Digital business

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Bachelor of Science in Human Resource Management
Managing Digital Business, Strategy and Operations (MIS3008L)
DEVELOPING A DIGITAL BUSINESS CONCEPT OF
USAGE BASED INSURANCE
Submitted by:
E.Hemal Weerasingha
K.C. Nandika Perera
A. Bernadeth Perera
G. A. K. Vidurangi Perera
M. Rangika Vidanagamage
Lecturer: Dr. Brian Dempsey
Submission Date: 16th December 2017

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Table of Contents
List of Figures and Appendixes..................................................................................................iii
1. Description of Digital Business Concept.............................................................................. 1
1.1 Introduction to Business plan....................................................................................... 1
1.2 What is UBI and how it operates ....................................................................................... 1
1.2.1 What is telematics?......................................................................................................1
1.2.2 What type of information that telematics devices collect............................................. 1
1.2.3 Why do we use cloud? .................................................................................................2
1.2.4 Installing process of telematics system.........................................................................2
1.3 How customer view their account and progress.................................................................2
1.4 How UBI benefit to company............................................................................................. 2
2. Analysis of the competitive environment for Smart Auto Insurance....................................2
3. Analysis of your organizations capabilities to enter the market and the threats that exist...3
4. Digital marketing plan.........................................................................................................5
4.1 Value Preposition of UBI...................................................................................................5
4.2 Our target audience......................................................................................................5
4.2.1Methods of reaching our target audience…..................................................................6
5. Description of how the business will make money (revenue streams) ......................................7
6. Description of the structure of Insurance on-line presence (web site structure)....................... 8
7. A 5 year revenue projection....................................................................................................9
References................................................................................................................................. 10
Appendix .................................................................................................................................. 12
Group reflection page ............................................................................................................... 24

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List of Figures and Appendixes
Figure 1 : SWOT Analysis Matrix .................................................................................................3
Figure 2 – Web site layout............................................................................................................. 8
Figure 3- Telematics device configuration .................................................................................... 12
Figure 4 - How telematics system works....................................................................................... 13
Figure 5- Types of information collected through Telematics devices............................................. 14
Figure 6 – web site structure....................................................................................................... 17
Figure 7 –Sub categories of web structure.................................................................................... 18
Appendix 1 – Telematics device configuration ............................................................................. 12
Appendix 2 -How telematics system works .................................................................................. 13
Appendix 3 – Types of information collected through Telematics devices ...................................... 14
Appendix 4- Marketing strategies expect to launch for buildup strong customer base around Smart
Auto Insurance (UBI) solution..................................................................................................... 15
Appendix 5 -Explanation of web site structure.............................................................................. 16
Appendix 6- Finance Workings and Basic Assumptions ................................................................ 19
Appendix 7 -UBI Revenue sheet................................................................................................. 22

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1. Description of Digital Business Concept
1.1 Introduction to Business plan
We are one of Sri Lankan leading insurance company and the one of the world largest insurance
company which has been mainly operating focused on Asia-pacific Region.in Sri Lanka, we
currently operate only on life insurance sector. For the first time in Sri Lanka we have planned
to launch a motor insurance and which would be a brand new experience to Sri Lankan as well
as for us because this is not a another typical motor insurance Scheme.in this document we
hope to explain what is our business plan and how it works. Insurance mechanism of some
aspect exist the same as they(Assessing risk, Collecting Premiums etc.) were before and they
only had slight changes how they operates and their benefits but With the technology
development and enhancement everything has started to change rapidly. By today many
industries (Service, Products) have digitalized and we have identified that insurers could make
a multibillion dollar opportunity with the use of digital technologies. Our new business plan is
to introduce a new motor insurance Scheme and through that we hope to gain the competitive
advantage of first mover. Our insurance scheme is a usage base insurance scheme which is a
brand new concept for insurance industries operates in Sri Lanka.
1.2 What is UBI and how it operates
UBI stands for user base insurance systems. This concept is entirely different from traditional
insurance methods. Traditional insurance policies define considering value of vehicle and they
do not consider the driving skills. That is why we are planning to implement UBI. In this
Scenario our customers have to pay only for their personal driving behaviors. This means
insurance has become more personalized. For implementing we need to use telematics systems
and cloud services for the purpose of gathering data. Our Business model is B2C.
1.2.1 What is telematics?
Vehicle telematics is the technology of sending, receiving and storing information about
vehicle using. This technology based on machine-to machine technology (M2M).there is
various telematics devices now in the market under different prices under different brand
names. They use wireless GSM technology that we use today in internet Dongles (see appendix
1 &2).
1.2.2 What type of information that telematics devices collect
We use Vodafone telematics system and cloud database service to analyze data. Following data
is collected by telematics devices.
 Speed  Time  GPS
 Break  Vehicle faults  Crash data
 Distance  Theft alerts  Idle time
 Oil and battery usage  Weather condition
(For more detail refer the appendix 3)We will need these data to measure the customers’
premium more accurately. These data is directly sent to the cloud, store data, analyze data and
after that information will be sent to our customer relationship management systems by the

