SlideShare a Scribd company logo

Connected car & insurance

Even in the insurance sector, we are in the age of post-truth. Here I demystify some of the telematics myths thought facts and figures.

1 of 32
Download to read offline
September 6th 2018
Connected Car & Insurance
Views from the Observatory
Matteo Carbone
Founder and Director, IoT Insurance Observatory
@mcins_
2
UBI offers are out of there for years
Leave-in
Roll-over
7.5 M telematics policies
at the end of ’16
3.5 M cars connected
with an Insurer on ’16
(penetration 1.4%)
This way to deal with connected cars has failed
Almost 6%
smartphone
based
“Let me take a look to your driving behaviors you for few month,
I give you a small discount today and you could save a lot of
money at the renewal”
Source: Connected Insurance Observatory
2017 SLIDE
3
UBI offers have been out there for years
Leave-in
Roll-over
I’m sorry not to start with a message different from last September
“Let me take a look at your driving behaviors for a few months:
I’m giving you a small discount today (5%)
however you might save a lot of money at the renewal”
Source: IoT Insurance Observatory
8 M telematics policies
at the end of ‘17
4.4 M cars connected
with an Insurer in ‘17
(penetration 1.7%)
35%
smartphone
based
4
However 2018 has brought us an Insurtech telematics unicorn
• Auto telematics insurance carrier (founded in 2015)
• $177.5M of funding, last round at $1B evaluation
-
3
6
9
12
15
Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18
Lemonade
Root
Quarterly gross written premiums ($M)
5
Try-before-you-buy
1. A customer (not yet a policyholder) downloads
the app and fills-in his data
2. He drives and a driving score is calculated in 2-3
weeks of driving
3. He receives a quotation based both on his data -
the traditional ones - and his driving score
4. If he likes the proposed price for all the period of
coverage, he will purchase the policy and
become a policyholder
The Root telematics approach is not Usage-Based
Pay-per-mile
1. A customer purchases
the policy and
becomes a
policyholder
2. He plugs-in a dongle in
the car
3. Each month he pays a
different amount
based on the miles
driven plus a flat
monthly rate
Discount at renewal
1. A customer purchases the policy
with a small up-front discount
and becomes a policyholder
2. He plugs-in a dongle in the car or
downloads an app
3. He drives and a driving score is
calculated in a few months of
driving
4. He receives a renewal quotation
with discount based both on his
data - the traditional ones - and
his driving score
These 3 telematics approaches are completely different!
6
Telematics and insurance IoT are my passions
Matteo Carbone
InsurTech Investor and co-funder
Founder and Director of the IoT
Insurance Observatory
+11 years strategic consulting
(former Principal with Bain & co.)
Keynote speaker and writer on
insurance innovation
Global InsurTech Influencer
• This Insurance think tank has aggregated more
almost 50 international insurance groups,
institutions and tech firms between Europe and
North America
• The initiative has three concrete outcomes:
‒ The most pragmatic multiclient research
specialized in the insurance IoT domain
‒ One-to-one workshops dedicated to each
member to discuss research outcomes
‒ Plenary symposiums with all the members
together around the same table
I’m helping incumbents to concretely address the IoT opportunity
Ad

Recommended

The future of Auto insurance
The future of Auto insuranceThe future of Auto insurance
The future of Auto insuranceMatteo Carbone
 
Insurance IoT is about Value Sharing
Insurance IoT is about Value SharingInsurance IoT is about Value Sharing
Insurance IoT is about Value SharingMatteo Carbone
 
The New Connected Claim Paradigm
The New Connected Claim ParadigmThe New Connected Claim Paradigm
The New Connected Claim ParadigmMatteo Carbone
 
IoT Insurance Paradigm
IoT Insurance ParadigmIoT Insurance Paradigm
IoT Insurance ParadigmMatteo Carbone
 
IoT insurance lessons learned
IoT insurance lessons learnedIoT insurance lessons learned
IoT insurance lessons learnedMatteo Carbone
 
2019 IoT Insurance Observatory
2019 IoT Insurance Observatory2019 IoT Insurance Observatory
2019 IoT Insurance ObservatoryMatteo Carbone
 
2020 IoT Insurance Onservatory
2020 IoT Insurance Onservatory2020 IoT Insurance Onservatory
2020 IoT Insurance OnservatoryMatteo Carbone
 

More Related Content

What's hot

How an insurer can stay relevant in the age of data
How an insurer can stay relevant in the age of dataHow an insurer can stay relevant in the age of data
How an insurer can stay relevant in the age of dataMatteo Carbone
 
Connected Insurance Observatory
Connected Insurance  ObservatoryConnected Insurance  Observatory
Connected Insurance ObservatoryMatteo Carbone
 
IoT Insurance Observatory 2019
IoT Insurance Observatory 2019IoT Insurance Observatory 2019
IoT Insurance Observatory 2019Matteo Carbone
 
IoT Insurance Observatory
IoT Insurance Observatory IoT Insurance Observatory
IoT Insurance Observatory Matteo Carbone
 
Auto Insurers' Memento Mori
Auto Insurers' Memento MoriAuto Insurers' Memento Mori
Auto Insurers' Memento MoriMatteo Carbone
 
IoT Insurance Observatory 2020
IoT Insurance Observatory 2020IoT Insurance Observatory 2020
IoT Insurance Observatory 2020Matteo Carbone
 
Insurtech what’s in it for the customer
Insurtech what’s in it for the customerInsurtech what’s in it for the customer
Insurtech what’s in it for the customerMatteo Carbone
 
IoT Insurance Observatory 2021 edition
IoT Insurance Observatory 2021 editionIoT Insurance Observatory 2021 edition
IoT Insurance Observatory 2021 editionMatteo Carbone
 
All the insurance players will be insurtech
All the insurance players will be insurtechAll the insurance players will be insurtech
All the insurance players will be insurtechMatteo Carbone
 
Connected and Sustainable Insurance
Connected and Sustainable InsuranceConnected and Sustainable Insurance
Connected and Sustainable InsuranceMatteo Carbone
 
