TELEMATICSDebbie Olsen, QuindellClinton D’Souza, CGIBlair Currie, IMSPaul-Andre Savoie, Baseline TelematicsPatrick Vice, Frank Cowan

www.orbitcanada.ca

What Brokers Need to Know about Telematics

ORBIT Education Days

List of Slides• How it works – the variety of technologies

• What it is – the variety of offers & solutions

• Why does insurance care so much?

• Why it’s important to you – the future

How it works – 7 Steps (Device)

1. Receive Device

3. Configure SIM Card in Device via Text (SMS)

4. Insert configured Device into

vehicle OBD port

5. Raw Data transmits

automatically and directly

6. To secure data servers in the cloud

for processing

7. Results: Secure Private User access 24/7 to online portal results via any device.

2. Insert 3G SIM Card with Mobile Bill Plan

for data and text

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The Potential to Turn Underwriting on its HeadDescription Mnemonic Value ANSI

GPS position report (“breadcrumb”) GEO_LOCATION 0x0121 DATETIMEGPS

Start of trip (engine on or hybrid powering drive-train) TRIP_START 0x0122 TRIPSTART_ODO

End of trip (engine off or hybrid no longer powering drive train) TRIP_END 0x0123 TRIPEND

Idle time (zero speed concurrent with non-zero RPM) IDLE 0x0124 INTDATETIMEGPS

Geofence boundary crossing GEOFENCE 0x0126 HEADING or FOOTING60-80 second pre-collision data for RPM, SPEED and THROTTLE (for accident reconstruction)

BLACK_BOX 0x0128  

Time accumulated in each of 4 speed bands (per trip) MULTI_THRESHOLD 0x0129 MULTI_THRESHOLD

Fuel consumption SAE_FUEL 0x002F INTDATETIMEGPS

Longitudinal acceleration/deceleration (includes collision detection) OID_ACCEL_LONG 0x3801INTDATETIMEGPS 64_DATETIMEGPS

Lateral acceleration/deceleration (hard cornering, hard acceleration and hard braking)

OID_ACCEL_LAT 0x3802 INTDATETIMEGPS

Vertical acceleration/deceleration (rough road detection) OID_ACCEL_VERT 0x3803 INTDATETIMEGPS

Battery voltage level OID_SAE_BATTERY 0x600A ASN1_BYTEOdometer OD_SAE_ODOMETER 0x6050 32_DATETIMEGPSVehicle Identification Number (reported only once at boot-up, if available)

OID_SAE_VIN 0xE082 OCTSTR

Illustrative

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Public Telematics offers in the Canadian Auto P&C industry

Company In Production Announced Solution Provider Comments

Industrial Alliance – captive agent Baseline Telematics True UBI, PP, but PLPD and Quebec only

Desjardins – directThe Personal - direct iMetrik Discount only; PP, Customers may not be

faithfully installing the devices

CAA - direct Quindell Non-insurance - Roadside assistance

IBAO - broker Quindell Discount only; offered under nda to multiple insurers

The Co-operators – captive agent IMS Discount only; PP, just launched

Ingenie – is a brokerage QuindellTargeted Young driver program as in the U.K., PP

SGI - broker Baseline Telematics Safer Roads ; motorcycles

Intact – brokerBelair - direct OCTO Discount only; just launched

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Why is Telematics in P&C hotter than ever?

Source: Fergusson, D., Swain‐Campbell, N., & Horwood, J. (2003). Risky driving behaviour in young people: prevalence, personal characteristics and traffic accidents. Australian and New Zealand journal of public health, 27(3), 337-342.

Usage and Behaviour Correlate with Incident

Frequency

Transportation research board (TRB) in 2007 Washington meeting: “exposure to the feedback generated over 40% reduction in crash rates”

http://www.oryarok.org.il/webfiles/audio_files/072173_Musicant_Lotan_Toledo.pdf

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Dynamic Geofencing

• Boundaries drawn where there is street-level access to GPS satellites

• On-board device detects when vehicle crosses boundary

• Boundaries can be changed at any time

• Can be used to evaluate U.S. or out-of-province exposure

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The global marketplace is ready for widespread adoption of UBI

Percentage interested in UBI

80% 50%51%52%69%

ITALY SPAIN FRANCE GERMANY USA

Why it’s important – the futureThe Internet of Things

Telematics

1 Do you think telematics is here to stay and why?2 Is telematics a personal lines only solution?3 What opportunities and threats do you think

telematics creates for brokers?4 Will the data be “portable” enough for a broker

to qualify for a telematics discount immediately with the new company?

Telematics

5 This refers to privacy and consent; who controls what data is being collected and can a client say “give it back”?

6 How can brokers bring value in a Telematics world?7 How different will the pricing be for Telematics

clients?8 How will brokers explain the different options to

consumers?

Telematics

9 When a telematics client calls in for a quote, what will be involved for a broker get a rate for them with multiple carriers?

10 Will all clients have to go to Telematics to ensure a competitive price?

11 How has the Telematics worked in a broker environment in other areas?

12 How does the data that is collected get to my BMS?

Telematics

13 How will I know if my client is using Telematics so that when they want a quote to do a change of vehicle, I will know how to quote them?

14 What do you think is next?