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cloud service. Then and there we calculate the premiums and provide driving tips directly to
our customers’ mobile phone with the app we have provide them.
1.2.3 Why do we use cloud?
It is too cost to design a new data base system and take so much time. We need extra time to
implement them and to check whether they are working with the deployed telematics device
and our CRM system. Regarding these thing it is cheaper for us to buy the service and devices
from one service provider. The most important thing is accuracy and data protection (loss and
hack).considering cloud we have data protection. Cloud systems never shut down so data
accuracy is relatively high.
1.2.4 Installing process of telematics system
We do not force to install telematics system to our existing customers but if they change
voluntarily we would offer them a bonus and for the first time customers we would offer 20%
discount up to a certain period of time. In installing process we need technical assistant for that
our plan is simple. We provide customers brake down assistant beside the insurance. If they
want brake down assistant they have to add that feature to their premium as an extra facility.
When they add this extra facility they receive extra mobile app for free which diagnose the
problem of car and they can contact closest mechanic. System automatically sends a message
to the mechanic mentioning the error. For recruiting mechanics we provide open invitation for
skilled mechanics to register with us. We provide them a free training how to install telematics
system. To keep their registration they have to pay a small registration fee for a year. That
method will also generate revenue for us. Customers can register online or they can come to
the closest branch or they can contact customer service as well.
1.3 How customer view their account and progress
If a customer registers online or by contact they will have to install telematics system within
14 day and after that time policy will be canceled. Telematics system will be installed at any
place at a time convenient to customer. For installing telematics a fee will be not charged. After
installing telematics system customer can view their profile using the app that can be
downloaded from our system and the information generates from telematics can be also viewed
by logging into customers personalized dashboard. Good scores that customers earn will be
rewarded them for every three months and they will receive a discount on renewal. The better
score, the bigger their reward. This feature would motivate new customers to buy our policy.
If an accident occur customer can call for help.it would be not necessary because our system
automatically detect that and we call the customer if they need medical assistant that would be
supplied immediately. Customer can take pictures of the scene and they can upload and they
can claim online.as an added feature they can ask for an extra vehicle to pick them up.
1.4 How UBI benefit to company
The huge problem for motor insurance companies are claims but through implementing this
system it mitigates the rate of claims because drivers tend to earn rewards and try to achieve
discounts so day by day their driving behavior become better. This will save money of company
and it will help to mitigate the accident on roads somehow. That would also be a benefit to the
society and social responsibility.

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2. Analysis of the competitive environment for Smart Auto Insurance
As a leading insurance company in Sri Lanka we enter to new business category by introducing
smart auto insurance. This Usage based IOT powered new insurance concept firstly introduce
to Sri Lanka by the company. So in here try to analyze competitive environment of the business
using porters five forces model.
Rivalry among Competitors
With the help of fully digital automobile insurance with IOT and telematics based technology
help to compete in the market. Because in Sri Lanka usage-based insurance (UBI) system was
firstly introduced by the Company. Also traditional automobile insurance agencies like Sri
Lanka insurance, Janasakthi, ceylinco, etc. are competitors for traditional automobile
insurance. But they did not enter for UBI yet and company take the first movers advantage
mostly. Due to the concept “Pay how you drive” the premium cost is reduced by 50%
comparing to normal auto insurance. Not only can that app feedback be used to modify driver
behaviors to reduce risk level, benefiting both carrier and driver as the policyholder. Due to
these factors rivalry among competitors become high considering this new business plan.
Threat of Substitutes
In here less substitutes for smart Insurance in Sri Lanka. Because this is cutting edge technology
mixed with IOT and introduce this smart auto insurance. This come with alternative (and
significantly less expensive) non-traditional and emerging distribution channels with new
pricing models (usage based).But recently in India and Malaysia introduced this technology by
Bajaj and Axa companies, So Bajaj automobile sell in Sri Lanka and we can estimate in future
they will come and start business, not only that current general insurance leaders also came to
field after the popularity and customer base in future. So currently having less impact from
substitutes but in future (2025) can get more threat from substitute companies and new
development of IOT devices, apps, Google’s self-drive vehicles.
Bargaining Power of Suppliers
In here companies major supplier is UK based Vodafone Company. They provide cloud
services as well as server and other technical and IOT based facilities to company smart auto
insurance. Vodafone selects as major supplier due to, within one company can get all services,
less cost and less conflicts with software, installation of equipment and problems among
communication with system and equipment’s. So in here many suppliers as Mahindra, Meta
system and many companies know produce UBI equipment’s in the world. So considering this
new business bargaining power of supplier is in moderate level. Company wish to update
software by every 06 months’ time and add additional features to existing customers.
Threat of New Entrants
Today many industries become digital and in future try to expand horizontally and vertically
of fully digital business in industries like automobile and many industries. Considering smart
insurance concept uses telematics and IOT helps for development of this insurance model. But
Tesla has is far superior to what most insurers have in telematics, mechanical and driving data
which used for these purposes. In Sri Lankan market Telsa is premium value vehicle so this
treat become less. But in Asian region in Malaysia and India currently operates in this model.
But current Sri Lankan operators’ like Sri Lanka insurance, Union Assurance, etc. not reach
this segment. But due to advantages like less premium, high benefits of this UBI concept more
vehicle users gather to AIA’s this concept. So in future their competition arises due they add