The Insurance IoT Opportunity
The Insurance IoT Opportunity The Insurance IoT Opportunity
The Insurance IoT Opportunity Matteo Carbone
 
The Connected Insurance Observatory
The Connected Insurance ObservatoryThe Connected Insurance Observatory
The Connected Insurance ObservatoryMatteo Carbone
 
InsurTech the game changer for motor insurance
InsurTech the game changer for motor insuranceInsurTech the game changer for motor insurance
InsurTech the game changer for motor insuranceMatteo Carbone
 
From Risk Transfer to Risk Prevention
From Risk Transfer to Risk PreventionFrom Risk Transfer to Risk Prevention
From Risk Transfer to Risk PreventionMatteo Carbone
 
Insurtech - Connected Insurance Observatory
Insurtech - Connected Insurance ObservatoryInsurtech - Connected Insurance Observatory
Insurtech - Connected Insurance ObservatoryMatteo Carbone
 
InsurTech in Asia - Swiss Re perspective
InsurTech in Asia - Swiss Re perspectiveInsurTech in Asia - Swiss Re perspective
InsurTech in Asia - Swiss Re perspectiveThe Digital Insurer
 

What's hot (20)

How an insurer can stay relevant in the age of data
How an insurer can stay relevant in the age of dataHow an insurer can stay relevant in the age of data
How an insurer can stay relevant in the age of data
 
IoT Ins Obs '19
IoT Ins Obs '19IoT Ins Obs '19
IoT Ins Obs '19
 
Connected Insurance Observatory
Connected Insurance  ObservatoryConnected Insurance  Observatory
Connected Insurance Observatory
 
IoT Insurance Observatory 2019
IoT Insurance Observatory 2019IoT Insurance Observatory 2019
IoT Insurance Observatory 2019
 
IoT Insurance Observatory
IoT Insurance Observatory IoT Insurance Observatory
IoT Insurance Observatory
 
Auto Insurers' Memento Mori
Auto Insurers' Memento MoriAuto Insurers' Memento Mori
Auto Insurers' Memento Mori
 
IoT Insurance Observatory 2020
IoT Insurance Observatory 2020IoT Insurance Observatory 2020
IoT Insurance Observatory 2020
 
Insurtech what’s in it for the customer
Insurtech what’s in it for the customerInsurtech what’s in it for the customer
Insurtech what’s in it for the customer
 
IoT Insurance Observatory 2021 edition
IoT Insurance Observatory 2021 editionIoT Insurance Observatory 2021 edition
IoT Insurance Observatory 2021 edition
 
IoT & Insurance
IoT & InsuranceIoT & Insurance
IoT & Insurance
 
IoTinsObs
IoTinsObsIoTinsObs
IoTinsObs
 
4 P's of Insurtech - Matteo Carbone
4 P's of Insurtech - Matteo Carbone4 P's of Insurtech - Matteo Carbone
4 P's of Insurtech - Matteo Carbone
 
All the insurance players will be insurtech
All the insurance players will be insurtechAll the insurance players will be insurtech
All the insurance players will be insurtech
 
Connected and Sustainable Insurance
Connected and Sustainable InsuranceConnected and Sustainable Insurance
Connected and Sustainable Insurance
 
The Insurance IoT Opportunity
The Insurance IoT Opportunity The Insurance IoT Opportunity
The Insurance IoT Opportunity
 
The Connected Insurance Observatory
The Connected Insurance ObservatoryThe Connected Insurance Observatory
The Connected Insurance Observatory
 
InsurTech the game changer for motor insurance
InsurTech the game changer for motor insuranceInsurTech the game changer for motor insurance
InsurTech the game changer for motor insurance
 
From Risk Transfer to Risk Prevention
From Risk Transfer to Risk PreventionFrom Risk Transfer to Risk Prevention
From Risk Transfer to Risk Prevention
 
Insurtech - Connected Insurance Observatory
Insurtech - Connected Insurance ObservatoryInsurtech - Connected Insurance Observatory
Insurtech - Connected Insurance Observatory
 
InsurTech in Asia - Swiss Re perspective
InsurTech in Asia - Swiss Re perspectiveInsurTech in Asia - Swiss Re perspective
InsurTech in Asia - Swiss Re perspective
 

Similar to Connected car & insurance

Telematics - The Secret to Lower Combined Ratios and a New Model for Auto Ins...
Telematics - The Secret to Lower Combined Ratios and a New Model for Auto Ins...Telematics - The Secret to Lower Combined Ratios and a New Model for Auto Ins...
Telematics - The Secret to Lower Combined Ratios and a New Model for Auto Ins...Matteo Carbone
 
Smarter Auto for the Hyperconnected World
Smarter Auto for the Hyperconnected World Smarter Auto for the Hyperconnected World
Smarter Auto for the Hyperconnected World Matteo Carbone
 
The Three Pillars of Connected Insurance
The Three Pillars of Connected InsuranceThe Three Pillars of Connected Insurance
The Three Pillars of Connected InsuranceAndrea Silvello
 
The Singapore FinTech Consortium - Introduction to InsurTech
The Singapore FinTech Consortium - Introduction to InsurTechThe Singapore FinTech Consortium - Introduction to InsurTech
The Singapore FinTech Consortium - Introduction to InsurTechFinTech Consortium
 
Digital Tech InsurTech Award Presentation
Digital Tech InsurTech Award PresentationDigital Tech InsurTech Award Presentation
Digital Tech InsurTech Award PresentationThe Digital Insurer
 
Top 10 Trends in Insurance 2016
Top 10 Trends in Insurance 2016Top 10 Trends in Insurance 2016
Top 10 Trends in Insurance 2016Luis Asenjo Perez
 
The Long Awaited Cloud Solution - How Cloud Computing Benefits Insurance & FSI
The Long Awaited Cloud Solution - How Cloud Computing Benefits Insurance & FSIThe Long Awaited Cloud Solution - How Cloud Computing Benefits Insurance & FSI
The Long Awaited Cloud Solution - How Cloud Computing Benefits Insurance & FSIPT Datacomm Diangraha
 
