Introduction to Health Economics Dr. R. Kurinji Malar.pptx
IMS Presentation at Insurance Telematics USA 2012 - Chicago - September 5, 2012
1. UBI 2.0: Taking it to
the next level
IMS Panel Discussion
Insurance Telematics USA IMS Inc. Proprietary and Confidential
September 5, 2012
2. Purpose
• This presents IMS
thoughts on how to
accelerate the success
of usage-based insurance
in UBI 2.0
2
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. Telematics Update Survey
Barriers to growth
13% Making the
economics work
15% Customer
43% adoption
Management
30% support
Understanding the
data
Source: Survey of 400 Telematics Update contacts
5. Value Chain – IMS Model
Intel
Analytics
Analytics
Data
Devices &
Deployment
Business Foundation
(Business Model and Adoption)
6. UBI Business Models
Intel
Analytics
Analytics
Data
Devices &
Deployment
Business Foundation
(Business Model and Adoption
7. Insurance Telematics Business Case
Premium $ Distribution Reduce Claims
100%
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. Telematics TCO - Trends
Dedicated 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. UBI Best Practices
Intel
Analytics
Analytics
Data
Devices &
Deployment
Business Foundation
(Business Model and Adoption)
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. 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. Devices & Deployment
Intel
Analytics
Analytics
Data
Devices &
Deployment
Business Foundation
(Business Model and Adoption)
13. UBI 1.0 Deployment
• Early eco-system driven
largely by
– Auto insurance
companies
– Wireless carriers
– Analytics companies
– Telematics service
providers
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. 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. UBI 3.0 Connected Car Eco-system
More Robust
Seamless Scoring – Data
Integration Analytics Partners
Content
Providers = Automotive
Enhanced OEMs
VAS (Built-In
UBI 3.0 devices, etc)
Connected Car
Sophisticated Superior
Mobile Applications Innovation from
Device Mfrs
Policyholder
Personalization
17. Data, Analytics & Intelligence
Intel
Analytics
Analytics
Data
Device &
Deployment
Business Foundation
(Business Model and Adoption)
18. Transforming Data Into Intelligence
Context-Relevant
Representation
Intelligent
Smart Data
Analysis and
Acquisition
Visualization
Advanced
Traveler-Centric
Feedback Loops
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. 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 …
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
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. UBI 1.0 Eco-system Is Relatively Simple
• Based mainly on
– Auto insurance
companies
– Wireless carriers
– Analytics partners
– Telematics service
providers
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. 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. 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