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in to this model. But it take more initial investments and then treat of new entrant’s power
become low. Within next five years self-driving tech-enabled smart cars of Google, Telsa, etc.
came and reduce impacts will change the nature of risk and liabilities. Company can claim less
amount to customers by introducing easy to fix technically attach gajets and functioning
insurance.
Bargaining Power of Buyers
This UBI based automobile insurance is introduced in first time in Sri Lanka and then
bargaining power of buyers become very low or neutral. Because they are the first movers in
this field in Sri Lanka. So company gain competitive advantage from it and become market
leader in smart drive insurance field.
3. Analysis of your organizations capabilities to enter the market and the threats that
exist
As a leading insurance company in Sri Lanka, we have potential organizational capabilities
which can be used to compete in the market and survive for a long run. Not only the capabilities
but also the threats can have a huge impact on the business and therefore a good analysis must
be needed. Organizational capabilities and threats can have either a positive or negative impact
on the overall business and clearly identify those factors and manage the impact is essential in
today’s modern business environment. SWOT analysis will help to analyze the positive and
negative factors in our business.
Positive Factors Negative Factors
Internal Factors Strengths Weaknesses
External Factors Opportunities Threats
Figure 1 : SWOT Analysis Matrix
Strengths
Organizational strengths come from the internal environment of our business. First we need to
identify what are our core strengths we have in our organization. Strengths means the
advantages that we have within the existing business, what we can do better than other rivals,
and what we have as unique in our business. In simply, strengths can be described as the
internal attributes and resources that support to achieve the overall business objectives.
 Highly experienced owner operate
As we are already established leading insurance company, we have the capability and ability
to introduce and implement a new motor insurance (UBI) policy to our customers. Our
expertise, qualities, experiences, values and many more unique characteristics will strengthen
us in our new business.
 Limited start up risk
Introducing the User Based Insurance (UBI) policy may incur a cost but there is no more risk
of entering in to the insurance industry because we are already established and leading
insurance company in Sri Lanka. So the startup risk is very low.
 Highly visible website
When we are expanding our business in to the digital stage, we always give priority to update
and maintain our official website in a user friendly manner and make sure to visible it for
everyone. The co-operate web site play a major role in every business because it is a key
success factor or the strength in the online business.

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Opportunities
Opportunities derives from the external environmental and those external factors that can be
utilize or capitalize on its advantages are known as opportunities.
 Product innovation
User Based Insurance (UBI) policy for automobiles in Sri Lanka is an innovative insurance
solution for Sri Lankan customers. Sri Lankan customers don’t have any experience of an
insurance policy that determines monthly premium based on their personal driving behaviors.
This is a totally new concept to the Sri Lankan insurance market and this is a great opportunity
to expand our business.
 High barriers to entry
Though it looks like a threat to the business, it is an advantage to our already established
insurance business because high cost and risks associated with the insurance field will
discourage new rivals enters in to the market. Limited number of rivals or competitors will
give us a good opportunity to be the leading insurance company in the market.
Threats
Threats are the external factors that could affect the success of the overall business and it
includes various types of obstacles and barriers which may lead to fail the success of the
ultimate business.
 Rapidly changing modern technology
UBI policy is heavily depending on the modern technology because sending, receiving, and
storing data of vehicle usage is done through the modern technology. Adapting to the latest
cutting edge technology will incur a cost and as well as risks to our business and this might be
a future threat.
 Changes in government rules and regulations of insurance policies.
Insurance industry is an industry that strictly regulates by the government an ongoing basis.
Changes in their rule and regulations can badly affect our business especially when introducing
a new policy to the market.
Weaknesses
Weaknesses are the internal factors that directly influence the ultimate business and those are
the factors that need to be improving upon in order to achieve the business objectives. On the
other hand weaknesses are the internal attributes and resources that always pull down our
business success.
 Lack of marketing expertise in UBI
UBI policy is a new automobile insurance policy which we are going to introduce to the Sri
Lankan market for the first time and because of that we don’t have much experience with this
type of insurance policy.
 Maintaining of data accuracy
The concept of User Based Insurance (UBI) policy is totally dependent on the data received by
us, to price the monthly insurance premium. Managing and storing data in an accurate manner
to take when it is needed is crucial for the survival and continuation of the business. Fail to do
so will make a weak point in our business.

