Telefonica to support Germany’s first insurance telematics service

Spanish operator Telefonica claims it is supporting the first insurance telematics service to be launched in the German market.

The operator said its Spanish subsidiary has signed a deal with Sparkassen DirektVersicherung (Dusseldorf, Germany) – a part of Sparkassen Organisation, Germany’s largest financial services group – to support an insurance telematics service due to be launched this month.

According to Telefonica’s (Madrid, Spain) statement, the service will include security features and allow customers to save money on car insurance.

Spanish operator Telefonica claims it is supporting the first insurance telematics service to be launched in the German market.

The operator said its Spanish subsidiary has signed a deal with Sparkassen DirektVersicherung (Dusseldorf, Germany) – a part of Sparkassen Organisation, Germany’s largest financial services group – to support an insurance telematics service due to be launched this month.

According to Telefonica’s (Madrid, Spain) statement, the service will include security features and allow customers to save money on car insurance.

Telefonica also expects the insurance offer to encourage safer driving – so-called usage-based insurance services are set up to monitor driving habits and provide more favorable deals based on the information they gather.

Accordingly, drivers opting for the service will need to have a telematics box installed in their vehicles.

As well as notifying emergency services in the event of a major accident, the box will provide feedback on driving behavior and offer free insurance for a three-month period to the best driver each month.

The box also offers a tracking service in the event the car is stolen.

News of the service follows Telefonica’s launch of its Insurance Telematics product in Germany earlier this year.

In its domestic market, Telefonica has also partnered with insurance company Generali Seguros (Trieste, Italy) to provide similar telematics deals.

“We are seeing rapid growth in this market across Europe as consumers recognize the benefits of telematics in helping them to save money on their insurance premiums,” said Carlos Morales, M2M director at Telefonica Digital. “Through partnerships like this we can work together with the insurance industry to help them leverage the significant benefits this technology can bring to their businesses.”

Telefonica says the Sparkassen DirektVersicherung service will be available to German consumers from this month and make a range of different premiums available.