The case for UBI: Revenue opportunities for insurance MNOs

Mobile Network Operators
The case for UBI: Revenue opportunities for insurance MNOs
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Key Takeaways

The connected world is rapidly changing, and mobile network operators (MNOs) are looking for ways to capitalize on the coming arrival of 5G and the explosion of the Internet of Things (IoT) to open up new B2B and B2C revenue opportunities.

And many of those opportunities will center around the growing fields of driver safety and automotive insurance. But what will these new revenue opportunities look like, and what will MNOs need to do to prepare to make them viable business prospects?

Of course, while B2C opportunities are important, mobile network operators (MNOs) will find larger revenue streams in B2B. And of all the B2B opportunities for MNOs, one of the biggest is in automotive insurance.

Insurance companies are looking to expand their behavior-based insurance and usage-based insurance offerings. Currently, most auto insurers score leads using a series of proxy variables. Age, location, and daily mileage can give insurers an idea of how safe a driver is.

The bottom line is insurers need better data to offer better experiences and rates. If they can gain access to these models, they can offer safe drivers better rates while reducing risk.

And that’s where MNOs come in.

Mobile Network Operators for Insurance Lead Generation

We’ve talked a lot about using telematics data for insurance lead generation at Zendrive. But this is one business opportunity network operators don’t want to miss.

With smartphone-based telematics, MNOs can create reliable, accurate profiles based on real data.

These insights will help insurers protects against unattractive risks. It also allows them to create personalized experiences that build loyalty and customers. 77% of insurance customers say customized promotions encourage them to buy. 68% of insurers say targeted promotions are a key driver of improved online sales.

Equipped with driver behavior models provided by MNOs, insurers will be able to unlock new channels for usage-based insurance (UBI). Even more, the data would allow them to present hyper-personalized advertisements to the right drivers.

Above all, that’s smarter, higher ROI insurance lead generation. And with the right telematics platform, MNOs can start offering it today.

MNOs for Automated Insurance Claims Processing

Another opportunity lies in the ability to offer automated claims processing to insurers.

Like lead generation, today’s claims process is painful for both insurers and consumers. The current model looks something like this:

“An accident occurs. Time passes, often a week or more. The customer finally files the claim. The customer provides information about the accident based on their best guesses. Maybe they’re telling the whole truth, or maybe they’re not. If the claim is even a bit complex, the insurer sends out an adjuster. The parties file a revised claim.”

If the insurer is lucky, that’s the end of it. If not, the next step is costly litigation.

But with telematics data provided by MNOs, insurers can take the guessing out of claims. The data shows them exactly what happened: who was speeding, who was on their phone, and more. Over time, this becomes real, actionable information.

Plus, this information can be transmitted to the insurance company instantly and automatically. No need to wait for the customer to file a claim.

This also helps insurers offer customers a better claims experience. Claims get resolved faster, and the data protects good drivers against fraud. Customers get back on the road faster, and they love their insurer for it.

And suddenly, insurers are beating down the doors of any MNO that can provide it.


MNOs have billions of connected devices at their disposal, all gathering data. And that data means enormous business opportunities.

By partnering with Zendrive, MNOs can develop new B2B and B2C revenue streams that can bolster their bottom lines well into the arrival of 5G.

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