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4. Digital marketing plan
In a highly competitive present market, having a proper and successful digital marketing plan
is important. Engaging customers with the right content at the right time on right channel is
really important. So having an effective digital marketing strategy is a must. Publications using
digital media is successful since it has ability of conquering large range of the young people
effectively with the right message content on right time.
4.1 Value Preposition of UBI
Normally a customer intend to buy a motor insurance scheme for the cheapest price but most
of the customers expect to buy more quality, safe and value added insurance scheme with what
they pay. With UBI the insurance provider and the customer connects with a continuous basis
and provides accurate risk profiles using driving behavior insights. It provides the customer
with a companion mobile app and website which gives daily feedback on their driving skills
and behaviors’. Through that it increases operational efficiency, customer engagement, and
provide range of value added services or prepositions like,
 Rewards and discounts on safe driving behaviors
These are basically given based on Speed, mileage and harsh driving.
 Vehicle safety
Vehicle security and theft recovery.
 Understandable motor insurance contract which basically gives the option of ‘pay for what
you see and on your behavior’. Rating is done based on actual driving behavior.
 Guided driving
Advices on fuel saving techniques are proved through the app and website.
 Location based services
This helps in viewing real time vehicle location and road assistance.
 Safe driving campaigns and Proactive driver behavior feedback
This will improve driving behaviors and styles and reduce accident risk. UBI also provides
automatic accident alerts and assistance (to ensure customer gets medical treatment
immediately if needed).
 Vehicle fault notification
With the data collecting, the app displays the routine diagnostics checks of the vehicle and
current status of the vehicle.
 E call ( Emergency / Panic button) and B call (breakdown)
Customers have the ability of getting a cheaper insurance scheme by reducing the rates of the
scheme with improved driving skills and behaviors.
 Controlled claims
4.2 Our target audience...
The main target audience of UBI is safest drivers or the low risk drivers. They will be the most
attractive and retaining customers of the UBI market. By providing special discounts and

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offers, attracting and retaining the low risk drivers and improving their driving behaviors’
furthermore is done. If we consider the target market gender wise, this insurance scheme will
be more popular among female drivers since most of them like to drive carefully under
guidance. Beyond the safest drivers, considering about day today activities, teen drivers or
younger generation drivers (generation y) and aging drivers (Elder generation) are include in
the target group. UBI is really valuable for the high risk drivers where they can improve their
driving skills and behaviors with the continuous guidance given by the insurance company with
the mobile app and website.
In houses where there are 2 or 3 vehicles but usage of the vehicle is low and in houses where
there are retired people who do not often use their vehicle, having UBI can reduce their cost of
paying with their limited usage even though they are safe drivers or not. There are drivers who
met with accidents even though they are safest drivers. For drivers like them, having UBI is
really valuable since their actual driving behaviors are captured and UBI allows them to prove
that they are safe drivers and lower their rates.
4.2.1Methods of reaching our target audience…
Customers always intent to buy services which provides the highest number of value
propositions, discounts, rewards to them with the amount they pay. Aiming the target audience,
to communicate this UBI approach to the market, following methods and Targeted event
promotion campaigns will be used.
 Website Publication
Customers attract more towards viewing a website if the site consist of useful details of what
they expect. For this website will be having more attractive features. To publish the website
link with existing and new customers, emails, and mobile and twitter messages, Facebook
promotions with the Facebook page will be done. So then the site visitors will be increased and
more people will get aware with what UBI actually does. With the website, the brand will
anchor online.
 Social media
Among the online services, You tube, Twitter, Facebook, Instagram, Google+, LinkedIn
publication will be done with stories (it’s a temporary sequence of photos, images and videos
shared by users and only remain for 24hrs after publication), images and videos to
communicate the content of UBI to the target audience.
 Advertising on Channels
Using attractive commercials on TV, You tube, KM Player etc. This will reach large audience
and help in generating brand awareness with UBI
 Using print media
Publishing through newspaper articles, leaflets and magazines. This is an effective way of
moving the existing customers towards this insurance scheme by updating them when they visit
the company and through letters.
 Personnel selling with sales people
This will build and enhance relationship between the company and the customer.
Communicating about UBI approach to the customer directly is much effective since it is
something new to this country and it gives all the needed details to customer and solve their
problems too.