The full potential of insurance telematics
The full potential of insurance telematicsThe full potential of insurance telematics
The full potential of insurance telematicsMatteo Carbone
 
Is there a future for telematics in the Middle East?
Is there a future for telematics in the Middle East?Is there a future for telematics in the Middle East?
Is there a future for telematics in the Middle East?Frederik Bisbjerg
 
Connected Insurance Observatory
Connected Insurance ObservatoryConnected Insurance Observatory
Connected Insurance ObservatoryMatteo Carbone
 
Telematics - Bain Brief
Telematics - Bain BriefTelematics - Bain Brief
Telematics - Bain BriefMatteo Carbone
 
Insurance IoT Digital Report
Insurance IoT Digital ReportInsurance IoT Digital Report
Insurance IoT Digital ReportZsófia Kulcsár
 
MSIG Insurance (Singapore) Pte Ltd and Fermion Merimen - Insurer Innovation A...
MSIG Insurance (Singapore) Pte Ltd and Fermion Merimen - Insurer Innovation A...MSIG Insurance (Singapore) Pte Ltd and Fermion Merimen - Insurer Innovation A...
MSIG Insurance (Singapore) Pte Ltd and Fermion Merimen - Insurer Innovation A...The Digital Insurer
 
Motor insurance: services telematics based
Motor insurance: services telematics basedMotor insurance: services telematics based
Motor insurance: services telematics basedMatteo Carbone
 
Internet of Things is Poised to Transform the Insurance Sector
Internet of Things is Poised to Transform the Insurance SectorInternet of Things is Poised to Transform the Insurance Sector
Internet of Things is Poised to Transform the Insurance SectorPaasmer
 
Top insurance industry trends 2020
Top insurance industry trends 2020Top insurance industry trends 2020
Top insurance industry trends 2020KristineSheppard
 
Are you ready to be an Insurer of Things? How the Internet of Things is chang...
Are you ready to be an Insurer of Things? How the Internet of Things is chang...Are you ready to be an Insurer of Things? How the Internet of Things is chang...
Are you ready to be an Insurer of Things? How the Internet of Things is chang...Accenture Insurance
 
Group 22 Insurance Whitepaper
Group 22 Insurance WhitepaperGroup 22 Insurance Whitepaper
Group 22 Insurance WhitepaperLinda Hill
 
Nationwide Insurance - Using a Decade of Learnings to Create Next-Generation ...
Nationwide Insurance - Using a Decade of Learnings to Create Next-Generation ...Nationwide Insurance - Using a Decade of Learnings to Create Next-Generation ...
Nationwide Insurance - Using a Decade of Learnings to Create Next-Generation ...Matteo Carbone
 

Similar to Connected car & insurance (20)

Telematics - The Secret to Lower Combined Ratios and a New Model for Auto Ins...
Telematics - The Secret to Lower Combined Ratios and a New Model for Auto Ins...Telematics - The Secret to Lower Combined Ratios and a New Model for Auto Ins...
Telematics - The Secret to Lower Combined Ratios and a New Model for Auto Ins...
 
Smarter Auto for the Hyperconnected World
Smarter Auto for the Hyperconnected World Smarter Auto for the Hyperconnected World
Smarter Auto for the Hyperconnected World
 
The Three Pillars of Connected Insurance
The Three Pillars of Connected InsuranceThe Three Pillars of Connected Insurance
The Three Pillars of Connected Insurance
 
The Singapore FinTech Consortium - Introduction to InsurTech
The Singapore FinTech Consortium - Introduction to InsurTechThe Singapore FinTech Consortium - Introduction to InsurTech
The Singapore FinTech Consortium - Introduction to InsurTech
 
Digital Tech InsurTech Award Presentation
Digital Tech InsurTech Award PresentationDigital Tech InsurTech Award Presentation
Digital Tech InsurTech Award Presentation
 
Top 10 Trends in Insurance 2016
Top 10 Trends in Insurance 2016Top 10 Trends in Insurance 2016
Top 10 Trends in Insurance 2016
 
The Long Awaited Cloud Solution - How Cloud Computing Benefits Insurance & FSI
The Long Awaited Cloud Solution - How Cloud Computing Benefits Insurance & FSIThe Long Awaited Cloud Solution - How Cloud Computing Benefits Insurance & FSI
The Long Awaited Cloud Solution - How Cloud Computing Benefits Insurance & FSI
 
The full potential of insurance telematics
The full potential of insurance telematicsThe full potential of insurance telematics
The full potential of insurance telematics
 
Is there a future for telematics in the Middle East?
Is there a future for telematics in the Middle East?Is there a future for telematics in the Middle East?
Is there a future for telematics in the Middle East?
 
Connected Insurance Observatory
Connected Insurance ObservatoryConnected Insurance Observatory
Connected Insurance Observatory
 
Telematics - Bain Brief
Telematics - Bain BriefTelematics - Bain Brief
Telematics - Bain Brief
 
Insurance IoT Digital Report
Insurance IoT Digital ReportInsurance IoT Digital Report
Insurance IoT Digital Report
 
MSIG Insurance (Singapore) Pte Ltd and Fermion Merimen - Insurer Innovation A...
MSIG Insurance (Singapore) Pte Ltd and Fermion Merimen - Insurer Innovation A...MSIG Insurance (Singapore) Pte Ltd and Fermion Merimen - Insurer Innovation A...
MSIG Insurance (Singapore) Pte Ltd and Fermion Merimen - Insurer Innovation A...
 
