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TIM and Octo Telematics launch TIM BabyPad, a device to detect when a child is left in a car seat

The two companies sign agreement to develop innovative connected-car solutions 

Rome, 19 December 2019 

TIM and OCTO Telematics have signed a partnership agreement to develop data-driven solutions for vehicles not yet connected to the mobile network. The aim is to gradually extend the potential offered by digital services to all vehicles on the road, from public transport to company cars. 

The agreement between the two respective market leaders provides for the creation of innovative products in the connected car and mobility sector, making cars ‘smart’ by connecting them to the mobile network and enabling access to new on board applications for smart navigation. 

In particular, functions will become available – delivered over TIM’s 5G network – for vehicle and passenger safety, assistance with predictive maintenance and remote vehicle management, insurance based on driving style, theft protection and entertainment solutions. 

The first step of this important partnership is TIM BabyPad, a Bluetooth-enabled device to detect whether the child is in their car seat and make sure they are not left unattended. The App connected to the TIM BabyPad detects whether the child is in their seat and, if the parent gets out of the car, the smartphone sounds an alarm. If the alarm is not turned off, text messages will be also sent to pre-associated numbers with GPS coordinates, preventing any dangerous situations. 

TIM BabyPad will be on sale in the run-up to Christmas at all TIM stores and on the website at the highly attractive launch price of €59.90, making it an ideal gift option for all families with children under 4 years old. 

“TIM has always been committed to developing innovative services to improve the quality of life and safety of families and citizens,” said Elisabetta Romano, Chief Innovation & Partnership Officer at TIM. “This partnership with Octo Telematics allows us to offer our customers the best possible solutions, which are easy to use and integrated into the wider development of the IoT ecosystem, also by leveraging 5G. The latest-generation network will enable pervasive connectivity, in turn having a significant impact on the development of increasingly eco-friendly and efficient smart cities. The initiative confirms TIM’s commitment to making innovative and easy-to-adopt services available to as many people as possible.” 

Nicola Veratelli, Chief Executive Officer of OCTO Telematics, said: “We are proud to have started this partnership with TIM. Developing connectivity in the automotive sector is one of the main innovations that will make it more and more possible to offer added-value services and benefits for drivers. In this context, our ability to analyse data and make it accessible helps to ensure safe mobility, which is a fundamental value for us and our partners.” 

TIM Press Office  +39 06 3688 2610  Twitter: @TIMnewsroom 

OCTO Telematics  Adriana Zambon  m: +39 339.3995640 

2019: The Year of Digital Insurance


Digital insurers continue to enhance the insurance value chain with more intelligent and automated decisions. 2018 saw many able to improve their combined ratio through analytics-driven process optimization, operational improvement, and predictive capabilities. For 2019, we expect this trend to further accelerate as digital transformation continues to gain momentum and priority, resulting in more focused strategies with access to more resources and budget.


In a recent Gartner survey conducted with more than 150 insurance CIOs, “digital transformation has emerged as the most common top strategic business priority among global insurance CIOs”. This is up from second place reported in the same survey conducted a year ago. For the last few years, many stakeholders have witnessed this trend unfolding, but the excitement and momentum has been accelerating during the last 12 months. According to the Gartner Survey, “data and analytics continues to be the most commonly mentioned game-changing technology among insurance CIOs; however, artificial intelligence (AI) has moved to second on the list for 2018 and 2019. Focusing on how to build data mastery throughout the value chain is a critical strategic priority for most insurance CIOs.” The report further states, “During the last 12 months, Gartner has seen great interest in the use cases and application of AI for many tasks, including chatbots for customer service, underwriting assistance platforms, and AI for no-touch claims processing.”

2019 will be a year of innovation across the insurance sector, with many companies accelerating their digital maturity despite cultural challenges or technical challenges associated with legacy systems. With digital maturity will come the better use of data and more advanced analytics that provide better insights for decision making. We will also see the pockets of innovation found throughout insurance companies start to converge, such as scoring algorithms for usage-based insurance (UBI) extending beyond the auto insurance vertical and product line. Ultimately, increased digital maturity and innovation convergence will help insurers meet their underlining objectives for the year.


At Octo, we continue to support insurers through their digital transformation. No matter what stage the insurer is in their digital maturity, our insurance-focused breadth of services significantly reduce the time-to-market and increase return on investment (ROI).

