Directed Electronics, the largest supplier of aftermarket vehicle security and remote start systems in North America, has announced that it has signed a memorandum of understanding with Octo Telematics, the leading insurance telematics provider in Europe, to develop telematics services for the U.S. and Canadian vehicle insurance markets.
The European automotive insurance telematics market has expanded rapidly over the last several years with leading insurance companies offering consumers value-added services such as automatic crash response and usage-based insurance. Both Octo Telematics and Directed Electronics believe significant opportunities exist for similar services in the United States, which is evidenced by insurance companies such as Progressive and GMAC Insurance offering telematics-based services as well as increased interest by federal and state agencies.
Telematics is poised to increase opportunities for insurance companies and drivers through reduced risk, value-added services such as automatic crash response and accident damage management, safe driver rewards, and a cleaner environment by incentivizing responsible driving behaviors.
According to Kevin Duffy, President of Directed Electronics, “We are excited to join forces with Octo to create a compelling telematics offering for automotive insurance underwriters. With 750,000 active customers and 50 insurance company clients in Europe, Octo Telematics is the clear leader in the insurance telematics space, and our new partnership will leverage Octo’s technology platform and experience to deliver these services in both the United States and Canada.”
According to Germano Fanelli, Chief Executive Officer of Octo Telematics, “Directed’s vast network of customers with installation capability, industry-leading technical support, and sizable logistics infrastructure will provide a powerful platform capable of accelerating our speed to market. We look forward to jointly working with insurance providers to further advance telematics offerings in North America.”