T-Systems digitizes vehicle damage claims for insurance providers

• Digital Drive speeds up vehicle claims management
• Insurance providers can offer attractive services to vehicle owners
• Partnership with tech startup Spearhead

After an accident, it can take several days until the insurance provider has analyzed the damage to the involved vehicles. 

T-Systems and Spearhead, a Zurich-based startup, are now cutting this time to just one minute. The complete claims process is digitized end to end – from accident notification to documentation of damage, and even including claims assessment and generation of repair orders. Digital vehicle claims management for insurance providers is a further element of Digital Drive, the connected car offering from T-Systems. The Digital Drive retrofit solution gives connected functions to new and used vehicles without integrated Internet access.

To digitize the vehicle claims process, the insurance customer's vehicle is connected by a plug on the diagnostics interface. When damage occurs, the insurance provider receives an analysis immediately via a portal. At the same time, the repair costs are calculated immediately and the repair order can be placed in the next step. The insurance customer can provide the necessary documentation of the accident via app. 

This white label product for vehicle insurance companies also features additional value-added services for drivers, such as real-time information about the vehicle status: fuel level, vehicle position, and notifications in case of vibrations or towing, for example. Insurance companies can also use this data as the foundation for usage-based rates, to reward careful drivers. 

Swiss startup Spearhead as partner

This solution is the result of a recently launched partnership between T-Systems and Spearhead, a Zurich-based tech startup that entered the car insurance market in 2015. In Digital Drive, T-Systems supplies an OBD2 adapter, the connected car services and platform, and the cloud infrastructure. Spearhead delivers the claims management software, the portal for vehicle insurers, and the damage documentation feature for vehicle owners. 
Ingo Hofacker, responsible for the Internet of Things (IoT) business at Deutsche Telekom: "Our product makes insurance telematics profitable for the mass market. The combination of our Digital Drive connected car service and the technology from Spearhead makes it possible for us to give insurance holders a retrofit solution with attractive value-added services. At the same time, insurance companies can capture additional savings in repair and process costs after a vehicle accident.

Vehicle claims management in detail: On-board sensor detects accidents

To use connected car functions, car owners have to install an adapter for the vehicle's on-board diagnostics (OBD) system. If an accident occurs, a sensor in the adapter records all the forces acting on the vehicle and, using mobile communications, immediately transmits the data to the secure T-Systems private cloud, where it is analyzed. The administrator responsible is also notified automatically. The web portal indicates which vehicle parts have likely been damaged and how much the repair is projected to cost. To follow up, the vehicle owner can document the circumstances of the accident, the people involved, and specify broken parts – as well as upload photos – all in the app. All data is processed in EU data centers, compliant with strict EU data privacy laws.

The Internet of Things (IoT) is one of the biggest digitization drivers and has arrived in almost all industries. But the challenges are complex. Only concrete empirical values, practical technologies and orientation can help. Deutsche Telekom brings everything for the Internet of Things: We advise, build the networks, manage the devices and ensure security. This is what we want to show you during our IoT week from January 22 – 26, 2018. Follow us on www.telekom.com/iot-2018 and at #IoT2018. 

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