Transcript
Page 1: Insurance is the most profitable connected vehicle service

PTOLEMUS Consulting Group

Insurance: the most profitable connected car service

ConnecteDriver, Brussels,

January 2014 - ©PTOLEMUS - All rights reserved

Page 2: Insurance is the most profitable connected vehicle service

Source: PTOLEMUS

What is insurance telematics?

• Most current insurance policies use static / statistical criteria to evaluate drivers' risks - Age, gender, vehicle make & age, place of residence, occupation, etc

• Insurance telematics is a policy based on these criteria and 4 new dynamic parameters

Its basic principles

Usage based insurance/ quick definition

The driving risk star

Distance

Static criteria

(statistical)

Time

PlaceDriving behaviour

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PTOLEMUS

Insure the box demonstrate the business case for UBI as a connected service

• Since 2010, insure the box provides PHYD insurance to young drivers. Average premium £1600/y

• It has sold around 125,000 policies, entirely online

• It indicates that 95% of its customers get reductions on renewal averaging 34% based on their driving experience

• Its incentives for safe driving have reduced accidents among 17- 21 year olds by 35-40%

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Usage based insurance business case: claims

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PTOLEMUS

Ingenie has created a strong relationship with its customer base

• Twitter campaigns reach of 2 to 3 million

• Campaigns drive web traffic

• Smartphone application feedback every 10 days, after 40 miles driven

• Black messages sent on the same day

• 89% checked their message in the last 14 days

• Average interactions: 6/months

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Usage based insurance business case: relationship

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PTOLEMUS

Sparkassen (S-Direkt) designed its model around Value Added Services

5Source: Unipol, PTOLEMUS

• S-Direkt partnered with local operator Telefonica to provide a service-based offer

• Deutsche Assistance (eCall, bCall)• Masternaut (theft tracking)• Smartphone-based driver feedback is

handled by Telefonica. - Where is my car service- Reduced social interactivity- Best driver contest

• Limited discount to 5%

• 2 Channels: aggregator and direct

• The German market is sensitive to privacy, safety and vehicle theft.

• Telefonica adapted the architecture to separate the driver data and the insurance rating and rescue services.

Usage based insurance business case: VAS

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PTOLEMUSPTOLEMUS

The UBI market today

Source: PTOLEMUS 6

The market for telematics insurance is now global

0 1 2 5 10 20 40

US

- AAA

- Allstate

- Am Fam

- Farmers

- GMAC

- Liberty Mutual

- Mapfre

- Progressive

- Safeco

- StateFarm

- The Hartford

- Travelers

- USAA

Canada

- Desjardins

- Industrial Alliance

Mexico

- GNP

EuropeEurope

- Admiral - Ingenie

- Allianz - Insure the box

- Amaline - Linear

- Aurora - Mapfre

- Axa - SparKasse

- Aviva - Reale

- Co-operative - Sara

- Coverbox - The AA

- Direct Line - Unipol

- Generali - Zurich Japon

- AIOI

- Sompo

Afrique du sudAfrique du sud

- Discovery - MiWay

- Hollard - OutSurance

Australie

- AI Insurance

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PTOLEMUS Source: PTOLEMUS

Insurance interaction with the driver can take many shapes

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Possible technologies for vehicle connected services

Insurance telematics market drivers - Technology

Fixed Removable

Line-fitted

Aftermarket

Portable

Black box OBD device

FMS box

OEM system

Semi-embedded system

Self-energised connected modules

Digital tachograph

Drive Cam

Supplier system

Cigarette-lighter device Smartphone

Speed camera locatorPND

Smartwatch

Vehicle keys OEM Smartwatch

Page 8: Insurance is the most profitable connected vehicle service

PTOLEMUS The video can be seen here: http://youtu.be/YlTFlxI1RuE

Fraud can take many shapes

• UBI technology does not solve everything

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Insurance telematics market drivers - Technology

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PTOLEMUS Source: PTOLEMUS

...Yet very very few are used today

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Possible technologies for vehicle connected services

Insurance telematics market drivers - Technology

Fixed Removable

Line-fitted

Aftermarket

Portable

Black box OBD device

FMS box

OEM system

Semi-embedded system

Self-energised connected modules

Digital tachograph

Supplier system

Cigarette-lighter device Smartphone

Speed camera locatorPND

Smartwatch

Vehicle keys OEM Smartwatch

Self-energised connected modules

Drive Cam

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PTOLEMUS

More service providers are harnessing car data

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CAN data accessed by the device

Increasing range of services offered

Usage Based Insurance’s use of car data

Source: PTOLEMUS, Progressive, Allianz, Audiovox, Mobile Devices

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PTOLEMUS

New services are now offered around the OBD dongle

- eCall- bCall - Fuels saving- Driver scoring and

rewards- Smartphone use

restriction- Driver log- Geofence...

