PTOLEMUS presentation at the conference from Argus de L'assurance in Paris on 18th October. It presents the market size and evolution of usage-based insurance in Europe and evaluate the major changes in the telematics business

1. PTOLEMUS Consulting Group
L’assurance auto
connectée en Europe
Argus de l’Assurance - Paris -18 octobre 2016
PTOLEMUS intellectual property
Conférence Assurance Auto Connectée

2. PTOLEMUS
PTOLEMUS in a nutshell
The consulting & research firm for the connected world
2
Strategy
definition
Investment
assistance
Innovation
management
Business
development
Consulting services
Procurement
strategy
Deployment Usage-based charging
Connected insurance, driving behaviour monitoring &
analytics, 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
Fields of expertise
Car infotainment & navigation
Connected services (traffic information, fuel prices, speed
cameras, parking, POIs), maps, navigation
Research services

3. PTOLEMUS
PTOLEMUS in a nutshell
Clients across the mobility ecosystem
3
Applications providers
Analytics providers
ITS operators, regulators & fleets
Insurers, aggregators & assistance providers
Device/locationsuppliers
Automotive manufacturers & suppliers Mobile telecom operators
Banks & private equity investors
2012 Directors’ report
(translation from the Italian original
which remains the definitive version)
Financial Statements of the Company and the Group at 31 December 2012
27 March 2013
OBD2 Bluetooth Dongle basic compatible car models
Telematics solution providers

4. PTOLEMUS 3
• 1,100 pages of analysis using:
- 286 interviews in 28 countries
- 5 years of research performed by
6 consultants in 4 countries
- Insights from 30 consulting
projects
- 350+ figures (charts, tables, etc.)
• 42 case studies including Allianz,
AllState, Carrot Insurance, Vodafone
Auto, Ingenie, OnStar- Progressive,
Discovery Insure, Liberty Mutual,
Octo Telematics, Renault-Amaguiz,
State Farm, Unipol, Zurich
• A handbook of 60 suppliers'
solutions including our own
evaluation and rankings of
TSPs, TTPs and analytics
providers
• 30 insurance markets profiled
• 2020 & 2030 market forecasts
- Canada, US, Latin America,
Europe, Russia, South Africa,
India, Chinese and Japan
- Personal line / commercial line
- Aftermarket / OEM
• Analyses of the disruptive
forces at play
- ADAS and autonomous vehicles
- eCall & ERA Glonass mandates
- The rise of smartphone apps
- Big Data & analytics
•Targeted recommendations to
insurers, regulators, TSP,
OEMs and operators
* A free 125-page abstract can be downloaded from www.ptolemus.com
The analysis presented today comes from this report…
The reference report on
the subject, quoted by
The Economist, the
Financial Times and the
Wall Street Journal
Sources

5. PTOLEMUS 3
• Dissected the pricing and data
management policies of the
27 largest UBI programmes:
Admiral, Allianz, Allstate,
American Family, AXA,
Generali, Desjardins, Direct
Line Group, Discovery Insure,
Groupama, Ingenie, Insure the
Box (Aioi Nissay Dowa), Intact
Insurance, Intesa Sanpaolo
Assicura, Liberty Mutual,
Mapfre, Metromile, National
General, Nationwide,
Progressive, Reale Mutua, Sara
Assicurazioni, State Farm, The
Hartford, UnipolSai, Uniqa and
Zurich
• Conducted 40 in-depth
interviews with Telematics
Service Providers (TSPs),
analytics providers and
insurers
• Reviewed more than 150
academic papers
• Consulted and appraised the
solutions of 12 advanced
analytics suppliers active in
UBI, including Accenture,
Cambridge Mobile Telematics,
Cognizant, HERE, IBM, IMS,
Lexis-Nexis / Wunelli, Octo
Telematics, SAS, The Floow,
Verisk Analytics and Willis
Towers Watson
* A free abstract can be downloaded from www.ptolemus.com/analytics
… this new report…
Sources
The most comprehensive
analysis of the connected
insurance analytics market and
solutions

6. PTOLEMUS
… and our quarterly dashboard of the UBI market
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• 100-page barometer of the global
UBI industry
- Covers over 200 insurers, TSPs
and device providers
- Covers the US, Canada, France,
Germany, Italy, Spain and the
UK
- Now also Russia, China,
Benelux, Latam & rest of Asia
- Issued on a quarterly basis
- 250+ charts, tables & figures
•Leverages both public information
and primary research
- A large set of public
information collected from
conferences, desk research,
etc.
- Supplemented and validated
by primary research & data
(Interviews, supplier
questionnaires, own market
forecasts, etc.)
•Brings most important market news
•Estimates UBI volumes and sales
for all main players
-Insurance companies
-TSPs
-Technology providers
• Deciphers the key market trends
-UBI penetration
-Number of programmes
-Mix by business model (PAYD,
PHYD, TBYB, etc.)
-Market share of all main
insurers, TSPs and device
makers
-Technology mix (Black boxes,
OBD, apps, etc.)
-Business line mix
-Segment mix (Young drivers,
mature drivers, etc.)
-Channel mix aftermarket / OEM
The hard data you need to
define & adjust your strategy
Sources