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5. Description of how the business will make money (revenue streams)
This insurance system is totally newest business concept for the Sri Lankan motor insurance
industry. This UBI (user based insurance system) system is entirely different from traditional
insurance methods in the Sri Lankan insurance sector. Most of the motor insurance companies
consider the age of the vehicle and the current market value to decide the premium amount per
annum.This information helps them to decide how the vehicle will perform, how often it will
require maintenance, how likely it is for the vehicle to be in an accident etc. But through this
new concept customer can pay for their usage nature. The commercial benefits to our insurance
company include better alignment of insurance costs to actual risk. We take initial capital from
our mother company to start up this business in the initial stage. This insurance company
planned to make money most of its money from taking premium and investing them in
profitable way. Basically this company expects to collects its premiums from all clients and
invests that money in extremely safe investments such as government bonds and also keeps
capital on hand to pay claims made by our clients. And also the company expected to make
money in the following two ways:
Underwriting Income: This is the difference in the amount of money collected from the
people as premiums and the money paid when a claim is filed in the hour of need. Investment
Income: What you pay as a premium is invested further so that it accrues interest over time
and that is further used to cover the various expenses of the insurer (Feedough, 2017). Our
company expect to establish a well-diversified portfolio and invest in both low-risk fixed-
income securities and high-risk, high-return equity markets (Feedough, 2017). On the other
hand, company keeps track of the claim ratio or the loss ratio in each and every year. This the
ratio of that total money paid as claims and other adjustment expenses to the total amount
earned by premiums. Based on this ratio analysis, the premiums for future years can be
calculated. This company expects to get the all expenses into account, including the managing
and administration costs and commissions and then keeps a margin around 2-5% at the end of
the year, the actual payouts are compared with the original estimations and the premiums are
future cases are adjusted accordingly. (Feedough, 2017). Other revenue generating method is
engaging marketing and promotional actives. If we have to keep higher customer base around
our business through that our revenue will be increased. Unless we cannot maintain good
customer base, totally we will be fail from the market. Therefore we planned to several
strategies to retain the existing customers and attract the new more customers from the external
business environment through that as a business we can earn revenue. We hope to use some
marketing strategies through that expect to buildup strong customer base around our smart UBI
solution, (refer appendix 4 for strategies). Beside these things we can earn income through
introducing various add on facilities like Vehicle for vehicle (when vehicle is collided), Pick
up services, providing special vehicles for functions. Driver recruitments, faults identifying
facility and garage services, Road side assistance, flood security, Fire, Theft, etc.
Company purchase telematics equipment from UK Vodafone company and its bulk purchase
price becomes 70$.Before customer get smart auto insurance he/she go to smart auto insurance
office and register by providing personal details and identity card. At the registration customer
should pay 150$ fixed payment per year. In here company have given 14 days trial period for
customers without any payment. In the registration customer mentioned annually or monthly
usage distance on vechicle. According to customers monthly usage, after the completion of
month period minimum amount reduced from the fixed payment. If customer exceed the
monthly allocated distance then after completion month he/she have to pay remain amount. If
customer dislike to extending insurance policy then company not refund the 150$ to customer.

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6. Description of the structure of Insurance on-line presence (web site structure)
Figure 2 – Web site layout
Referappendix 5formore detailsoncompanywebsite structure.
Primary menu
Landingpage
Englis
h
Sinhala Tamil
Home page
6 sub pages
3 sub pages
3 sub pages
2 sub pages
3 Sub pages
3 Sub pages
Investment
Protection
Retirement
Student
scholarship
Health
Group life
Motor insurance
Motorcycle
insurance
Three Wheeler
insurance
Smart drive Commercial
Vehicle
insurance
Car Insurance
Private smart
drive
Fleet smart
drive
Secondarymenu
About
Careers
FAQs,
Pay Premium
Contact Us
Employee login
3 sub pages
4 sub pages
4 sub pages

