MTN has launched what it believes is South Africa's first commercial connected car service from a mobile operator with a solution that monitors driving behavior and statistics to enable usage-based insurance.
The solution, developed by MTN Business in conjunction with technology partner Huawei, involves the installation of an on-board diagnostic (OBD) device that can feed information to the driver’s mobile phone and to a data center for use by insurance fleet management companies. The solution monitors driving statistics, driver behavior and the state of the vehicle, enabling insurance companies to offer usage-based policies that are based on collected and analyzed data.
The service will initially use MTN’s 3G and 2G networks for connectivity but will ultimately use the NB-IoT network that the operator is building out with Huawei. (See MTN Puts Its Faith in NB-IoT, Vodacom to Follow.)
According to ITWeb, Melao Mashale, senior manager of Enterprise IoT Solutions at MTN Business, noted that the solution enabled insurers to assign drivers a rating and, as a result, offer incentives for better driving that should, in theory, result in fewer accidents and a reduced number of claims.
MTN has 1,000 OBD devices to offer an insurance company prepared to take usage-based insurance to the mass market.
— The staff, Connecting Africa