7. PTOLEMUS
Trends
A maelstrom of trends will impact insurance companies
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Insurtech
Insurance telematics Sharing economy
Autonomous cars
Connected cars
Smartphonisation
Usage-based everything
Digitalisation
Online
Direct
Gamification
Big Data
Predictive analytics
AI
Machine learning
IoT

8. PTOLEMUS
Text
A maelstrom of trends will impact AXA
8
ESTIMATED IMPACT ON
AUTO INSURANCE
MARKET
TODAY
AI
Machine
learning Insurtech
Sharing economy
ADAS &
autonomous
vehicles
Connected cars
Usage-based
everything
Online
Direct Gamification
Big Data
Predictive
analytics
Insurance telematics
Smartphonisation
Digitalisation
IoT
TIME
Trends
…but not at the same time and with the same intensity
The waves - Impact of major trends on the auto insurance business

9. PTOLEMUSPTOLEMUS
Connected auto insurance: over 250 programmes globally
9
Towards usage-based everything
Source: PTOLEMUS quarterly UBI dashboard
Number of active UBI programmes worldwide by quarter since 2009

10. PTOLEMUS Source: PTOLEMUS quarterly UBI dashboard 10
UBI has reached all continents
Number of active UBI programmes by country
Towards usage-based everything

11. PTOLEMUS
Global market dashboard
Source: PTOLEMUS - Note: * Excluding trials ** Excluding Try-Before-You-Buy schemes 11
The global UBI market grew to 14.1 million policies in Q2
Q2 2016

12. PTOLEMUS 12
Italian market evolution
In Italy, telematics has become mainstream
Source: PTOLEMUS quarterly UBI market dashboard estimates
Q2 2016

13. PTOLEMUS 13
UK & Ireland market evolution
The UK market is now growing beyond the young driver niche
Q2 2016
Source: PTOLEMUS quarterly UBI market dashboard estimates

14. PTOLEMUS 14
German market evolution
The German market is starting to move too
Q2 2016
Source: PTOLEMUS quarterly UBI market dashboard estimates

15. PTOLEMUS 15
Factors of successes Insurers
1 Don’t be stopped by failure, try again Amaguiz, Direct Line, Progressive, Liberty Mutual
2 Test, test and… test Allstate, Progressive
3 Build a simple, attractive and customer-centric experience Insure the Box
4
Bring a solution that addresses the key actuarial
weaknesses of your market
Drivelikeagirl, Unipol
5 Do not copy, innovate Discovery, Genertel, Progressive
6 Collect less personal data and get more customers! Allianz France, Progressive
7 Don’t hide the box, make a benefit of it! Allianz Italy, Progressive, Reale Mutua
Understanding UBI successes
What are the best practices?
Source: PTOLEMUS analysis of more than 100 UBI programmes

16. PTOLEMUS 16
Factors of successes Insurers
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Heavily promote your telematics programme through
advertising once it is ready
Progressive
9
Make a nice business case for your internal / external physical
channels and convince them!
Intact, Progressive, Unipol
10 Be pragmatic, do not fall in love with your technology Allstate, Desjardins, Discovery
11 Conduct a structured technology sourcing process Generali, Progressive
12 Bring your top management onboard for the long haul Progressive, Unipol
13 Invest to understand & control the technology and the analytics Allstate, AXA, Generali, Progressive
14 Launch different models and see what sticks! Allianz, AXA, Generali, Liberty Mutual
Understanding UBI successes
What are the best practices?
Source: PTOLEMUS analysis of more than 100 UBI programmes

17. PTOLEMUS Source: PTOLEMUS analysis - Note: * Evaluation criteria detailed in the Connected Insurance Analytics Study
In the future, making sense of data will become critical
17
Sophistication of analytics*
Very highVery low
Volume
of data
collected
Very low
Very high
BIG DATANALYTICS
Towards usage-based everything

18. PTOLEMUS Source: PTOLEMUS UBI market forecasts
We expect UBI to reach 100 million policies by 2020 and even
600 million by 2030!
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Towards usage-based everything

19. PTOLEMUS
Conclusion
Insurers should anticipate the highest upcoming waves
Merci !
• Most insurers are confused by the
multiplicity of waves and… tend to doubt all
of them
• Once insurers will have handled
smartphonisation then the major waves to
catch will be Usage-based Everything,
Connected Mobility and Autonomous
• Waiting is the best way to be hit by the wave
• The auto insurance business will be fully
redefined and may not exist as such in 15
years
• The new paradigm still needs to be
redefined
19

20. 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 - Hanover - London
Milan - New York - Moscow - Paris
contact@ptolemus.com
www.ptolemus.com
@PTOLEMUS
Frederic Bruneteau, Managing Director
fbruneteau@ptolemus.com
+32 4 87 96 19 02