The current industry context makes it clear that developments in technology, regulatory change, and the need for differentiation in an increasingly commoditised market have led many auto insurers to assess the opportunity presented by usage-based insurance (UBI). In Europe and North America, awareness of UBI tripled between 2010 and 2013. In the UK alone, telematics based car insurance sales has risen by more than 60% since June 2012.
The scope of the agreement is extremely wide and designed to exploit state of the art existing technology, joint R&D to create new analytics algorithms and services, and a shared go-to-market to selected Insurers.
The guiding principle of the agreement is to facilitate accelerated ramp-up of Telematics into the Insurance mainstream, by creating and proving Telematics value to Insurers and Consumers. Insurers will be supported in their evolution by getting more consumer insight, improved CRM, more accurate and individualized pricing and a more predictable risk base; Consumers will get more tailored pricing, improved Safety, additional Value Added Services, all delivered at a better price/quality ratio.
“Octo’s data-centric DNA, its global leadership, and its vision of leading the Insurance Telematics revolution makes Octo the perfect partner for us in Insurance, an industry where SAS is actively present and has supported its evolution across several years.” said Marco Icardi, CEE Regional VP of SAS. "We are extremely excited to leverage Octo’s award winning telematics platform to help build a robust telematics program utilising SAS analytical solutions.”
“To date, Octo’s success has been built on the capability to understand insurance companies' and Consumers’ needs,” said Fabio Sbianchi, CEO, Octo Telematics. “This means conceiving, designing and implementing services that are able to: reward good driving behaviour, improve insurers claims management process efficiency, reconstruct accident dynamic and accelerate the claims indemnification process. The partnership with SAS is a fundamental acceleration for Octo strategy; together with SAS we will build a ‘one-of-a-kind’ Platform which we believe will be referenced as the market benchmark from leading Insurers and car makers around the globe.”
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