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Usage Based Auto Insurance

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Snapshot Marketing Launched March 14th, 2011

… after 15 years of development work

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Usage Based Insurance: Telematics Technology

1999 20072004

Current

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Consumer Views on UBI

General Interest in UBI and Likelihood to Enroll

Key product design insights:

• No GPS• Optional

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• Participation is optional and free• 0% to 30% usage based discount• Partial monitoring model. Return device after 6 months.• $50 device non-return fee

• Discount based on:– How you drive (hard brakes)– How much you drive– When you drive

Snapshot Product Design

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Consumers Like Snapshot

• T12 premium = $1.8 Billion• 1.2 million Snapshot policies in force• One-third of direct shoppers opt in

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Snapshot’s Big Data

• 8 billion miles recorded– 1.3 billion trips– 6.6 miles per trip– 1.1 trillion one-second records

• 90 terabytes

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Driving Behavior Is Our Most Predictive Rating Variable

UBI

Points

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0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

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Why Is Traffic So Bad For Friday Evening Commutes?

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Why Is Traffic So Bad For Friday Evening Commutes?

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How Much Of Your Drive Time Is Spent Idling?

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How Much Of Your Drive Time Is Spent Idling?

Idle 1 to 30 31 to 50 51 to 75 >7526% 33% 22% 17% 0%

Source: Analysis of 9.8 million trips covering 63 million miles

% of time spent in each speed band

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UBI Customer Experience: Details Matter

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How Will UBI Evolve?

• Will consumers allow insurers to use location data?

• How predictive is data from mobile devices?  

• How will the market address the worst drivers?

• What feedback is most effective to improve driving behavior?