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Major trends in ubi 2015


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Presentation made at the SMi conference in Feb 2015.
The internet of things effect on the insurance sector
Smartphonisation of UBI
Share of devices used in UBI by 2020
OEM activities in UBI
New players and supply chain disruption

Published in: Automotive
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Major trends in ubi 2015

  1. 1. PTOLEMUS Consulting Group Growth analysis and major trends in the European UBI market SMi’s Telematics for Usage-Based Insurance Conference London – 18th February 2015 - PTOLEMUS intellectual property
  2. 2. PTOLEMUS PTOLEMUS in a nutshell We help all players in the mobility ecosystem 2 ITS operators & regulators Fleets Fleets Mobile device & positioning suppliers Telecom operators Automotive OEMs & suppliers Financiers 2012 Directors’ report (translation from the Italian orig Insurers, aggregators & assistance providers Content & application providers OBD2 Bluetooth Dongle basic compatible car models Telematics solution providers
  3. 3. PTOLEMUS 3 The Internet of Things affects many insurance lines The car’s connections to other nodes and networks Source: PTOLEMUS e-health (V2P) Retail Digital home Smart Grid (V2G) Smart City Road network V2I, V2V, ETC Infotainment application integration Future device environment - Macro-trends 2
  4. 4. PTOLEMUS 3 Major trends that insurers must take into account Major trends Smartphonisation Massification Diversification Autonomous car Car as a Service Integration with claims Big data management Connected vehicle integration New entrants and models
  5. 5. PTOLEMUS 3 We will focus on these 5 trends Major trends Smartphonisation Massification Diversification Autonomous car Car as a Service Integration with claims Big data management Connected vehicle integration New entrants and models
  6. 6. PTOLEMUS Source: PTOLEMUS Smartphone-based offer is becoming the norm, first as a pre- quote rating tool 6 • Wunelli partnered with SSP for smartphone based UBI - 1,000 Brokers will be able to obtain a quote via SSP systems from a panel of Soteria Drive insurers • Other Wunelli-backed insurers, the AA, AXA and Co-operative have also launched their application • Aviva has launched its own application - For customers with premium above £400, discount can reach up to 20% (Score over 7.1) • So has Direct Line with discount of up to 10% 5Trends and growth factors - smartphonisation
  7. 7. PTOLEMUS Smartphones are the form factor of the future for UBI • 3M driving assistance app • 75% penetration: reach mass scale and new segments • More sensors than a black box (The Floow uses 9 of them) • Use as a universal interface, data hub or tracking device • Feature pilots include customer service, billing, payment, claims... • Can also complement other devices • Hybrid solution will rapidly calibrate smartphone algorithms • 80% of what black boxes do 7 Accelerometer 3-axis gyroscope Glonass Barometer Proximity sensor Light level Touch screen Camera(s) GPS location & timeWiFiNFC Bluetooth iBeacon Magneto- meter 4G connectivity Microphone Voice & messaging communication Fingerprint sensor A smartphone brings more sensors than a black box Trends and growth factors - smartphonisation Source: PTOLEMUS, The Floow
  8. 8. PTOLEMUS Total volumes of new policies sold by device type - OEM & aftermarket (million) Source: PTOLEMUS UBI market forecasts The EU5 device market will become more fragmented... 8 Mutation of device form factors - Market uptake 5 EU5 0 2 4 6 8 10 12 14 16 2012 2013 2014 2015 2016 2017 2018 2019 2020 EU5- Volumes of policies sold by device type (million) Line-fitted systems Smartphones Dash cameras Windscreen devices Self-install OBUs Professionally-installed OBUs Cut-down OBD dongles Rich OBD dongles
  9. 9. PTOLEMUS • Easy to develop - Standard cars API for all brands, standard OSs (Android, iOS, HTML5, Genivi, etc.) and SDK • Quick to market - Move dev timing from 4 years to 4 months. Set-up & update over the air, using smartphone‘s virtualization • Rich functionalities - Richer car APIs (command & control), standard home API, city API, health API, wearable API… • Supplier & customer agnostic - Standard app or white label app to be customised, no tie-in with suppliers => OAA will disrupt today’s connected service value chain Android is creating a smartphone-based data collection standard for the car industry 2 mainstream car makers Chinese OEMs 3 luxury car OEMs Key factors to attract apps developersOEMs that did not signed the OAA agreement 9 Trends and growth factors - smartcar
  10. 10. PTOLEMUS Source: PTOLEMUS, Renault Renault is the fist car manufacturer to build partnerships with a panel of insurers and to provide different UBI models 10 Renault's approach to telematics Trends and growth factors - smartcar Based on its R-link telematics platform, Renault offers 3 partnerships models to insurers: • B2B model offering access to R-Link data to any insurance company wanting to provide UBI under its own brand • A co-marketing model where the data is used in the same way but the branding and communication is shared between the 2 brands • A white label model where Renault sells telematics insurance under its own brand with an insurance company providing the underwriting only Renault’s projection is to have 200,000 R-Link equipped cars on the road by the end of 2014, and 2.3 million by 2020 Amaguiz chose the co-marketing model for its PAYD product