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7. A 5 year revenue projection
1st year $
Office equipment 552900
Telematics 420000
Web server 13 020
App 1300
Web page 3900
Vehicle 162700
Maintenance &
Fuel
132270
General expense 125500
salary 150900
claim 100000
Total cost 1662490
2nd
year
Office equipment 130 00
Telematics 490 000
Webserver 13020
App -
Webpage -
Vehicle 32580
Maintenancey &Fuel 32550
salary 237000
Mobile phone 65000
depreciation 650800
claim 20000
total 1566980
3nd
year $
Office
equipment
-
Telematics 360 000
Webserver 13020
App -
Webpage -
Vehicle 16270
Maintenance
& Fuel
40000
General
expense
716100
salary 566000
Mobile phone -
depreciation 488100
building 84630
claim 5000
Total cost 228912
4nd year $
Telematics 700000
Web server 13020
App -
Web page -
Vehicle 22778
Maintencey & Fuel 80000
salary 566000
Mobile phone 37050
depreciation 65290
building -
claim 2000
Total cost 1630756
5th year $
Telematics 840000
Web server 13020
App -
Web page -
Vehicle 32540
Maintencey & Fuel 90000
salary 566000
Mobile phone 65000
depreciation 80500
building -
claim 2000
Total cost 1919600
Year Total Revenue $
1 1,695,800
2 1,934,500
3 2,273,500
4 2,796,500
5 3,390,500
Gross profit 1st year = (1,695,800$-1,662,490$) = 33,310$
Gross profit 2st year = (1,934,500$ -1566980$) = 367520$
Gross profit 3st year = (2,273,500$ - 228912$) =15620$
Gross profit 4st year= (2,796,500$ -1630756$) = 1165744$
Gross profit 5st year = (3,390,500$ -1919600$) = 1470900$
Gross profit = (Total Revenue/Income - Total cost)
For more detail on revenue calculations refer appendix 6 and 7
for revenue calculations

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 Guy, I. (2017). UBI: Finding customer value to drive success. [Blog] Dxc.technology.
Available at: https://blogs.dxc.technology/2015/07/21/ubi-finding-customer-value-to-
drive-success/ [Accessed 12 Dec. 2017].
 Hubio (2016). End-to-end Usage-Based Insurance (UBI) | Hubio. [video] Available at:
https://www.youtube.com/watch?v=b0geZ5Up3NQ [Accessed 5 Dec. 2017].
 Husnjak, Sinisa & Perakovic, Dragan & Forenbacher, Ivan & Mumdziev, Marijan.
(2015). Telematics System in Usage Based Motor Insurance. Procedia Engineering. 100.
816-825. 10.1016/j.proeng.2015.01.436[Accessed 3 Dec. 2017].

11
 lex Drive (2017). The New Way to Car. [video] Available at:
https://www.youtube.com/channel/UCDtn-IChv8xhcnPUFRLNugw [Accessed 3 Dec.
2017].
 Morethan.com. (2017). Cheap car, home, pet, life, travel and landlord insurance quotes.
[online] Available at: https://www.morethan.com/ [Accessed 7 Dec. 2017].
 MPOWERING THE DIGITAL INSURER. (2017). [ebook] USA: Microsoft.com, pp.2-
23. Available at: http://az370354.vo.msecnd.net/whitepapers/Digital%20Insurer%20-
%20Perspectives%20-%20Microsoft%20Whitepaper.pdf [Accessed 7 Dec. 2017].
 Oak, C., (2003) SWOT Analysis [online] Available at: http://www.insurancejournal.com
[Accessed 8 Dec 2017].
 Oracle Internet of Things (2016). Oracle Usage-Based Insurance – Internet of Things
(IoT). [video] Available at: https://www.youtube.com/watch?v=6spdxpwZkQo [Accessed
3 Dec. 2017].
 ParatusComms (2009). AXAdent: The motor claims iPhone application from AXA.
[video] Available at: https://www.youtube.com/watch?v=mx7wfHzrCuk [Accessed 3
Dec. 2017].
 Soleymanian, M., Weinberg, C. and Zhu, T. (2016). The Value of Usage-Based Insurance
beyond Better Targeting: Better Driving. Sauder School of Business, University of British
Columbia.
 Team, e. (2017). Bridging the student success gap with retention strategies and technology.
[online] Engage2Serve. Available at: http://www.engage2serve.com/blog/bridging-
student-success-gap-retention-strategies-technology/ [Accessed 14 Dec. 2017].
 Tech Mahindra (2014). Presenting Tech Mahindra's Telematics driven smart and cost
efficient solution for both Personal and Commercial Auto Insurance players across the
globe.. [video].
 Telematics.vodafone.com. (2017). Home. [online] Available at:
http://telematics.vodafone.com/ [Accessed 5 Dec. 2017].
 THE INSURANCE INDUSTRY AS A DIGITAL BUSINESS. (2016). [ebook] NTT
INNOVATION INSTITUTE INC., pp.1-79. Available at: http://www.ntti3.com/wp-
content/uploads/TheInsuranceIndustryasaDigitalBusinessV2.1.pdf [Accessed 3 Dec.
2017].
 UBI Banca Media Relations (2017). Facebook confirms the success of UBI Banca’s
campaigns on Instagram. Videos to advertise the Hybrid credit card improve number of
accesses to online contents and recall.. [online] Available at:
https://www.ubibanca.it/contenuti/file/UBI%20Banca_press_release_instagram_ing.pdf
[Accessed 12 Dec. 2017].

