Ims ibc presentation final - feburary 12, 2013

1,792 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,792
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
37
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Ims ibc presentation final - feburary 12, 2013

  1. 1. Insurance is more than a snapshot.IBC Presentation – UBI 2.0February 12, 2013 Intelligent Mechatronic Systems (IMS) © Confidential
  2. 2. Purpose• This presents IMS’ Point of view on how Canadian insurance carriers can succeed with Usage based insurance (UBI). 2 Intelligent Mechatronic Systems (IMS)© . 2013
  3. 3. Reference: Isaac Newton (1643-1727)• “If I see farther it’s because I am standing on the shoulders of giants” – Learn from US & UK – Leapfrog existing business models Intelligent Mechatronic Systems (IMS)© . 2013
  4. 4. UBI is evolving• UBI 1.0 • UBI 2.0 – Value for insurance – Value for insurance carriers, companies only consumers & partners – Linked to pricing – Linked to pricing & CRM – Related only to auto – Connected car ecosystem insurance eco-system – Technology becomes – Technology plugged into distributed – plugged-in, OBDII in US/mobile in UK brought-in, built-in & beamed-in – Focus on cost – Focus on profitability over time – Communications only from – Two-way In-vehicle car to back-end communications developing Intelligent Mechatronic Systems (IMS)© . 2013
  5. 5. UBI 1.0 • Key players – Insurance Carriers – Telematics Service Providers (TSP’s) – Wireless Carriers – Analytics PartnersIntelligent Mechatronic Systems (IMS) © . 2013
  6. 6. UBI 2.0: sophisticated ecosystem Content provider Business Value Process Added Consultants Service Auto dealers Analysts Auto OEMs Device players Intelligent Mechatronic Systems (IMS)© . 2013
  7. 7. US barriers to growth Making the economics work 13% Customer adoption 15% 43% Management support 30% Understanding the dataSource: Survey of 400 Telematics Update contacts. August 2012. Intelligent Mechatronic Systems (IMS)© . 2013
  8. 8. UBI value chain Intelligence Analytics Data Devices & Deployment (End-to-end solution) Business Foundation(Market Experience, Business Model and Adoption Programs) Intelligent Mechatronic Systems (IMS)© . 2013
  9. 9. Business model is #1 barrier (43%) Intelligence Analytics Data Devices & Deployment (End-to-end solution) Business Foundation (Market Experience, Business Model and Adoption Programs) Intelligent Mechatronic Systems (IMS)© . 2013
  10. 10. Business model today – B2B2C (Data is used to set rates) TelematicsTe Services Insurance Carrier Policyholders Provider (B) (C) (B) Intelligent Mechatronic Systems (IMS) © . 2013
  11. 11. Business model tomorrow – B2B2C (Consumers pay for VAS) TelematicsTe Services Insurance Carrier Policyholders Provider (B) (C) (B) Value added services Intelligent Mechatronic Systems (IMS) © . 2013
  12. 12. Future business model: employ device beyond UBI Intelligent Mechatronic Systems (IMS)© . 2013
  13. 13. UBI business case Premium $ Distribution Reduce Claims100% 90% 80% Increase # of Good drivers 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 Intelligent Mechatronic Systems (IMS) © . 2013
  14. 14. UBI: total cost of ownershipDedicated OBUs Alternate Models • Telematics as a Service• In 2013: $75 device is in sight • Lease • BYOD Operating Expenses (Monthly) • Wireless charges • Data Collection & Storage • Device Management • Analytics & Visualization • Customer Care Intelligent Mechatronic Systems (IMS)© . 2013
  15. 15. Adoption is #2 barrier (30%) Intelligence Analytics Data Devices & Deployment (End-to-end solution) Business Foundation (Market Experience, Business Model and Adoption Programs) Intelligent Mechatronic Systems (IMS)© . 2013
  16. 16. Adoption: driven by discounts 2011: What Discount• US discussion focused Would It Take To Participate? on Price Want At Least• Price story favours price 20% Discount to 47% players Participate – Progressive Would Participate For Between 11- 39% – Geiko (BH) 20% Discount• Are discounts the only Would Participate 13% For 10% Discount proposition?• What if discounts fail? 0% 20% 40% 60% 80% Intelligent Mechatronic Systems (IMS) © . 2013
  17. 17. Strategy & tactics for adoption• Strategy – Price is key rational consideration – Consider other rational drivers e.g., Value added services – Build emotional drivers• Tactics – Programs to enhance adoption Intelligent Mechatronic Systems (IMS) © . 2013
  18. 18. Adoption option #1: IMS Chronicle• Broaden the dialogue beyond price• Start a CRM system• Driver coaching & tips• Can be used to involve 3rd parties – Brokers – Advertisers Intelligent Mechatronic Systems (IMS) © . 2013
  19. 19. Adoption option #2: IMS Green reports Intelligent Mechatronic Systems (IMS) © . 2013
  20. 20. Adoption option #3: start with teens or mature drivers• Co-op coaching program • Insurance carrier • Parents • Young Drivers• Stand-along product or UBI extension• Key market differentiator• Helps lifetime family coverage• Saves lives! Intelligent Mechatronic Systems (IMS) © . 2013
  21. 21. Option #3 cont’d.: Coaching tips & alerts for parents & young drivers Behavior-specific Coaching Tips and Alerts will be provided to Young Drivers (and their Parents) based on their driving style Intelligent Mechatronic Systems (IMS) © . 2013 21
  22. 22. Policyholder adoption tools• Adoption requires effort from the Insurance carrier broker and TSP to ensure full enrollment• “Carrots” and “sticks” 22 Intelligent Mechatronic Systems (IMS) © . 2013