  11. 11. PTOLEMUS Annual global connected car sales by connectivity type (million units) Source: GSMA, Exane BNP Paribas estimates 2 We expect embedded solutions to gradually become dominant 11 Trends and growth factors - smartcar
  12. 12. PTOLEMUS Source: PTOLEMUS From the US come new models but also new dangers • New dedicated channel players: OEM, bCall, Claims, Aggregators, Actuarial & data houses • Upcoming disruption from the 2 giants - Google will enter the insurance market - Google could acquired an “Indy Dongle”and integrated its offer with its aggregator capabilities - Apple adds sensors to its iPhone every year - Apple has patent to provide e911 calls • A large number of well-funded B2C2B start-ups have emerged: Automatic, Mojio and Zubie - Started to offer a "free" channel to market to insurers 12 3Trends and growth factors - new models and changing ecosystem Insurers and service providers will need to keep a close watch on how this market evolve and be ready to partner with an adapted offer
  13. 13. PTOLEMUS Early partnership in the UBI ecosystem 13 • Wide range of functions and price • Independent dongle providers can become aggregators - 2-side model: VAS + UBI sales channel - Access to car + driver data - Natural data custodian • They will require a simplified rating process - ex: Progressive’s 3 criteria • Mobile operators are potential allies but their commitment needs to be validated • Car sharing transforms the car into a service - Insurers will need to provide specific covers Indy dongles are rapidly finding a place in this market Trends and growth factors - new models and changing ecosystem
  14. 14. PTOLEMUS 14 Key factors We expect over 100 million UBI customers worldwide by 2020 Source: PTOLEMUS UBI Global Study Global motor insurance premiums from telematics (€ in millions) 0 10 000 20 000 30 000 40 000 50 000 60 000 2012 2013 2014 2015 2016 2017 2018 2019 2020 UBI premium generated - Total market - Worldwide Europe North America Asia - Pacific LATAM Africa 1 • Global increase in online insurance • Regulatory mandates such as Contran 245, ERA Glonass or eCall • More connected services and vehicle leading to better optimisation • Chain reaction from the first leader • Since Progressive all US insurers have a UBI product • Since Industrial Alliance, 6 other insurers have followed in Canada • A new programme every 6 month appears in Germany • Generali has announced 2 UBI trials in Brazil • 2 brokers announced UBI programmes in the same month in Australia Trends and growth factors - the market opportunity 0 5 10 15 20 2012 2013 2014 2015 2016 2017 2018 2019 2020 France Germany Italy UK Rest of EU 27 Russia Rest of Europe New telematics-enabled policies (in millions) European personal line market
  15. 15. PTOLEMUS Conclusion UBI is heading towards the mass market. How to avoid becoming redundant by telematics newcomers? Thank you! • Insure you have solid and reliable app’s development capabilities • Produce individual and family insurance plans using pervasive connectivity • Migrate all insurance customer services on multi- device platforms • Reinforce internal IT system and data analytics to truly leverage telematics-based insurance data • Constantly monitor the telematics architecture’s evolution • Develop strong affinity partnerships with car makers, automobile clubs, dealerships and other types of devices • Export UBI model outside the car to other connected “Things” 15
  16. 16. PTOLEMUS Consulting Group S t r a t e g i e s f o r M o b i l e C o m p a n i e s Brussels - Boston - Chicago - Hamburg - London Milan - New York - Paris - Vienna @PTOLEMUS Thomas Hallauer, Research Director +44 7973 889 392 
  17. 17. PTOLEMUS PTOLEMUS in a nutshell Who we are 17 • The 1st international strategy consulting firm specialised in telematics and location-based services • Strategy combined with real industry expertise and operational experience • A focus on achieving results for our clients • Close links with the mobility ecosystem • Presence in 7 countries - Austria, Belgium, France, Germany, Italy, the UK & the US from Ptolemy, the Egyptian savant who built the 1st map of the world in the 2rd century • Over 20 consultants bringing 160 years of aggregated experience in telematics, geo- location & mobility • 50 assignments completed in last 5 years • Over $1 million revenues in 2014