Insurance reimagined
Insurance reimagined  Insurance reimagined
Insurance reimagined
 
Motor insurance: services telematics based
Motor insurance: services telematics basedMotor insurance: services telematics based
Motor insurance: services telematics based
 
Internet of Things is Poised to Transform the Insurance Sector
Internet of Things is Poised to Transform the Insurance SectorInternet of Things is Poised to Transform the Insurance Sector
Internet of Things is Poised to Transform the Insurance Sector
 
Top insurance industry trends 2020
Top insurance industry trends 2020Top insurance industry trends 2020
Top insurance industry trends 2020
 
Are you ready to be an Insurer of Things? How the Internet of Things is chang...
Are you ready to be an Insurer of Things? How the Internet of Things is chang...Are you ready to be an Insurer of Things? How the Internet of Things is chang...
Are you ready to be an Insurer of Things? How the Internet of Things is chang...
 
Group 22 Insurance Whitepaper
Group 22 Insurance WhitepaperGroup 22 Insurance Whitepaper
Group 22 Insurance Whitepaper
 
Nationwide Insurance - Using a Decade of Learnings to Create Next-Generation ...
Nationwide Insurance - Using a Decade of Learnings to Create Next-Generation ...Nationwide Insurance - Using a Decade of Learnings to Create Next-Generation ...
Nationwide Insurance - Using a Decade of Learnings to Create Next-Generation ...
 

More from Matteo Carbone

The State Farm Vision - Ecosystem Capabilities for the Insurer of the Future.pdf
The State Farm Vision - Ecosystem Capabilities for the Insurer of the Future.pdfThe State Farm Vision - Ecosystem Capabilities for the Insurer of the Future.pdf
The State Farm Vision - Ecosystem Capabilities for the Insurer of the Future.pdfMatteo Carbone
 
IoT Insurance Observatory - Summary.pdf
IoT Insurance Observatory - Summary.pdfIoT Insurance Observatory - Summary.pdf
IoT Insurance Observatory - Summary.pdfMatteo Carbone
 
Do you think insurers are not innovative.pdf
Do you think insurers are not innovative.pdfDo you think insurers are not innovative.pdf
Do you think insurers are not innovative.pdfMatteo Carbone
 
IoT Insurance Observatory 2023.pdf
IoT Insurance Observatory 2023.pdfIoT Insurance Observatory 2023.pdf
IoT Insurance Observatory 2023.pdfMatteo Carbone
 
2022-10-sri-wefox-mobility-platforms one page
2022-10-sri-wefox-mobility-platforms one page2022-10-sri-wefox-mobility-platforms one page
2022-10-sri-wefox-mobility-platforms one pageMatteo Carbone
 
IoT Insurance Observatory
IoT Insurance ObservatoryIoT Insurance Observatory
IoT Insurance ObservatoryMatteo Carbone
 
IoT Insurance Observatory
IoT Insurance ObservatoryIoT Insurance Observatory
IoT Insurance ObservatoryMatteo Carbone
 
From Risk Transfer to Risk Prevention - How the Internet of Things is Reshapi...
From Risk Transfer to Risk Prevention - How the Internet of Things is Reshapi...From Risk Transfer to Risk Prevention - How the Internet of Things is Reshapi...
From Risk Transfer to Risk Prevention - How the Internet of Things is Reshapi...Matteo Carbone
 
Vitality drive white paper june 2021
Vitality drive white paper june 2021Vitality drive white paper june 2021
Vitality drive white paper june 2021Matteo Carbone
 
A new insurance paradigm for the hyperconnected world
A new insurance paradigm for the hyperconnected worldA new insurance paradigm for the hyperconnected world
A new insurance paradigm for the hyperconnected worldMatteo Carbone
 
A.M. Best IoT March 2018
A.M. Best IoT March 2018A.M. Best IoT March 2018
A.M. Best IoT March 2018Matteo Carbone
 

More from Matteo Carbone (13)

The State Farm Vision - Ecosystem Capabilities for the Insurer of the Future.pdf
The State Farm Vision - Ecosystem Capabilities for the Insurer of the Future.pdfThe State Farm Vision - Ecosystem Capabilities for the Insurer of the Future.pdf
The State Farm Vision - Ecosystem Capabilities for the Insurer of the Future.pdf
 
IoT Insurance Observatory - Summary.pdf
IoT Insurance Observatory - Summary.pdfIoT Insurance Observatory - Summary.pdf
IoT Insurance Observatory - Summary.pdf
 
Do you think insurers are not innovative.pdf
Do you think insurers are not innovative.pdfDo you think insurers are not innovative.pdf
Do you think insurers are not innovative.pdf
 
IoT Insurance Observatory 2023.pdf
IoT Insurance Observatory 2023.pdfIoT Insurance Observatory 2023.pdf
IoT Insurance Observatory 2023.pdf
 
2022-10-sri-wefox-mobility-platforms one page
2022-10-sri-wefox-mobility-platforms one page2022-10-sri-wefox-mobility-platforms one page
2022-10-sri-wefox-mobility-platforms one page
 
Italy Insurance Forum
Italy Insurance ForumItaly Insurance Forum
Italy Insurance Forum
 
Telematics survey
Telematics surveyTelematics survey
Telematics survey
 
IoT Insurance Observatory
IoT Insurance ObservatoryIoT Insurance Observatory
IoT Insurance Observatory
 
IoT Insurance Observatory
IoT Insurance ObservatoryIoT Insurance Observatory
IoT Insurance Observatory
 
From Risk Transfer to Risk Prevention - How the Internet of Things is Reshapi...
From Risk Transfer to Risk Prevention - How the Internet of Things is Reshapi...From Risk Transfer to Risk Prevention - How the Internet of Things is Reshapi...
From Risk Transfer to Risk Prevention - How the Internet of Things is Reshapi...
 
