"This strategic partnership with CMT further enhances Discovery Insure's leadership position in the growing industry of behaviour-based short-term insurance,” said Adrian Gore, chief executive officer (CEO) of financial services provider, [DATA DSY:Discovery Limited].
“While insurers are using telematics technology to monitor and track driving behaviour with discounts on premiums to policyholders, Discovery Insure harnesses both telematics technology and behavioural economics to promote safer driving, with exceptional results for both our clients and the company."
(READ MORE: Discovery posts excellent results)
CMT, a leading telematics technology provider in the United States, has developed patented technology that can be embedded in mobile applications to allow users to interact with massive amounts of sensor data processed from smartphones, mobile devices and cars.
According to ABI Research, a US based market research and intelligence firm, the number of monitored drivers worldwide with increase from 1.85 million in 2010 to 89 million by 2017.
(READ MORE: Green light for car tracking device technology)
William Powers, president and CEO of CMT, added that the company is set on a global expansion strategy.
"We are focused on continuing to expand our global footprint and align with companies that share our vision – to make better drivers and safer roads. Through a strategic alliance with Discovery Limited, we can collectively shape the future of the behaviour-based insurance industry,"
Discovery stated that based on a report by the World Health Organisation, more than 1.24 million road traffic deaths occur each year, the ability to change driving behaviour through accurate measurements and incentives has the potential to significantly reduce mortality rates over the long term.
(READ MORE: Technology drives down insurance fraud)
Anton Ossip, CEO of Discovery Insure, explained that over the past year, the company has worked closely with CMT to develop a smartphone app that allows anyone with a smartphone to monitor their trips and driving behaviour through telematics technology.
“This technology has incredible potential for gathering significant and relevant data from a large group of drivers to learn more about the behaviours that contribute to road fatalities and injuries."
(READ MORE: Short term insurance is well capitalised: SAIA)