Sprint Launches Integrated Insurance Solutions: This is What "Machine to Machine" (M2M) Looks Like

Sprint will market "usage-based insurance" (UBI) services designed specifically for the auto insurance industry, in a prime example of what machine-to-machine (M2M) services look like, why they add value, and how they can become a primary revenue growth driver for mobile service providers.

Sprint says it is the first wireless carrier to offer a low-cost turnkey trial program for insurance carriers to start their own trials and pilot programs.

"Integrated Insurance Solutions from Sprint" will give insurance carriers the ability to offer customers personalized discounts based on their driving habits, the company says.

The vehicle is fitted with a small device that easily plugs into the diagnostic port. It captures vehicle information and driver behavior data which is transmitted over the Sprint wireless network.

A cloud-based system analyzes the data with driver scoring software that enables insurance carriers to improve driver risk assessments, reduce costs and improve profitability.

M2M services use mobile networks to support applications where sensors communicate with servers, for some business purpose. As person-to-person accounts reach saturation, and "everybody uses a smart phone," M2M is expected to provide a key way of creating new services using mobile networks, without the need to sell additional mobile connections to people.