Mobile network operator O2, has recently entered the car insurance market through its partnership with Junction Insurance. It has launched its O2 Drive Mobile App and 2 main propositions - "O2 Drive" and "O2 Drive - Box on Board". The latter uses telematics technology and is squarely aimed at younger drivers.
The application is an early attempt to harness "Internet of Things" technology, and will use data to encourage safer driving and discounts on insurance premiums. The app is also linked to a range of linked services - motor breakdown, car servicing and maintenance - as well as other discounts and offers already available to other O2 customers.
The cover is underwritten by Junction's car insurance panel and O2 claims that additional discounts may also be available to customers based on their length of relationship with O2, payment history and type of device.
For many years, insurance providers have wondered how to develop proportions which might appeal to the technology giants and their massive customer bases. Even though the O2 offerings may not be particularly original, the partnership represents something of a coup for Junction and is likely to be repeated by other technology brands and insurers.
O2 continues to offer "mobile insurance" underwritten by Telefónica Insurance.