12
Appendix
Appendix 1 – Telematics device configuration
Figure 3- Telematics device configuration

13
Appendix 2 -How telematics system works
Figure 4 - How telematics system works

14
Appendix 3 – Types of information collected through Telematics devices
Figure 5- Types of information collected through Telematics devices

15
Appendix 4- Marketing strategies expect to launch for buildup strong customer base
around Smart Auto Insurance (UBI) solution
1. Use mass media to advertising our business concept to the customers.
Social media such as face book, commercial web sites etc. the page visitors give and
opportunity to subscribe our web page likewise we planned to do online marketing campaign.
2. Establish large banner boards which were highlighted our business benefits in main cities
of the country.
3. Provide name boards to the automobile service centers in Island wild.
4. Expect to introduce 24 hours smart claim paying system via ATM machines.
Through those customers have the opportunity claim a considerable amount when accident is
occurred suddenly take photographs of their vehicle and within 24 hours they can receive
money from their ATM cards.
5. Arrange motor clinic in main cities.
Through that people are open invited to bring their vehicles to our clinic and check the inner
trouble from our motor mechanics and expertise and free valuation of the vehicle at that place.
We can collect some critical information about the people who visit our clinic. This strategy
may reveal current insurance premium of the customers and their details. After that we can
prepare future potential customer’s data base and next time we directly contact that customers
and introduce our insurance scheme to them.
6. Expect to introduce critical illness cover to the customers who bought our insurance policy.
This strategy is expect to doing under the conditions apply.as an example suppose that a
customer purchased our insurance policy. He/she should provide medical report from the
doctor which ensure at the time he/she bought the insurance policy they were in good health
conditions without any critical illness. We hope to claim large range around 30 critical illness
include cancers likewise. And this offer will be activated after three month of the purchasing
our insurance plan.
7. Expect to introduce no claim protection facilities to our customers.
We expect to pay no claim bonus up to 50% of premium if customer be with us continuously
up to five years. We add rider benefit to customers initially and next time renewal customer
can deduct from their payment in considerable rate than previous year.
8. Getting closer relationships with the leasing companies, other motor vehicles distributors
and do business with them profitable manner.
We hope to work very closely with leasing companies and motor vehicles distributors. If they
can recommend or if they sale our insurance with their vehicle we would provide them a fair
commission regarding the value of vehicle.
We hope to getting agreement with few leasing companies like LB finance, central finance etc.
We expect to offer 10% discount for our new customers and 20% discount for existing
customers too. These strategies help us to attract more customers around the business.it will be
directly impact to increases the revenue of the company.

16
Appendix 5 -Explanation of web site structure
Web site structure
As we are an already existing company we do have a website for Sri Lanka its own but up to
now we didn’t have provided the facility to pay premiums online for Sri Lanka. With the launch
of new motor insurance division we enable our customers to pay their premium online and to
register online with our insurance.so with the launch of new Automobile division we made
some changes to our website. In this section we will explain our web structure. When customer
typed our web address in URL it will redirect to our web landing page. On this landing page
customers can select their preference language from three main languages. They are Sinhala,
Tamil and English. It’s no matter what language customer select because content shown on the
web pages exactly same for the three languages. After selecting the language they will redirect
to home page. Our web page is mobile friendly.
Content of homepage
It is the main page and it is a full width page. Not box shaped. If we explain the layout of main
page it would be like this. First section is heading. There we have full width image slider
(banners). There we put images of promotions, new services and products etc. our main menu
is a drop down menu (hamburger menu).This menu comprises of our products and services.
We have a secondary full width menu at the top of page. This secondary menu will be like this.
About, careers, FAQs, Pay Premium, Contact Us, Employee login. When the motor insurance
link clicked Motor insurance page opens. This page has a side drop down menu comprises of
insurance types and on the same page there are links to the different motor insurance types.
Motor insurance types would be like this. Car Insurance, Motorcycle insurance, Three Wheeler
insurance, Commercial Vehicle insurance, smart drive. Under smart drive customers have two
links. 1. Private smart drive 2. Fleet smart drive. Private smart drive is for Private Vehicle.
Fleet smart drive is for institutes that have more vehicles. When a customer registers for fleet
smart drive, they will receive many other facilities like tracking vehicle applications for owners
etc. Using this web site employee could learn very fast. They have chance for that. They can
log into employee learning page using secondary menu not only that employee can see their
position of the organization and employee details using employee logging. Customers also can
log to the customers page using secondary menu. When they login they can view their status
of insurance, they can view about their claims and many other details. Customers also can pay
their premiums online. When they pay online they would be granted special discounts. When
they use smart drive they quote online and buy insurance policy online. When they buy online
they would be granted many benefits and discounts.