Octo’s insurance IoT platform is built on four pillars:

  • Insurance-specific: Enable the application of IoT data to critical insurance-specific uses, including risk management, claims management, and customer management.
  • Fully modular: Every aspect of the platform can be leveraged individually or as part of a comprehensive solution, allowing insurers to leverage in-house solution or platform capabilities as needed.
  • Extensible: Platform development tools, extensive APIs, and our partner ecosystem allow insurers to extend the value of the platform, explore new use cases, and connect new lines of business.
  • Device agnostic: Respond to customer needs and market trends through the platform’s open architecture and sensor-agnostic plug-and-play device model, allowing us to ingest data from any source.

Octo’s insurance IoT platform, uniquely links the characteristics of a horizontal IoT framework with pre-built vertical use cases for insurance, helping insurance companies accelerate their digital evolution, drive revenue growth, and minimize claims. Octo’s insurance IoT platform has been cited in Gartner’s paper “How to Achieve Digital Business Excellence by Mastering the Pervasiveness of Integration” published in December 2018 (ID G00373656).

Octo’s insurance IoT platform is designed to be truly device agnostic, supporting Octo devices, third-party and mobile devices, and multiple data sources that continue to develop with our enlarging partner ecosystem. Complexities and compatibility are fully maintained by the platform through sensor normalization, before value propositions such as data management, advanced analytics, CRM & Digital (including smartphone as UX) service multiple vertical business lines (see Figure 1).

Figure 1 – Octo’s Insurance IoT Platform Overview

About Octo Telematics

Octo is the number one global provider of telematics and data analytics solutions for the insurance industry. Founded in 2002, Octo is one of the pioneers of the insurance telematics industry. Today, Octo is the largest and most experienced insurance telematics company in the world, transforming auto insurance through behavioral, contextual and driving analytics for more than 100 insurance partners. Octo has more than 5.6 million connected users and the largest global database of telematics data, with over 228 billion miles of driving data collected and 456,000 crashes and insurance events analyzed.

Octo is headquartered in Rome, with offices in Boston, London, Stuttgart, Madrid, and Sao Paulo. To find your local office, please visit

Research Attribution:

Gartner 2019 CIO Agenda: Insurance Industry Insights, Kimberly Harris-Ferrante, 15 October 2018

The changing landscape of telematics data collection

How insurers collect telematics data is changing

At the end of 2018, Octo partnered with Wells Media to conduct its second state of insurance telematics survey. We surveyed 144 senior managers and executives of US property and casualty insurance carriers to find insights into how they are using telematics, how the market is evolving, and the challenges and benefits an insurer can expect when implementing telematics.

Perhaps the most striking shift between 2016 and 2018 is how insurance carriers are collecting their telematics data. In 2018, smartphones surpassed OBD-2 dongles as the primary sensor driving telematics in the US. While only 17% of programs were smartphone-driven in 2016, 36% of insurers used smartphones as a sensor in 2018. The growth in smartphones has not driven significant reductions in dongle-based programs, but instead comes from new programs.

OEM-integrated programs have also grown, tripling from use in 4% of insurance telematics programs in 2016 to 15% in 2018 (Figure 7).

Figure 7

In 2018, 8% of respondent organizations used windshield tags as a device to collect telematics data (Figure 6). While we did not collect survey data on the use of windshield tags in 2016, we are confident that the use of tags has increased according to other reputable market studies.

Figure 6

Just over half (57%) of insurance carriers are currently using only one device to collect telematics data. For the carriers using a mix of devices, the most common combination is OBD-2 and smartphone representing 8% of carriers, down from 26% in 2016. This divestment of a multi-device portfolio shows the increased strength of the smartphone-only value proposition.

Benefits and challenges of smartphone-only telematics

Smartphone-based telematics has three primary benefits over traditional, device-based telematics:

  • Reduced costs: Using smartphones as telematics sensors can significantly reduce the cost of launching a telematics program by eliminating device, telecommunication, shipping, receiving, refurbishing, and warehousing costs. While there are still costs associated with building and maintaining a smartphone app, the cost per user decreases significantly more when scaling mobile telematics than device-based telematics.
  • Ease of adoption: Each step between the binding of a policy and activation of the telematics sensor (whether smartphone or device) reduces the likelihood that the insurer will collect the data they need. With the smartphone-as-a-sensor model, activation rates increase as a telematics app can be delivered almost immediately via email, chat window, or web page.
  • Improved engagement: Whether using smartphones as a sensor or a smartphone / device hybrid solution, pairing telematics with a smartphone enables customer engagement tactics that drive retention and reduce risk.

