Steve Surhigh, VP, HARMAN shares the importance building a secure automotive ecosystem.

1. September 2018
Establishing Communities of
Trust in a Connected World
Steve Surhigh, Vice President, HARMAN

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Artificial
Intelligence

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OEM Systems
Ride Hailing
CarSharing
Fleet
Intents
Actions
Actions

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Devices
Intents
Actions
• Secure
• Decentralized
• Simple
• Efficient Actions

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Car
Intent
Machine
Learning
Actions
Learnings/
Insights
Occupants
Actions
Vehicle Events
Gaze
Recognition
Button
Press
Gesture
Voice
Utterance
People Office
Third party
business
Car
Home Devices

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Blockchain
node
Blockchain
node
• Car conditions,driving behavior and
maintenance data →estimate premium
• Wear/tear,repair and billing data → prevent
fraud and automate settlement
Vehicle
Insurers
(Usage-based
Insurance)
RepairShop Network
(Insurer’s partner)
Service Centers
(Dealer’s network)
Blockchain
node
Blockchain
node
• Car conditions (alerts for tire pressure, brake
wear,oil temperature,airbag deployment,etc.)
• Driving behavior (rapid accelerating, hard
braking,location(geo-fencing), operating time,etc.)
• Repair data (partsexchange)
• Billing data (parts/servicescharge)
• Maintenance history (expendables
replacement,additionalservices,etc.)
• Car conditions and recall information
→ fix problems quickly and accurately with
warranty
• Car conditions and insurance coverage
→ fix problems accurately and charge properly
withpolicies
• Insurance coverage(liabilities)

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Value of Blockchain to the InsuranceIndustry Benefits of Trusted Relationship
OEM
(Connected Car)
Insurer
(Usage-Based
Insurance)
3rd Parties
(Repair and
Maintenance)
Driver
(Policyholder)
Monetize in-vehicle data by efficiently and securely sharing the
data with insurers and 3rd parties
Detect fraudulent claims by utilizing transparent and
immutable data from OEM and other 3rd parties
Reduce operation costs by automating key processes such as
underwriting and claims
Shorten time required for settlement with smart contracts ensuring
predefined conditions and preventing double payment
Improve quality of services by checking in-vehicle data without
privacy issues
Enhance convenience, safety and security for registering/using
services and confirming privacy usage for service providers in the
UBI ecosystem
• Increase effectiveness in fraud detection and pricing:
– Detect identity fraud and falsified damage reports
– Confirm subsequent ownership and location changes (shareddata)
– Prove data and time of policy issuance (time stamping)
• Reduce administrative/operations costs:
– Automate verification of policyholder identity and contract validity
(digital identity)
– Auditable registration of claims and data from 3rdparties
(encrypted transaction of privacy data)
– Automate claims handling : payout for claims only when the car is repaired
in a garage preferred and predefined by the insurer (smart contract)
• Enhance customer engagement:
– Speed up and simplify the onboarding of newcustomers
(know-your-customer)
– No personal data on the blockchain: customers hold controlof personal
data (private/public keys)

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Benefits / Value Proposition
• Fast response in case of anemergency
• Data access can be granted only forpermissioned parties,protecting
driver’s data privacy1)
• Faster reimbursement from Insurance company
1) Blockchain technology in the insurance sector, McKinsey&Co. (2017.01)
• Getting advance notice on upcoming work
• Faster reimbursement from insurance (when paid
directly by insurance company)
• Earlier notification of accidents
• More precise communication regarding the location and nature
of accidents
① In-vehicle data on accident
② OEM shares accident information withpolice,ambulance
③ OEM shares accident information with the relevantinsurer
④ Insurer updates the repair shops about the upcoming work
⑤ Repair shops updates the Nexledger blockchain with repairdetails
Data sharing overAPI
Data sharing over NexledgerBlockChain
Nexledger node
InsurersEmergency
②
③
①
Driver
⑤④
OEM RepairShops
• New revenue streams of data monetization from insurers and
emergency services
• Low cost of establishing transparent communication system
• Less fraud by time-stamping all relevant events
• Less effort required to process accident claims
• Higher customer satisfaction over fast claim processing

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Type Event Frequency Times per 10 years
Ownership History
• Ownership Change (OEM
/ Fleet Manager to
dealer)
• 1 time every 6.5 years 1.53
Maintenance History
• Oil Change
• Tire Change
• 100,000m Service
• 2 times per year
• 1 time every 2.5 years
• Every 7 years
20
4
1.4
Accident History • Accident • 1 time every 14 years 0.71
Administrative Events
• Recall
• Insurance Renewal
• 1 time per year
• 2 times / year
10
20
Telematics
• UBI Driving assessment
Report
• 1 / day 3650
Total 3708
Life Length 10
Years
Assumptions:
15,000 miles driven
/ year

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OEM Systems
Ride Hailing
CarSharing
Fleet
Intents
Actions
Actions
Trust

12. Copyright ⓒ 2018 HARMAN All Rights reserved.12© 2018 HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
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