Vitality drive white paper june 2021
Vitality drive white paper june 2021Vitality drive white paper june 2021
Vitality drive white paper june 2021
 
A new insurance paradigm for the hyperconnected world
A new insurance paradigm for the hyperconnected worldA new insurance paradigm for the hyperconnected world
A new insurance paradigm for the hyperconnected world
 
A.M. Best IoT March 2018
A.M. Best IoT March 2018A.M. Best IoT March 2018
A.M. Best IoT March 2018
 

Recently uploaded

02.22.2024 Email Options in Bloomerang.pdf
02.22.2024 Email Options in Bloomerang.pdf02.22.2024 Email Options in Bloomerang.pdf
02.22.2024 Email Options in Bloomerang.pdfBloomerang
 
Eni: fourth quarter and full year 2023 results
Eni: fourth quarter and full year 2023 resultsEni: fourth quarter and full year 2023 results
Eni: fourth quarter and full year 2023 resultsEni
 
EAPJ Vol VIII February 2024.pdf
EAPJ Vol VIII February 2024.pdfEAPJ Vol VIII February 2024.pdf
EAPJ Vol VIII February 2024.pdfDarryl_Carr
 
IT Nation Evolve event 2024 - Quarter 1 - Event
IT Nation Evolve event 2024 - Quarter 1 - EventIT Nation Evolve event 2024 - Quarter 1 - Event
IT Nation Evolve event 2024 - Quarter 1 - EventInbay UK
 
How to Get Around Sales Objection | The SMART Sales Systems
How to Get Around Sales Objection | The SMART Sales SystemsHow to Get Around Sales Objection | The SMART Sales Systems
How to Get Around Sales Objection | The SMART Sales SystemsSalesScripter
 
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...Supavadee(Noi) Tantiyanon
 
Grevault battery storage system manufacturer
Grevault battery storage system manufacturerGrevault battery storage system manufacturer
Grevault battery storage system manufacturerGrevault
 
02.20 Webinar - Online Giving Trends.pdf
02.20 Webinar - Online Giving Trends.pdf02.20 Webinar - Online Giving Trends.pdf
02.20 Webinar - Online Giving Trends.pdfBloomerang
 
Ch 11 Haunted Castle on Hallows Eve.pptx
Ch 11 Haunted Castle on Hallows Eve.pptxCh 11 Haunted Castle on Hallows Eve.pptx
Ch 11 Haunted Castle on Hallows Eve.pptxdeveloperarafat360
 
Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024Neil Kimberley
 
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)SYYIR
 
HPM Panther (Captan 50% WP) Presentation
HPM Panther (Captan 50% WP) PresentationHPM Panther (Captan 50% WP) Presentation
HPM Panther (Captan 50% WP) PresentationHpm India
 
FICCI Monthly Bulletin February 2024.pdf
FICCI  Monthly Bulletin February 2024.pdfFICCI  Monthly Bulletin February 2024.pdf
FICCI Monthly Bulletin February 2024.pdfsubarnamostafa1
 
Clean/Renewable Energy Virtual Investor Conference
Clean/Renewable Energy Virtual Investor ConferenceClean/Renewable Energy Virtual Investor Conference
Clean/Renewable Energy Virtual Investor ConferenceMarketing847413
 
Sample Competitors' SWOT Analysis for your SEO Strategy
Sample Competitors' SWOT Analysis for your SEO StrategySample Competitors' SWOT Analysis for your SEO Strategy
Sample Competitors' SWOT Analysis for your SEO StrategyRemar Barquilla
 
Hershey Presentation at 2024 CAGY Conference
Hershey Presentation at 2024 CAGY ConferenceHershey Presentation at 2024 CAGY Conference
Hershey Presentation at 2024 CAGY ConferenceNeil Kimberley
 
Truths and Myths of Innovation and Entrepreneurship
Truths and Myths of Innovation and EntrepreneurshipTruths and Myths of Innovation and Entrepreneurship
Truths and Myths of Innovation and EntrepreneurshipYannis Charalabidis
 

Recently uploaded (20)

02.22.2024 Email Options in Bloomerang.pdf
02.22.2024 Email Options in Bloomerang.pdf02.22.2024 Email Options in Bloomerang.pdf
02.22.2024 Email Options in Bloomerang.pdf
 
Eni: fourth quarter and full year 2023 results
Eni: fourth quarter and full year 2023 resultsEni: fourth quarter and full year 2023 results
Eni: fourth quarter and full year 2023 results
 
EAPJ Vol VIII February 2024.pdf
EAPJ Vol VIII February 2024.pdfEAPJ Vol VIII February 2024.pdf
EAPJ Vol VIII February 2024.pdf
 
Polyene General Industries Private Limited
Polyene General Industries Private LimitedPolyene General Industries Private Limited
Polyene General Industries Private Limited
 
IT Nation Evolve event 2024 - Quarter 1 - Event
IT Nation Evolve event 2024 - Quarter 1 - EventIT Nation Evolve event 2024 - Quarter 1 - Event
IT Nation Evolve event 2024 - Quarter 1 - Event
 
Bryan_Cassady - AI Powered Innovation.pdf
Bryan_Cassady - AI Powered Innovation.pdfBryan_Cassady - AI Powered Innovation.pdf
Bryan_Cassady - AI Powered Innovation.pdf
 
How to Get Around Sales Objection | The SMART Sales Systems
How to Get Around Sales Objection | The SMART Sales SystemsHow to Get Around Sales Objection | The SMART Sales Systems
How to Get Around Sales Objection | The SMART Sales Systems
 
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...
Decoding Generative AI-AI Playbook for Marketing Students_UPower DUGA_Supavad...
 
Grevault battery storage system manufacturer
Grevault battery storage system manufacturerGrevault battery storage system manufacturer
Grevault battery storage system manufacturer
 
02.20 Webinar - Online Giving Trends.pdf
02.20 Webinar - Online Giving Trends.pdf02.20 Webinar - Online Giving Trends.pdf
02.20 Webinar - Online Giving Trends.pdf
 
Ch 11 Haunted Castle on Hallows Eve.pptx
Ch 11 Haunted Castle on Hallows Eve.pptxCh 11 Haunted Castle on Hallows Eve.pptx
Ch 11 Haunted Castle on Hallows Eve.pptx
 
Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024
 
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)SYY CAGNY 2024 PRESENTATION (February 20, 2024)
SYY CAGNY 2024 PRESENTATION (February 20, 2024)
 