  18. 18. PTOLEMUS PTOLEMUS in a nutshell An international management team 18 Brussels Frederic Bruneteau, Managing Director • MS. HEC Paris, MS. CEMS University of Cologne • Background: TomTom, Vodafone, Arthur D. Little, BNP Paribas • Specialties: LBS, telematics (eCall, UBI, etc.), mobile networks Frederic Lassara, Senior Expert • MSc. Management, Marseille Business School, Bachelor of Laws, University of Aix-Marseille & IHEDN • Background: PSA Peugeot Citroën, Covisint, Datops • Specialties: Automotive, telematics Chicago Valerie Shuman, Senior Expert • BA with highest honors from the University of Michigan • Background: Navteq, Ygomi, CVTA, SEI, Verety • Specialties: Connected vehicle services & content London Hamburg Meinrad Zeller, Senior Expert • MS Mathematics & Computer Science, Univ. of Göttingen • Background: TomTom, Philips Automotive, Philips Semiconductors • Specialties: Automotive telematics & electronics Milan Sergio Tusa, Associate Partner • MBA ISIDA Palermo & Law degree, Palermo • Background: Magneti Marelli, Cobra, Nokia, Tele Atlas, Philips • Specialties: Telematics, automotive, mapping Alex Willard, Director, Global Technology Practice • BSc. Engineering & Naval Architecture and MSc. Systems Monitoring & Diagnosis, Southampton City University • Background: Lysanda, MSX International, Ford, Roush Tech. • Specialties: Fleet telematics, car monitoring tools Boston Eric Pite, Associate Partner • M. Eng., Telecom ParisTech & MBA, London Business School • Background: TomTom, Motorola, Sendo, Sagem • Specialties: Consumer electronics, connected vehicle services Thomas Hallauer, Research & Marketing Director • BA, International Business, Southbank University London • Background: Mobile Devices, Telematics Update • Specialties: UBI, location-based services Maria Grazia Verardi, Senior Expert • MSc. Physics, Bologna University • Background: Cobra Automotive, Delta Electronics, Ylum • Specialties: Telematics, automotive, R&D in ITS Vienna Marijan Mumdziev, Senior Expert • PhD Computing, Univ. Vienna & MBA Univ. Minneapolis • Background: Deutsche Telekom, Nokia Siemens, Telekom Austria • Specialties: Mobile telecoms, UBI Paris New York
  19. 19. PTOLEMUS PTOLEMUS in a nutshell PTOLEMUS is the first strategy consulting firm focused on telematics and geolocation 19 Strategy definition Vision creation, strategic positioning, business plan development, board coaching & support Investment assistance Strategic due diligence, market assessment, feasibility study, M&A, post- acquisition plan Innovation management Value proposition definition, product & services development, architecture design, assistance to launch Business development Partnership strategies, detection of opportunities, ecosystem- building, response to tenders Our consulting services Procurement strategy Specification of requirements & tender documents, launch of tenders, supplier negotiation & selection Implementation Deployment plans, complex / high risk project & program management, risk analysis & mitigation strategy Usage-based charging PAYD / PHYD insurance, road charging / electronic tolling, fleet leasing & rental, car sharing, Car As A Service, etc. Telematics & Intelligent Transport Systems ADAS, connected vehicle, crowd-sourcing, fleet management, eCall, bCall, SVR, tracking, vehicle data analytics (OBD / CAN-bus), VRM, V2X, xFCD Positioning / Location enablement M2M & connectivity Our fields of expertise Car infotainment & navigation Connected services (Traffic information, fuel prices, speed cameras, weather, parking, points of interest, social networking), driver monitoring, maps, smartphone integration, smartphone-, PND- or embedded navigation,
  20. 20. 3 PTOLEMUS in a nutshell We just published the Usage-Based Insurance Global Study, the most comprehensive report written on the subject • 800 pages of in-depth analysis on the UBI market based on - 200+ interviews in 25 countries - 3 years of research performed by 6 consultants in 4 countries - The learnings from 15+ consulting assignments for insurers, OEMs, TSPs, investors, etc. - Our experience & vision of the ecosystem incl. OEMs and TSPs - 350+ figures (charts, tables, etc.) - 60 relevant patents listed • Case studies & learnings from ALD Automotive, Autoline, Allianz, Amaguiz, Carrot, Coverbox, Discovery Insure, Generali, GM OnStar, Hollard Insurance, Ingenie, Insurethebox, LeasePlan, Liberty Mutual, MAIF- MACIF, Norwich Union, Octo Telematics, Progressive, Solly Azar, Quindell, State Farm, Unipol, Uniqa, UK aggregators and Google, Young Marmalade, Zurich • Detailed profiles of - 20 insurance markets - 20 leading UBI insurers • A handbook of 45 suppliers' solutions including our own evaluation & ranking • 10-year market forecasts - Country's readiness to telematics - Forecasts for the Canadian, US, Latin American, European, Russian, African, Indian, Chinese and Japanese markets - Personal line / commercial line - Aftermarket / OEM • Insurer's telematics market model results in 5 markets • A complete set of recommendations to carriers, TSPs, OEMs, MNOs and governments • A strategic analysis of the value chain evolution including - The impacts of EOBR, eCall, CONTRAN 345, ERA Glonass, the Monti law, the gender ruling, etc. - The impact of the smartphone - Managing Big Data The global reference report on the subject, quoted by The Economist, the Financial Times and The Wall Street Journal Note: A free 100-page abstract can be downloaded from