MTN Business and Huawei have launched a usage-based product for insuring drivers. Initially using MTN’s 2G and 3G network, the intention is to use the mobile operator’s Internet-of-things (IoT) network when it offers national coverage.

The product monitors and assesses driver behaviour and is meant to motivate better driving, MTN said.

The solution uses an on-board diagnostic device that connects the car to a mobile app for private use or to a data centre for commercial users such insurance companies or fleet management firms.

Driver behaviour, including speed and braking, can be monitored and assessed. It can also sense driver fatigue and send out a warning to the driver to rest.

“Through data analytics, the system can give drivers a rating: a high score shows a low accident risk. Vehicle insurers can utilise this to offer incentives for better driving, which will in turn reduce accidents and the associated claims,” said MTN Business senior manager for enterprise IoT solutions Melao Mashale in a statement.

“Usage-based insurance is a great opportunity for alternative revenue growth for telecommunications operators,” said Huawei regional IoT director Zhu Ming.

The MTN and Huawei insurance partnership is based on a revenue-share model and is the foundation for a broader connected car solution, the companies said.