Martez Knox - How AI is Redefining the Cannabis Industry (Final) (2).pdf
Martez Knox - How AI is Redefining the Cannabis Industry (Final) (2).pdfMartez Knox - How AI is Redefining the Cannabis Industry (Final) (2).pdf
Martez Knox - How AI is Redefining the Cannabis Industry (Final) (2).pdf
 
HPM Panther (Captan 50% WP) Presentation
HPM Panther (Captan 50% WP) PresentationHPM Panther (Captan 50% WP) Presentation
HPM Panther (Captan 50% WP) Presentation
 
FICCI Monthly Bulletin February 2024.pdf
FICCI  Monthly Bulletin February 2024.pdfFICCI  Monthly Bulletin February 2024.pdf
FICCI Monthly Bulletin February 2024.pdf
 
Clean/Renewable Energy Virtual Investor Conference
Clean/Renewable Energy Virtual Investor ConferenceClean/Renewable Energy Virtual Investor Conference
Clean/Renewable Energy Virtual Investor Conference
 
Sample Competitors' SWOT Analysis for your SEO Strategy
Sample Competitors' SWOT Analysis for your SEO StrategySample Competitors' SWOT Analysis for your SEO Strategy
Sample Competitors' SWOT Analysis for your SEO Strategy
 
Hershey Presentation at 2024 CAGY Conference
Hershey Presentation at 2024 CAGY ConferenceHershey Presentation at 2024 CAGY Conference
Hershey Presentation at 2024 CAGY Conference
 
Truths and Myths of Innovation and Entrepreneurship
Truths and Myths of Innovation and EntrepreneurshipTruths and Myths of Innovation and Entrepreneurship
Truths and Myths of Innovation and Entrepreneurship
 