There are also challenges unique to smartphone-based telematics, including:

  • Data consistency: Every make and model of smartphone uses a unique combination of sensors (accelerometer, gyroscope, GPS) to collect data. Differences in operating systems, versions, and configurations also lead to data quality issues. Additionally, lacking a device, insurers and TSPs may be challenged to identify only trips associated with the insured vehicle, potentially mischaracterizing some risk.
  • Functionality loss: Smartphone-only telematics precludes some functionality that other programs offer. One notable example is the collection and use of vehicle data from the CAN bus. Smartphone-based telematics also poses challenges in insurers’ ability to detect and reconstruct accidents based on telematics data due to data consistency, accuracy, and frequency challenges.

Impact on telematics adoption

With the expansion of smartphone-based telematics and the increase in market experience with the implementation of telematics, the percentage of insurers concerned with the cost of telematics implementation has dropped significantly from 2016 (29%) to 2018 (16%). Smaller carriers and carriers who were earlier in their implementation of telematics are more concerned with implementation costs than Tier 1 carriers.

Similarly, fewer insurers highlighted challenges associated with proving the ROI of telematics in 2018 (16%) than in 2016 (36%). In part, this is likely due to the rise in smartphone telematics and the associated reduction in cost and improved adoption rates.

Using Insurance IoT To Improve Claims Across Lines of Business

Gartner forecasts the number of connected things will exceed 20.4 billion across consumer and business applications by 2020. According to Cisco, IoT devices will generate over 5 quintillion bytes of data every day about human behaviors and health, home safety and security, vehicle usage, physical asset utilization, and more. The explosive growth of IoT devices, and the vast benefit afforded by IoT to insurance necessitates a connected insurance strategy. Almost every one of these connections could be attached to an insurance policy.

The claims management function has relied on subjective policyholder reporting and after-the-fact analysis, regardless of business line. IoT allows insurers to detect loss events in near real-time through dedicated event detection sensors (e.g. connected smoke detectors and telematics-based crash detection) or through behavior monitoring sensors and advanced analytics (e.g. heart attack detection through a wearable sensor). This use of IoT sensors for claims management, connected to an insurance IoT platform, enables insurers to mitigate losses, combat fraud, decrease claim settlement time, and improve policyholder satisfaction.

Auto insurance

The use of auto insurance telematics data beyond risk assessment is a new concept in the US market. In Europe, insurers have been using telematics data to improve claims outcomes for decades. Insurers in the US have recently started leveraging their investment in telematics technologies to improve claims. Claims outcomes have possibly the greatest impact on retention and referrals over any other factor. A report from J.D. Power shows that “satisfaction with the claims experience impacts customer retention and referrals.” 83% of those who had the best claims experience reported they “definitely will” renew their policies. 84% would recommend their insurer. For those that had the worst claims experience, only 10% would renew with or recommend their insurer.

From a purely financial perspective, the impact of telematics on claims is well-documented:

  • 10% reduction in total claims costs*
  • 60% or greater reduction in time to settle claims*
  • 20% reduction in claims frequency
  • 80% reduction in fraud
  • 30% reduction in lawsuits*
  • 30% reduction in whiplash claims paid*

Octo’s partners have reported double-digit improvements in combined ratio with mature programs leveraging telematics to improve claims. Similarly, insurers such as Zurich, Ageas, and Co-operative insurance have reported using telematics data to reduce claims costs by 30-60%.

Homeowner’s insurance

Water damage avoidance

Over one-third of homeowners’ insurance claims are related to water damage. Non-weather-related water damage (such as a burst pipe), makes up almost 20% of total claims. Estimates put the average water-damage claim at almost $9000.

Thanks to water flow sensors, this type of damage is now easily monitored and prevented. Smart water flow monitors can detect leaks in a home’s plumbing, alert the homeowner, and in many cases shut off water flow to affected pipes. Non-emergency alerts, such as a faucet being left on can also be triggered by some sensors. This type of targeted feedback can be critical for behavior-based risk reduction. IoT moisture sensors can also be valuable for detecting and alerting homeowners to both weather-related and non-weather-related flooding. One study by the ACE Group predicts that more than 90% of water damage claims could be avoided through the use of automated leak detection and mitigation systems.

