Novatel Wireless Collaborates With Discovery Insure for One of the World’s Largest Usage-Based Insurance Deployments
March 09 2016 - 7:46PM
Global sales of telematics-based policies are expected to see a
compound annual growth rate of 80% through 2018 according to
industry analysts Timetric
Discovery Insure, a leading property and casualty insurance company
in South Africa, uses telematics data with incentives, to encourage
better, safer driving. Insurance savings generated by better
drivers having fewer and less severe accidents fund meaningful
client rewards which reduce the ultimate cost of insurance. As part
of their rewards program they offer clients the Ctrack telematics
solution for usage based insurance (UBI) from Novatel Wireless,
Inc. (NASDAQ:MIFI). The program, Vitalitydrive, is one of the
world’s largest deployments of UBI.
“With over 100,000 cars fitted with the Ctrack solution, we have
collected over 4 billion kilometers of driving behavior, making
this one of the largest telematics data sets in the world,” said
Philippa Wild, Head of Discovery Insure Technical Marketing. “The
Ctrack telematics solution allows us to accurately measure driver
behavior. Our research shows that 90% of accidents are caused by a
driver’s actions behind a wheel. With telematics we provide
valuable feedback to drivers on how they drive. We combine this
with powerful incentives to change behavior and reduce the number
of car accidents on roads.”
With Vitalitydrive, Discovery’s driver incentive program,
clients are rewarded with up to 50% of their fuel spend back each
month for driving well. Their metrics show that better drivers, who
are more conscious about their driving behavior, have fewer and
less severe accidents. This creates insurance savings which
Discovery passes back to their clients through rewards.
“Discovery Insure is transforming the insurance industry
business model and we’re pleased that the Ctrack solution is part
of it,” said Sue Swenson, CEO Novatel Wireless. “We are happy
to see that our four-year collaboration is helping Discovery
realize their vision of creating a nation of great drivers in South
Africa and we look forward to continued success.”
UBI, also known as behavioral based insurance, is gaining
traction in North America and in international markets like South
Africa, Italy, and the UK. Telematics technology enables insurers
to offer insurance policies that effectively rate driver
performance based on safety and driving habits through mobile
technology and informatics. According to SMA Research,
approximately 36 percent of all auto insurance carriers in the U.S.
alone are expected to use telematics UBI by 2020.
About Novatel Wireless, Inc.
Novatel Wireless, Inc. (Nasdaq:MIFI) is a leading global
provider of solutions for the Internet of Things (IoT), including
software-as-a-service (SaaS) solutions for the fleet telematics
market. Our innovative products and solutions provide
anywhere, anytime communications and analytics for consumers and
businesses of all sizes, with approximately 158,000 subscribed
fleet vehicles for Ctrack among the Company’s 520,000 global
subscribers. Novatel Wireless is headquartered in San
Diego, California. http://www.novatelwireless.com. @MiFi
(Twitter); LinkedIn
Cautionary Note Regarding Forward-Looking
Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to a variety of matters, including, without
limitation, statements related to the ability of Novatel
Wireless to expand its addressable markets and drive growth in
service revenue and broaden its customer base as a result of the
acquisition of DigiCore, and other statements that are not purely
statements of historical fact. These forward-looking statements are
made on the basis of the current beliefs, expectations and
assumptions of the management of Novatel Wireless and are
subject to significant risks and uncertainty. Investors are
cautioned not to place undue reliance on any such forward-looking
statements. All such forward-looking statements speak only as of
the date they are made, and Novatel Wireless undertakes
no obligation to update or revise these statements, whether as a
result of new information, future events or otherwise. These
forward-looking statements also involve many risks and
uncertainties that may cause actual results to differ materially
from what may be expressed or implied in these forward-looking
statements. For a further discussion of risks and uncertainties
that could cause actual results to differ from those expressed in
these forward-looking statements, as well as risks relating to the
business of Novatel Wireless in general, see the risk
disclosures in the Annual Report on Form 10-K of Novatel
Wireless for the year ended December 31, 2014, and in
other filings made with the SEC by Novatel
Wireless (available at www.sec.gov).
Media Contact
Anette Gaven
(619) 993-3058
agaven@nvtl.com
Investor Relations Contact:
Michael Sklansky
(858) 431-0792
msklansky@nvtl.com
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