17
Figure 6 – web site structure
Primary menu
Landingpage
Englis
h
Sinhal
a
Tamil
Home page
5 sub pages
2 sub pages
3 sub pages
2 sub pages
2 Sub pages
Family
protection
Investment
Protection
Retirement
Student
scholarship
Health
Group life
Motor
insurance
Motorcycle
insurance
Three
Wheeler
insurance
Smart drive Commercial
Vehicle
insurance
. Car
Insurance
. Private
smart drive
. Fleet smart
drive
Secondarymenu
About
Careers
FAQs
Pay Premium
Contact Us
Employee
login
3 sub pages
3 subpages
4 sub pages

18
Figure 7 –Sub categories of web structure
5 sub pages
Life Advantage
Superinvestor
Single premium
advantage
jayamga
SuperBenefits
2 sub pages
Life advantage
Loan Protector
3 sub pages
Challenger
Life Advantage
Personal
advantage
2 sub pages
Life advantage
Sisumaga
2 Sub pages
60 Plus
Health
3 sub pages
Our employees
Career
opportunities
Refer and
employee
About company
Corporate
management
Corporate
sustainability
3 sub pages 4 sub pages
HR space
Employee learn
Employ Login
Customer login

19
Appendix 6- Finance Workings and Basic Assumptions
Depending on the usage
Per Km rate xx
Base rate xxx +
Annually total income from 1 customer xxx
Depending on the usage
Per Km rate xx
Base rate xxx +
Annually total income from 1 customer xxx
Per Km rate= value per Km * Km travelled by the customer
Annual total income = Avg annual income from 1 customer * Avg number of customers per yr
Base rate per year = $150
Value per Km = $ 0.005
Km - Kilo meter

20
The rate of the UBI premium rate does not depend on the vehicle value.
The base rate for every vehicle is $150. But the base value is only calculate in the customer's
1st year. From 2nd year onwards only the Km value is considered to calculate the revenue value

21
from the existing customers (Reason why the base rate is considered only in the 1st year is to
cover the UBI Gadget cost which is fix in the vehicles at the beginning).
After the installation, the customers gets 20days of free trial period
The number of customers from previous years does not reduce with years. The number of
existing customers only increase with the year
Annual Total income = revenue from the existing customers + revenue from the new
customer’s # of existing customers = Σ (# of customers in year1 + number of customers in year
2….)
Existing customer revenue = Σ (Annual income of year 1 without base rate + Annual income
of year 2 without base rate…)

22
Appendix 7 -UBI Revenue sheet
Workings
The rate of the UBI premium rate does not depend on the vehicle value. The base rate for every
vehicle is $150. After the installation/ connection. The customers gets 14 days of free trial
period
Base rate per year = $150
Value per Km = $ 0.005

23
Per mile rate= value per Km * Km travelled by the customer
Annual total income = Avg annual income from 1 customer * Avg number of customers per yr

24
Group reflection page
As a leading insurance company in Sri Lanka, we are planning to introduce a new motor
insurance scheme called Usage Based Insurance (UBI) policy for the first time in Sri Lanka.
UBI determines its monthly premium by analyzing the personal driving behaviors of the drivers
and this type of insurance policies are regarded as highly personalized. We are planning to use
telematics system and cloud service to gather necessary information which is needed to
determine the monthly premium.
In order to make this policy a success, we need to do a better environmental analysis and for
that we use Porter’s Five Force analysis. Through that we have identified different
environmental forces and their influence and how to prevent from them. Through the SWOT
analysis we have identified the internal and external factors including Strengths, Weaknesses,
Opportunities and Threats which can also make an impact on our business.
Our digital marketing plan explains the value proposition of our product, a description of our
target and how we will communicate our product to the target audience. Finally we add how
we will make money and a five year revenue projection with a brief description of our on line
web structure.
While continue on our new business plan, the major issues that we faced are how we bring this
idea to the real world and make it a success. Especially people in Sri Lanka are not willing to
embrace the new change at once. We have to communicate this idea to the customers and
explain the benefits of using this UBI policy step by step to the target customer group. The
other issue is the technological side of this business idea. All the customer groups are not in
the same technological knowledge level of using mobile app and monitoring the driving skills
and make needed changes. For that we have to train them on using app and explain how the
process is going on.
UBI policy tend to mitigate the rate of claims by making policy holders to earn rewards and
make a low monthly premium and directly this will leads to better driving behaviors. As well
as this will leads to minimize road accidents that would also be beneficial for the society.
Finally our new business idea of Usage Based Insurance (UBI) policy makes benefits to both
customers, company and also to the entire community.

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