Sagemcom: “Telematics is a disruptive technology”

Sagemcom: “Telematics is a disruptive technology”

What does your company do?
With a turnover of more than €1.4 billion, Sagemcom employs 6,000 people worldwide and is a major leader of high added value communicating terminals. Sagemcom operates in the following markets: broadband communications (digital TV set-top boxes, broadband Internet gateways, residential telephony and multimedia terminals, femtocells), telecom and energy (M2M cellular modules and services, smart meters and energy management) and document management (printing terminals, software and solutions). Our M2M department, part of our energy an telecom activities, is committed to designing and manufacturing dedicated M2M modules for the automotive industry and supporting key customers with extended services, including device management solutions. (For more on M2M, see ‘Telematics and M2M communications: The next step for the connected car’.)

What is your role in the insurance telematics market?
Sagemcom is a technology provider (cellular modules, dedicated OBU design and manufacturing services, support with device management tools).

How important is telematics throughout the insurance market?
Sagemcom considers telematics a disruptive technology, which might change the positioning of many stakeholders in the insurance market and change the related business models. (For more on insurance telematics, see ‘Can telematics reinvent auto insurance?’.)

What is needed for the large-scale success of PAYD/usage-based insurance?
Sagemcom considers that the large-scale success of PAYD insurance will come with confidence in the security of the managed data, the accuracy of the business models (pay less or pay more depending on the risks and usage), and the price of the technology (at the right performance level).

Which trends will impact the industry the most in the coming years and why?
Sagemcom considers that the major trends will be technology integration (improving the performance and decreasing the cost) and the evolution of the cellular networks from 2G to LTE. (For more on LTE, see ‘Will LTE lead the 4G revolution?’.)

How do you view the role of auto OEMs in insurance telematics?
Sagemcom is a technology expert, able to design and manufacture dedicated devices based on customers’ specifications and Sagemcom’s common technologies. This preserves the differentiation of Sagemcom’s customers while maximizing their efficiency to deliver telematics services. Sagemcom’s customers can concentrate on developing their business applications and don’t need to take care of the technology itself.

Where do you see the insurance telematics industry heading in the next five years?
The insurance telematics industry will be boosted by the integration of telematics platforms into vehicles, in first mount. The key challenge will be the standardization of such platforms to increase the business faster.

For all the latest on insurance telematics, join the industry’s key players at Insurance Telematics Europe 2011 on May 4 and 5 in London.

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