  23. 23. Devices & deployment Intelligence Analytics Data Devices & Deployment (End-to-end solution) Business Foundation (Market Experience, Business Model and Adoption Programs) Intelligent Mechatronic Systems (IMS)© . 2013
  24. 24. UBI end-to-end solutionResearch & Fully ManagedDevelopment IT InfrastructureDesign & Systems IntegrationManufacturingIntelligent Apps & LogisticsWeb Portals Customer Care &Analytics, visualization Ongoing program& Intelligence support 24 Intelligent Mechatronic Systems (IMS)© . 2013
  25. 25. IMS turnkey solution• Turnkey: complete end-to- end solution• Scalable: IMS platform is designed to scale• Customizable: All programs can be customized through IMS Professional Services• Proven: IMS has UBI experience with 8 of the top 25 US Insurance Companies 25 Intelligent Mechatronic Systems (IMS)© . 2013
  26. 26. Device options OBDII Port options•Device selection based on Program/data requirements• Built-to-order designs GSM / GPRS HSPA / WCDMA and CDMA. Professionally installed Bluetooth and Wi-Fi options Intelligent Mechatronic Systems (IMS)© . 2013
  27. 27. UBI 2.0 vs. 1.0 devices• More powerful• More versatile – Infotainment enhanced – All vehicle types – More ports – Able to add value added services• More connected – GSM/CDMA – Bluetooth/RFID/Wi-Fi• More reasonably priced Intelligent Mechatronic Systems (IMS)© . 2013
  28. 28. IMS mobile options1. Mobile Portal – Mobile option for PC-based portal – Enables real-time, mobile access to driving feedback2. Standalone UBI app – Fast & economical way to start UBI program – Captures a base level of data, utilizing a smartphone gateway3. Connected UBI app – Providing value-added Premium Services to customers – Offers new revenue streams 28
  29. 29. Fulfillment & logistics• Forward & reverse logistics• Re-use & refurbishment programs• Numerous courier companies• Currently process shipments within 24 hours (excl. holidays and weekends)• Real time inventory tracking 29 Intelligent Mechatronic Systems (IMS)© . 2013
  30. 30. IT infrastructure & data hosting• High availability, redundant & scalable• Fully virtualized “cloud” environment• Real time monitoring• Configurable data retention and warehousing• ISO 27000 & ITIL compliant 30 Intelligent Mechatronic Systems (IMS)© . 2013
  31. 31. Account management• UBI is a relationship not a transaction• Requires program management & partnership – Insurance carrier – IMS• Quality of service depends largely on account managers Intelligent Mechatronic Systems (IMS)© . 2013
  32. 32. Customer care• Service quality relies on excellent care• Tier 1 support usually handled by insurance carriers• Tier 2 & 3 support outsourced to IMS• Regular business hours – M to F: 8-9 ET – Sat.: 10-6 ET – Sun.: 10-4 ET Intelligent Mechatronic Systems (IMS)© . 2013
  33. 33. High level project plan Mth. 1 Mth. 2 Mth. 3 Mth. 4 Mth. 5 Mth. 6 Mth.7Agreements MSA/ X X X SOWIns. Carrier Req. Reqs. Customiz Testing UATIntegration review review ationHardware P.O. X X DeliveryAcquisitionProcess X X XmappingInfrastructure X XsetupJoint program TrialslaunchRoll-out Pilot Launch Intelligent Mechatronic Systems (IMS)© . 2013
  34. 34. Data, analytics & intelligence Intelligence Analytics Data Devices & Deployment (End-to-end solution) Business Foundation (Market Experience, Business Model and Adoption Programs) Intelligent Mechatronic Systems (IMS)© . 2013
  35. 35. IMS transforms data into Intelligence 2.) Context- relevant representation - Charts 3.) Intelligent analysis and1.) Smart data visualization acquisition -Trends -Scores 4.) Traveler- centric feedback -Portals -In vehicle Intelligent Mechatronic Systems (IMS)© . 2013
  36. 36. Data analysis - driving event recognition
  37. 37. Advanced scoring algorithms - samples
  38. 38. Blend of OBD2 & context relevant data
  39. 39. Data quality – key IMS differentiatorActual Driving Data (Toronto) Yellow = Raw GPS Red = IMS Derived Path
  40. 40. 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 Intelligent Mechatronic Systems (IMS)© . 2013
  41. 41. 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 Intelligent Mechatronic Systems (IMS)© . 2013
  42. 42. UBI 2.0: sophisticated ecosystem Content provider Business Value Process Added Consultants Service Auto dealers Analysts Auto OEMs Device players Intelligent Mechatronic Systems (IMS)© . 2013
  43. 43. 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 Intelligent Mechatronic Systems (IMS)© . 2013
  44. 44. IMS Highlights• Privately held technology company, founded in 1999• HQ in Waterloo, Ontario with 100+ highly qualified employees• Strong links with University of Waterloo: Joint research projects• Over 130 connected vehicle patents for informatics, driver analytics & vehicle safety• ISO 9001, ISO 14000 Certified, ISO 27001 & ITIL Compliant• IMS enables Usage-based insurance (UBI) with 8 of the top 25 US carriers• Member of ITS America, ITS Canada, ngConnect, & APMA Connected Vehicle Group• Recipient of numerous international awards Intelligent Mechatronic Systems (IMS) © . 2013
  45. 45. IMS is a unique blend ofTelematics & Infotainment 45 Intelligent Mechatronic Systems (IMS) © . 2013
  46. 46. For more information on IMS• Blair Currie • IMS Boot Camp VP Marketing ICTC 2013 – March 18th Intelligent Mechatronic Sheraton Centre, Toronto Systems (IMS) 435 King Street North Waterloo, Ontario Tel 519 745 8887 x. 4310 bcurrie@intellimec.com www.intellimec.com Intelligent Mechatronic Systems (IMS)© . 2013

×