Connected car & insurance

  • 1. September 6th 2018 Connected Car & Insurance Views from the Observatory Matteo Carbone Founder and Director, IoT Insurance Observatory @mcins_
  • 2. 2 UBI offers are out of there for years Leave-in Roll-over 7.5 M telematics policies at the end of ’16 3.5 M cars connected with an Insurer on ’16 (penetration 1.4%) This way to deal with connected cars has failed Almost 6% smartphone based “Let me take a look to your driving behaviors you for few month, I give you a small discount today and you could save a lot of money at the renewal” Source: Connected Insurance Observatory 2017 SLIDE
  • 3. 3 UBI offers have been out there for years Leave-in Roll-over I’m sorry not to start with a message different from last September “Let me take a look at your driving behaviors for a few months: I’m giving you a small discount today (5%) however you might save a lot of money at the renewal” Source: IoT Insurance Observatory 8 M telematics policies at the end of ‘17 4.4 M cars connected with an Insurer in ‘17 (penetration 1.7%) 35% smartphone based
  • 4. 4 However 2018 has brought us an Insurtech telematics unicorn • Auto telematics insurance carrier (founded in 2015) • $177.5M of funding, last round at $1B evaluation - 3 6 9 12 15 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Lemonade Root Quarterly gross written premiums ($M)
  • 5. 5 Try-before-you-buy 1. A customer (not yet a policyholder) downloads the app and fills-in his data 2. He drives and a driving score is calculated in 2-3 weeks of driving 3. He receives a quotation based both on his data - the traditional ones - and his driving score 4. If he likes the proposed price for all the period of coverage, he will purchase the policy and become a policyholder The Root telematics approach is not Usage-Based Pay-per-mile 1. A customer purchases the policy and becomes a policyholder 2. He plugs-in a dongle in the car 3. Each month he pays a different amount based on the miles driven plus a flat monthly rate Discount at renewal 1. A customer purchases the policy with a small up-front discount and becomes a policyholder 2. He plugs-in a dongle in the car or downloads an app 3. He drives and a driving score is calculated in a few months of driving 4. He receives a renewal quotation with discount based both on his data - the traditional ones - and his driving score These 3 telematics approaches are completely different!
  • 6. 6 Telematics and insurance IoT are my passions Matteo Carbone InsurTech Investor and co-funder Founder and Director of the IoT Insurance Observatory +11 years strategic consulting (former Principal with Bain & co.) Keynote speaker and writer on insurance innovation Global InsurTech Influencer • This Insurance think tank has aggregated more almost 50 international insurance groups, institutions and tech firms between Europe and North America • The initiative has three concrete outcomes: ‒ The most pragmatic multiclient research specialized in the insurance IoT domain ‒ One-to-one workshops dedicated to each member to discuss research outcomes ‒ Plenary symposiums with all the members together around the same table I’m helping incumbents to concretely address the IoT opportunity
  • 7. 7 The most pragmatic multiclient research specialized in the insurance IoT domain One-to-one workshops dedicated to each member to discuss the research outcomes Plenary symposiums with all the members together around the same table I have created a think tank which provides the members access to the most relevant insurance IoT knowledge globally
  • 8. 8 My experience with IoT insurance Organizations In the past 6 years, I advised more than 90 organizations (Insurer, Reinsurers, Brokers, Vendors, and Investors) in more than 15 different countries on IoT insurance projects 90 Market share I’ve worked directly with players accounting for more than 80% of IoT insurance volumes (number of policies on auto telematics, smart home, and connected health) +80% 6 +900 +80 Conferences I have debated the insurance IoT opportunity at more than 80 conferences around the word since December 2015 Papers I have produced 6 white papers on Insurance IoT, which have been co-authored with prestigious international organizations (3 are to be published in the following months) Hours More than 900 hours discussing concrete experiences, best practices and pitfalls with the executives of the organization members of the Observatory
  • 9. 9 Telematics is usage-based insurance Telematics is about how to collect data to find a profitable underwriting formula It’s is impossible for an insurer to charge fees to customers for services By 2020 the insurance Telematics market will have grown exponentially Even in the insurance sector, we are in the age of post truth Customers don’t want to share data with us Converting telematics data into actionable insights is still a wish… we are not yet ready to make smart actions Telematics is not able to select risks better than the credit scoring There is no ROI on telematics, it is only premium shrinking To make insurance telematics works insurers need to work with OEMs Typical phrases I have heard at those conferences Customers don’t want to share data with us
  • 10. 10 14 million customers around the world have shared data with their auto insurers around the word 7,10 4,41 1,09 Other European markets US UKItaly Canada 0.35 South Africa Germany France 0.25 Spain 0.07 Other markets Total 0.53 0.20 0.13 0.10 14 M Source: IoT Insurance Observatory estimates Austria 0,05 Benelux 0,04 Russia 0,04 Switzerland 0,03 Denmark 0,02 Norway 0,01 Sweden 0,01 The problem is the offer (insurance products), not the demand (customers)
  • 11. 11 Telematics is usage-based insurance Telematics is about how to collect data to find a profitable underwriting formula It’s is impossible for an insurer to charge fees to customers for services By 2020 the insurance Telematics market will have grown exponentially Even in the insurance sector, we are in the age of post truth Customers don’t want to share data with us Converting telematics data into actionable insights is still a wish… we are not yet ready to make smart actions Telematics is not able to select risks better than the credit scoring There is no ROI on telematics, it is only premium shrinking To make insurance telematics works insurers need to work with OEMs Typical phrases I have heard at those conferences
  • 12. 12 Nothing happens overnight in the insurance sector Where do they expect to see the missing millions of telematics policies showing-up?
  • 13. 13 Telematics is usage-based insurance Telematics is about how to collect data to find a profitable underwriting formula It’s is impossible for an insurer to charge fees to customers for services By 2020 the insurance Telematics market will have grown exponentially Even in the insurance sector, we are in the age of post truth Customers don’t want to share data with us Converting telematics data into actionable insights is still a wish… we are not yet ready to make smart actions Telematics is not able to select risks better than the credit scoring There is no ROI on telematics, it is only premium shrinking To make insurance telematics works insurers need to work with OEMs Typical phrases I have heard at those conferences
  • 14. 14 More than 99% of the current global insurance telematics policies receive data form aftermarket devices or apps Source of telematics data By number of policies (global market) SMARTPHONE 14% OBD 26% WINDSCREEN 3% SELF INSTALLED 22% PROFESSIONALLY INSTALLED 35% Some insurers have developed their after- market connected insurance strategy while you were waiting for the OEM data
  • 15. 15 Telematics is usage-based insurance Telematics is about how to collect data to find a profitable underwriting formula It’s is impossible for an insurer to charge fees to customers for services By 2020 the insurance Telematics market will have grown exponentially Even in the insurance sector, we are in the age of post truth Customers don’t want to share data with us Converting telematics data into actionable insights is still a wish… we are not yet ready to make smart actions Telematics is not able to select risks better than the credit scoring There is no ROI on telematics, it is only premium shrinking To make insurance telematics works insurers need to work with OEMs Typical phrases I have heard at those conferences
  • 16. 16 Both in Italy and South Africa insurers are selling the customer telematics based services with an annual fee Source: Connected Insurance Observatory Automatic assistance to the client on the premises in case of severe accident Simplified claim notification, including automatic form fill-in based on telematics data Claim certification at client’s disposal Short-time theft cover Parking localization Alert in case the vehicle is moved when the engine is off (e.g. tow-away) Car’s hearth rate monitoring 111213141516 Antitheft service if the box is removed/uninstalled While Driving In case of crash When parked Weather alert based on geo-localization 4 Alert in case speed limits are exceeded 2 Highway/parking area tolling 6 Road or medical assistance via dedicated button 8 Client assistance and personalized case management in case of crash 9 10 17 Bodyguard for emergency outside the car when parked Stolen vehicle recovery Alert if the car is hit when parked 18 19 20 "Live" concierge supporting navigation 1 3 Antitheft service if the box registers a different- than-usual driving style 5 Alert if the vehicle exits a "safe area" (or enters an "unsafe area") of the city, defined by the client (e.g. parental control options) Risks on usual routes warning 7