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CAN data accessed by the device

Increasing range of services offered

- Mileage- Fuel level- RPM- Crash

detection- Alignment

- Airbag- Body

controller- Powertrain- Door control- GPS data- Driving events- VIN

Data include:- Mileage (leasing)- Fuel level- Diagnostic- Crash detection- Fleet tracking

Services include:

Source: PTOLEMUS, Allianz, Audiovox, Mobile Devices

Usage Based Insurance’s use of car data

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UBI potential for third parties

The car makers can harness UBI to provide added value

• OEMs can become Car Service Providers

- Use eCall as a plateform- Recurring relationship with

customers, meaning increased trust- Numerous new revenue

opportunities

• Insurance can become the number 1 source of connected revenues

- Most of them already sell financing to their customers. Insurance is the next step

- Multiple services can be sold together with UBI, notably bCall, SVR, roadside assistance, etc.

Source: PTOLEMUS

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Creating a service in partnership with an insurance

• Define the roles and branding:- who is the customer-facing insurance provider- Can multiple insurers offer insurance for a given vehicle

• Define the model or models:- What type of data will be shared? Raw, filtered, score...- How will driver and vehicle data be delivered

• Define the device and technology

- Embedded, customer owned or smartphone?- What sensors can be used accelerometers- Cost and maturity

UBI potential for third parties

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Conclusion

Insurance has the potential to connect most vehicles

• Telematics is not compulsory, Insurance is

• OBD devices are becoming car data centric service platforms

•Insurers will continue to push for more reliable and efficient accident detection and analysis technologies

•A model of data exchange between various stakeholders will facilitate the take-off of the embedded UBI industry

• UBI will accelerate synergies between connected services and improve usage rate

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PTOLEMUS 3

Introduction to the 2013 study

• 800 pages of rigorous analyses of the PAYD / PHYD market based on: - 201 interviews in 18 countries- 330 figures and charts- 3 years of hands-on experience- Our knowledge of the ecosystem

incl. OEMs and TSPs• 38 case studies including Allianz,

Amaguiz, Cobra, Coverbox, Insurethebox, Ingenie, OnStar, Hollard Insurance, Insurethebox, Liberty Mutual, MAIF-MACIF, Norwich Union, Octo Telematics, Progressive, Quindell, State Farm, Unipol, Uniqa, Zurich

• A strategic analysis of the value chain evolution including - The impact of eCall- The role of the smartphone- The new patents and partnerships

• A handbook of 44 suppliers' solutions including our own evaluation and ranking

• 10-year market forecasts - Country forecasts for Canada,

China, France, Germany, India, Italy, Japan, Russia, South Africa, the UK and the US

- Bottom-up estimates of the number of policies for each insurer in the US, the EU and in South Africa

• Telematics insurer market models - Markets’ readiness to UBI for 20

countries- Analyses* of the insurer's business

models in 6 countries• A complete set of

recommendations for insurers, regulators, TSP, OEMs and operators

More than a research report; a real strategic

market analysis

* Italy, the UK, France, Germany, Russia and the US

The UBI Global Study paints a truly comprehensive picture of the UBI market

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PTOLEMUS

PTOLEMUS in a nutshell

PTOLEMUS is the first strategy consulting firm focused on telematics and geolocation

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Mobile content and social networking Application stores, crowd-sourcing, etc.

Navigation & location-based servicesMaps, traffic, fuel prices, speed cameras, parking, etc.

Usage-based charging PAYD / PHYD insurance, Road User Charging,

PAYD car leasing & rental

Telematics & Intelligent Transport SystemsConnected car, tracking, fleet management, eCall, bCall,

Stolen Vehicle Recovery, Car As A Service, connected train, etc.

Positioning / Location enablement

M2M & connectivity

Our fields of expertise

Strategy definition

New market entry Business plan development,

Board coaching and support

Investment Evaluation

Due diligence, Market

assessment, Feasibility studies

Innovation management

Product & services development, Roadmap and

launch management,

Patent strategy

Business development

Partnership strategies,

Response to RFPs, RFQs,

Lobbying

Our consulting services

Procurement strategy

Specification requirements,

Tenders publications,

Supplier negotiation & selection

Implementation

Project & programme

management, Risk analysis &

mitigation strategy

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PTOLEMUS

PTOLEMUS in a nutshell

Who we have helped

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Content & application providers

ITS operators & regulators

Consumer electronics makers

Positioning solution providers

Montezemolo & Partners

Financiers

2012 Directors’ report

(translation from the Italian original which remains the definitive version)

Financial Statements of the Company and the Group at 31 December 2012

27 March 2013

Legal and Administrative Office: 20121 Milan - Foro Buonaparte, 44

Fully paid-up share capital € 314,225,009.80 Tax Code and Milan Company Register no. 00931330583

www.itkgroup.com

Telecom operators

FleetsFleets

Insurers & assistance providers

Telecom infrastructure suppliers

OEMs & telematic vendors

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PTOLEMUS Consulting Group

S t r a t e g i e s f o r M o b i l e C o m p a n i e s

Brussels - Paris - London - Milan - Munich - [email protected]

w w w . p t o l e m u s . c o m


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