IMS Presentation at Insurance Telematics USA 2012 - Chicago - September 5, 2012

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IMS Presentation at Insurance Telematics USA 2012 - Chicago - September 5, 2012

  1. 1. UBI 2.0: Taking it tothe next levelIMS Panel DiscussionInsurance Telematics USA IMS Inc. Proprietary and ConfidentialSeptember 5, 2012
  2. 2. Purpose• This presents IMS thoughts on how to accelerate the success of usage-based insurance in UBI 2.0 2
  3. 3. UBI is evolving rapidly• UBI 1.0 • UBI 2.0 – Value for insurance – Value for insurance firms, companies consumers & partners – Linked to pricing – Linked to pricing & CRM – Related only to auto – Related to connected cars insurance eco-system – Technology becomes – Technology plugged into distributed – plugged-in, OBDII brought-in, built-in & – Focus on cost beamed-in – Communications only on – Focus on profitability back-end – In-vehicle communications starting
  4. 4. Telematics Update Survey Barriers to growth 13% Making the economics work 15% Customer 43% adoption Management 30% support Understanding the dataSource: Survey of 400 Telematics Update contacts
  5. 5. Value Chain – IMS Model Intel Analytics Analytics Data Devices & Deployment Business Foundation (Business Model and Adoption)
  6. 6. UBI Business Models Intel Analytics Analytics Data Devices & Deployment Business Foundation (Business Model and Adoption
  7. 7. Insurance Telematics Business Case Premium $ Distribution Reduce Claims100% 90% 80% Increase # of Policyholders Net Margin (4%) 70% 60% Taxes (2%) Increase Value of Premiums 50% 40% Op Expenses 30% (24%) 20% Claims (70%) 10% 0% USA Today Poll
  8. 8. Telematics TCO - TrendsDedicated OBUs Alternate Models • Telematics as a Service• In 2013: $75 is in sight • Lease • BYOD Operating Expenses (Monthly) • Wireless Transport • Data Collection & Storage • Device Management • Analytics & Visualization • Customer Care
  9. 9. UBI Best Practices Intel Analytics Analytics Data Devices & Deployment Business Foundation(Business Model and Adoption)
  10. 10. Adoption: Largely Driven To Date By Discounts. Is It The Right Way? 2011: What Discount Would It • Is a discount the most compelling reason to adopt? Take To Participate? • What happens when the incentives don’t lead to user Want At Least 20% adoption? 47% Discount to Participate • What might these programs look like tomorrow? Would Participate For 39%Between 11-20% Discount Would Participate For 13% 10% Discount 0% 20% 40% 60% 80%
  11. 11. Strategize. Choose Wisely. Treat Kindly. Adoption as a KPI is key, but don’t forget about retention! Find new, compelling reasons to attract users. Balance VAS offerings where appropriate to leverage the desires of your “best risk” drivers. Encourage telematics as the only long term alternative. Be the right influence on tomorrow’s market. Watch Your Relationships Grow.
  12. 12. Devices & Deployment Intel Analytics Analytics Data Devices & Deployment Business Foundation (Business Model and Adoption)
  13. 13. UBI 1.0 Deployment• Early eco-system driven largely by – Auto insurance companies – Wireless carriers – Analytics companies – Telematics service providers
  14. 14. UBI 2.0 Eco-system – The Evolution of Driver Intelligence Premium Services / VAS  Auto vehicle locator (AVL) Managed Services  Roadside assistance  Vehicle diagnosticsIntegrated & Scalable  Traffic alerts / routingMeaningful Data  Road charging  Green reportsPersonalized Experience  Stolen vehicle recovery Program Mgmt Logistics & Fulfillment Solutions Communication  3PL vendor selection & Support Protocols /  Forward/Reverse logistics  SIM provisioning Wireless Carrier  Training  GSM  Adoption  Inventory management  Personalization  CDMA  Support System & Data Management  WCDMA  Retention  Enrolment models  Secure data warehousing  Wi-Fi Application  System monitoring and scalability  BT  Data exports and analysis  RFID  UBI  Administrative reports  Young driver  Mature driver  Fleet Business Intelligence Systems Integration  Road charging  Data Analytics  Non-actuarial Scoring  Integration with enterprise