This educational guide introduces the benefits of enabling connectivity as a feature to your Usage-Based-Insurance (UBI) product and solution. It recommends the special considerations to account for when selecting a connectivity choice out of a range of options. Finally, it provides a check list of questions to help you make your final connectivity selection.
Traditionally, UBI starts from the driver installing a device fitted to their vehicle. Such a device is most common in fleet management and is composed of a box with GPS receiver, a SIM and module for connection to cellular networks, some processing capability, sometimes a short-range radio device such as Bluetooth and power electronics to take from the vehicle battery. However, with additional connectivity options such as low power wide area (LPWA), the choice of connectivity for UBI and its value chain becomes a critical business decision dependent on the specific cost, performance and benefit intended.
UBI has its unique characteristics that make the selection of connectivity skewed towards LPWA networks. LTE-M is optimal in terms of function, cost and benefit, especially as it is optimised to enable national and international roaming on reliable and secure licensed networks. 1NCE recommends making these 7 connectivity characteristics as a check list to guide you in making the right connectivity decision. Find these 7 characteristics and more information in the Usage based Insurance Download.