Neos is an innovative connected home insurance company in the UK that offers IoT sensors as part of its insurance offering. They are successfully using leak sensors for water-related claims mitigation, along with other IoT sensors to combat all major home-related risks.

Fire risk mitigation

Fire-related claims are the most expensive homeowners’ insurance claims, responsible for nearly one-quarter of total claims costs. Three of every five home fire-related deaths resulted from fires in homes with no smoke alarms (38%) or no working smoke alarms (21%). Dead batteries caused one-quarter of smoke alarm failures.

Smoke detectors are required by most, if not all, insurance carriers. Smart smoke and carbon monoxide detectors have been developed to address the two greatest challenges with traditional alarms: off-premises notification and alarm status verification. Through a mobile app, smart smoke detectors can notify homeowners of an event no matter where they are. This is critical for claim mitigation as the homeowner (or their insurer) can notify emergency services immediately upon notification and potentially reduce the severity of property loss. If the insurer is

integrated directly with the sensor or service provider, they can also get insight into the status of fire alarms on an insureds’ property. For example, Liberty Mutual’s smart home insurance product offers a discount on home, condo, or renters’ insurance and a free Nest Protect smart fire alarm if insureds share their Nest data with the insurer. For those who opt-in, Nest shares only the devices battery level, status, and Wi-Fi connection strength with the insurer for verification purposes.

More than half of U.S. households with broadband internet find the idea of an IoT device that alerts them to smoke and fire highly appealing. BI Intelligence estimates a home equipped with a connected smoke detector that automatically alerts the fire department could potentially cut an insurance payout by an average of $35,000 USD. Similarly, most consumers would be willing to share smoke or carbon monoxide detector information with an insurance carrier for the right incentives.

Roost Telematics has partnered with leading North American insurers to successfully launch home telematics programs focused on fire and water damage claims mitigation. Roost has reported that their sensors and automated reporting lead to 5-15% reduction in claims for their insurance partners.

Burglary avoidance and mitigation

According to Safeguard the World, the chances of a home burglary rise by 300% when a home has no security system. The average cost of a property-theft related claim is around $2250. Most insurers already incentivize the installation of a security system through insurance discounts. Like fire alarms, insurers have little insight into security-related behaviors except for one-time confirmation of enrollment in a security program.

IoT-enabled devices allow for the remote monitoring of the home and remote activation of home alarm systems, locks, indoor/outdoor lighting, smoke alarms, and even doorbells. In the event of a theft, fire, or flood, in-home video monitoring can be used as a catalog of property damaged or destroyed to help accelerate the claims process and combat fraud.

One example of a connected home insurance program is American Family’s partnership with Ring. American Family offers a $30 discount on Ring’s video doorbell products. If the homeowner installs the doorbell, they become eligible for AFI’s Proactive Home Discount. In the event of a burglary, Ring will reimburse the homeowner’s policy premium.

Life and health insurance

Smart devices provide a unique ability to both detect a health event before it happens through leading indicators and to detect and mitigate the severity of an event. For example, a smart wearable device can monitor blood glucose measurements, notify the wearer if glucose levels drop, and provide doctors with trend data to help them understand how well their patient is managing their diabetes. Insurers can tie this type of monitoring to policyholder incentives and provide real-time feedback to improve chronic disease management outcomes. A similar smart wearable device that detects heart rate and temperature could be used to identify a heart attack, alert the insurer, and provide a mechanism for providing emergency services to the policyholder. Wearable devices, with the right sensing capabilities, have been proposed to detect cancerstressdiabetic emergencieshypertensionasthma attacks, and many other chronic disease-related emergencies.

Across health-monitoring smart devices, insurers have the ability through real-time health monitoring to avoid claims, reduce the severity of claims, and improve policyholder satisfaction.

IoT is well positioned to help combat fraud in health insurance. Data on location and health statistics can give insights into what happened before, leading up to, and after an event causing a medical claim. Insurers can use this data to detect pain levels and combat drug-seeking behaviors, detect behaviors inconsistent with disability claims, and to shift liability from a health insurance claim to (or from) a workers’ compensation claim.

Read our new white paper, Get Ready to Win in an Era of Insurance IoT, to understand the full benefit of insurance IoT across lines of business.

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