II diagnostic connector themselves. With the aid of several sensors and a GPS receiver the device recognises, for example, how the car accelerates and brakes and takes bends or curves. After the journey the device transmits the data it has collected to a DriveFactor server via the cellular phone network. The server evaluates the data and relays it to the insurer.

Customers can view their personal data and evaluation on web and mobile portals. That makes individually reduced insurance premiums transparent and comprehensible. They also receive feedback on their driving that motivates them to drive safely. To protect the customer’s data, DriveFactor relays vehicle information as per the terms and conditions of the person’s agreement with the insurer. This is typically information such as mileage, braking, acceleration, and time of day. DriveFactor also relays a total driving score to the insurer which can be used to calculate the savings earned by safer driving.

In Germany the market consists of an estimated 40 million vehicles and in Great Britain an estimated 25 million vehicles.


Deutsche Telekom is one of the world’s leading integrated telecommunications companies with more than 132 million mobile customers, over 32 million fixed-network lines and 17 million broadband lines (December 31, 2012). The Group provides products and services for the fixed network, mobile communications, the Internet and IPTV for consumers, and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in around 50 countries and has 230,000 employees worldwide. The Group generated revenues of EUR 58.2 billion in the 2012 financial year – more than half of it outside Germany (December 31, 2012).


9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, iot home automation is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

The doctor will see you now – by teleporting into your home!

Posted on: September 20, 2021

The National Robotarium, hosted by Heriot-Watt University, is pioneering intelligent sensing and tele-presence robotic technology to allow health practitioners to remotely assess a person’s physical and cognitive health from anywhere in the world.

Read more

Nozomi Networks and Tripwire announce strategic partnership

Posted on: September 17, 2021

Nozomi Networks Inc., the provider of OT and IoT security, and Tripwire, a global provider of security and compliance solutions for enterprises and industrial organisations, announced they have partnered to help organisations lower cyber risk with consistent security controls that span their IT, OT and IoT environments.

Read more