systems  Driver identification  Automation with exception handling  Process engineering Device Selection and Configuration  Behaviormatics  Single sign-on  Location tracking: GPS or non-GPS  Port: OBD or Cigarette  Voltage: 12V or 24V Data Visualization  Accelerometer options  Data collection and transmission intervals  Web or mobile based solutions  OTA upgradeability  Customized / Branded B2B / B2C portals  Antenna selection  Driving reports, coaching tips, scoring,  Multi-network device account and vehicle management  Panic button  Feedback channels: web, mobile, email, SMS, 2-way radio, etc Vehicle Supportability  OBD-2 or non OBD-2 support  Gas , diesel, hybrid, and electric support  Cars, vans, trucks, heavy duty  Device agnostic TSPs
  15. 15. UBI 2.0 vs. 1.0 Devices• More powerful• More versatile – All vehicle types – More ports – Able to add value added services• More connected – GSM/CDMA – Bluetooth/RFID/Wi-Fi• More reasonably priced
  16. 16. UBI 3.0  Connected Car Eco-system More Robust Seamless Scoring – Data Integration Analytics Partners ContentProviders = Automotive Enhanced OEMs VAS (Built-In UBI 3.0  devices, etc) Connected Car Sophisticated SuperiorMobile Applications Innovation from Device Mfrs Policyholder Personalization
  17. 17. Data, Analytics & Intelligence Intel Analytics Analytics Data Device & Deployment Business Foundation (Business Model and Adoption)
  18. 18. Transforming Data Into Intelligence Context-Relevant Representation IntelligentSmart Data Analysis andAcquisition Visualization Advanced Traveler-Centric Feedback Loops
  19. 19. Smart Data Acquisition for Insurance Companies• Extract Maximum Value From Data – Data is fundamental for understanding – High quality data drives accurate insights• Right Data, Right Time? – Variable frequency data collection – Metadata & parameters describing • Precision • Accuracy • Relevance
  20. 20. Context-Relevant Representation• Advanced Context-Relevant Algorithms – Aggressive acceleration – Hard deceleration – Rapid cornering• Relevant Non-GPS Context – Distance and timing between intersections – Identification of right turns, left turns, and roundabouts – Aggressive maneuvers, etc.• Relevant GPS Context – Weather – Road Type – Regions of interest …
  21. 21. Intelligent Analysis and Visualization• Secure Transfers – Real-time, Event-Driven, On-Demand – Optimal Compression – Bidirectional Communication• Distributed Intelligence – Low Latency Interaction – Accessible Warehouses
  22. 22. High Precision Driving & Driver Info
  23. 23. Share Intelligence With Policyholders• Non-actuarial scoring presents a new way to assess risk• Also can start a Customer Relationship Mgt. program to bring users into the conversation• Empower drivers with scoring, coaching & tips• Employ PC and mobile portals
  24. 24. Employ Device For Uses Beyond UBI
  25. 25. Summary: UBI Is Evolving Rapidly• UBI 1.0 • UBI 2.0 – Value for insurance – Value for insurance companies only companies, consumers – Linked to pricing & sub-lease to partners – Related only to auto – Linked to pricing & CRM insurance eco-system – Related to connected cars – Technology is plugged into – Technology becomes OBDII distributed – plugged-in, – Focus on cost brought-in & built-in – Communications only on – Focus on profitability back-end – In-vehicle communications starting
  26. 26. UBI 1.0 Eco-system Is Relatively Simple• Based mainly on – Auto insurance companies – Wireless carriers – Analytics partners – Telematics service providers
  27. 27. UBI 2.0 Eco-system Is Attracting New Players• Automotive – OEMs – Dealers – Service providers• Software platforms• Device manufacturers• Software players• Content providers• Others
  28. 28. UBI 2.0 Is Disruptive• UBI 2.0 disrupts the auto insurance Industry – Price model – CRM models• UBI 2.0 will disrupt the automotive industry by being the first mass market to connect cars
  29. 29. For more information on how you can benefit from IMS’ UBI 2.0 programs please call Blair Currie at +1 519 745 8887 or email at bcurrie@intellimec.com

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