  • 17. 17 Telematics is usage-based insurance Telematics is about how to collect data to find a profitable underwriting formula It’s is impossible for an insurer to charge fees to customers for services By 2020 the insurance Telematics market will have grown exponentially Even in the insurance sector, we are in the age of post truth Customers don’t want to share data with us Converting telematics data into actionable insights is still a wish… we are not yet ready to make smart actions Telematics is not able to select risks better than the credit scoring There is no ROI on telematics, it is only premium shrinking To make insurance telematics works insurers need to work with OEMs Typical phrases I have heard at those conferences
  • 18. 18 Self-selected risks due to product features An auto telematics value proposition focused on the claims monitoring has a terrific effect on the acquisition of low risk clients Market average (20%) Claims frequency (district average) Black box effect on claims frequency (risk adjusted) Black box impact by district Market average -20% 3.0 6.0 6.5%Market average 4,8% 4.5 REAL CASE Even if two customers seem to be equal based on their characteristics. The one who accepts the telematics value proposition is 20% less risky
  • 19. 19 Telematics is usage-based insurance Telematics is about how to collect data to find a profitable underwriting formula It’s is impossible for an insurer to charge fees to customers for services By 2020 the insurance Telematics market will have grown exponentially Even in the insurance sector, we are in the age of post truth Customers don’t want to share data with us Converting telematics data into actionable insights is still a wish… we are not yet ready to make smart actions Telematics is not able to select risks better than the credit scoring There is no ROI on telematics, it is only premium shrinking To make insurance telematics works insurers need to work with OEMs Typical phrases I have heard at those conferences
  • 20. 20 Reinvented the claim process through the usage of telematics data 10:40 09/06 10:43 10:58 11:40 13:00 09/07 …Assistance on site, collection of additional information First contact with the client for assistance, start of claim management and responsibility definition Adjuster operation in the preferred body shop (geo-located), with crash information shared with the adjuster Prompt definition of the exposure Digital customer interactions and claim tracking Eventual medial visits, with crash information shared with the doctor … Adjudication and negotiation leveraging the objective information obtained form the telematics data Settlement and payment$$$ REAL CASES
  • 21. 21 Enhanced the effectiveness of the claim evaluation and the efficiency of the claim process Who here thinks that this is a tool which will bring benefits to your claim handlers’ activities? Please raise your hand Photo credit: UnipolSai REAL CASE
  • 22. 22 Telematics is usage-based insurance Telematics is about how to collect data to find a profitable underwriting formula It’s is impossible for an insurer to charge fees to customers for services By 2020 the insurance Telematics market will have grown exponentially Even in the insurance sector, we are in the age of post truth Customers don’t want to share data with us Converting telematics data into actionable insights is still a wish… we are not yet ready to make smart actions Telematics is not able to select risks better than the credit scoring There is no ROI on telematics, it is only premium shrinking To make insurance telematics works insurers need to work with OEMs Typical phrases I have heard at those conferences
  • 23. 23 Repeat weekly Drive event-free for 100 consecutive kilometers Event-free driving for 100km Achieve your driving goal Get rewarded Trip Score = 80 Minute = 50 Km = 30 Trip Score = 87 Minute = 75 Km = 50 Trip Score = 65 Minute = 35 Km = 25 Upload telematics data by Friday 23:59 for the week’s trips to count towards the week’s score Trip 01 Trip 02 Trip 03 MONDAY WEDNESDAY THURSDAY INSTANT REWARD A free coffee, smoothie or parking voucher for every 100 consecutive kilometers of event- free driving (one reward a week) Discovery Insure have use telematics to influence the driver behavior by rewarding them with a cup of coffee or a smoothie
  • 24. 24 Telematics is usage-based insurance Telematics is about how to collect data to find a profitable underwriting formula It’s is impossible for an insurer to charge fees to customers for services By 2020 the insurance Telematics market will have grown exponentially Even in the insurance sector, we are in the age of post truth Customers don’t want to share data with us Converting telematics data into actionable insights is still a wish… we are not yet ready to make smart actions Telematics is not able to select risks better than the credit scoring There is no ROI on telematics, it is only premium shrinking To make insurance telematics works insurers need to work with OEMs Typical phrases I have heard at those conferences
  • 25. 25 They are the same kind of benefits achieved with the adoption of the credit score decades ago 02 01 03 04 If he like the proposed price for all the period of coverage, he will purchase the policy and become a policyholder He drives and a driving score is calculated in 2-3 weeks of driving He receives a quotation based both on his data - the traditional ones - and his driving score A customer (not yet a policyholder) download the app and fill in his data TRY-BEFORE-YOU-BUY INSURER ECONOMIC BENEFITS Positive selection Attracting the best risks for each pricing level (leaving the worst to the competitors) Premium leakage reduction Having all the policies underwritten with a more accurate price (smaller clusters) The usage of a driving score at the underwriting stage is not usage based insurance
  • 26. 26 Telematics is usage-based insurance Telematics is about how to collect data to find a profitable underwriting formula It’s is impossible for an insurer to charge fees to customers for services By 2020 the insurance Telematics market will have grown exponentially Even in the insurance sector, we are in the age of post truth Customers don’t want to share data with us Converting telematics data into actionable insights is still a wish… we are not yet ready to make smart actions Telematics is not able to select risks better than the credit scoring There is no ROI on telematics, it is only premium shrinking To make insurance telematics works insurers need to work with OEMs Typical phrases I have heard at those conferences
  • 27. 27 The value creation framework Traditional bottom line Service fees paid by the customer SERVICES
  • 28. 28 The sustainability of these kind of models is enbled by the ability to orchestrate the partners’ contributions Jun-11 Dec-11 Mar-15 Sep-11 Dec-15 Mar-12 Jun-15 Jun-12 Dec-14 Sep-12 Mar-13 Dec-12 Sep-15 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Number of Insured veicles >200,000 cars Discovery scaled-up its telematics book with a value proposition based on the promise to receive back up to 50% of monthly gas spending
  • 29. 29 The value creation framework Incentives and discounts are ways of sharing with the customer part of the value created in order to deliver superior value propositions Traditional bottom line Self selection Claims cost reduction Service fees paid by the customer Bottom line with Telematics Discount and incentives to the costumer Value sharing Intermediary additional remuneration Risk reduction Partners contribution More accurate pricing Hardware Services Telematics costs SERVICES RISK SELECTION LOSS CONTROL BEHAVIORAL CHANGE RISK-BASED PRICING
  • 30. 30 RISK SELECTION: • Low-risk customer acquisition due to the storytelling of the IoT insurance product • Improved quality of underwriting process based on sensors data (including constant insights on exposure) • Increased underwriting process efficiency RISK-BASED PRICING • More accurate rating: based on measured "quantity" and "level" of risk exposure • Value propositions more attractive to the customers BEHAVIORAL CHANGE • Indirect impact on risk level through: -positive behavior reinforcement (including gamification) -culture creation • Loyalty systems based on detected behaviors (retention of low risk clients) LOSS CONTROL • Usage of the device information in order to anticipate claim management and improve reimbursement valuation • Initiatives acting directly in real-time on single situations to: -mitigate risks before damages occur -contain damages • LAE reductions • More accurate reserving Value Creation Levers Telematics data can have a extraordinary impact on the way you assess, manage and transfer risks SERVICES… • …based on sensor data to deliver enlarged value propositions for the clients orchestrating an ecosystem of partners • …concerning information about insurance coverage and insured risks
  • 31. 31 I’m supporting this evolution through the Observatory Objectives Scouting and rationalizing qualitative/quantitative knowledge on Insurance IoT Sharing a critical point of view of key trends and spreading innovation culture Encouraging members to discuss experiences and exchange ideas about innovation The scope Any insurance solution based on sensors for collecting data on the state of an insured risk and telematics for remote transmission and management of the data collected Health and life Industrial risks and workers’ comp Auto… Home and commercial property
  • 32. 32 I’m extremely proud to serve these Prestigious Organizations with the North American and European IoT Insurance Observatories To join the Observatory feel free to write to matteo.carbone@iotinsobs.com