With 2 million customers worldwide, Usage-based Insurance has passed its tipping point, and is revolutionizing the insurance industry. The 405-page Insurance Telematics Study is set to become the reference document for the industry. It describes how the changes impact each part of the value chain and the strategic implications.

1. PTOLEMUS Consulting Group
Insurance Telematics Study
Presentation of the report
May 2012 - Strictly confidential

2. PTOLEMUS in PAYD 1
Who we are
Brussels Frederic Bruneteau, Managing Director
• Ms. HEC Paris, Ms. CEMS University of Cologne
• Background: TomTom, SFR Vodafone, Arthur D. Little, BNP Paribas
• Specialties: LBS, telematics (eCall, PAYD, etc.), mobile networks
from Ptolemy, the Egyptian Fulvio Sansone, Associate Partner
savant who built the 1st map of • Electronic Engineer (Univ. Naples), MBA CUOA Altavilla Vicentina
the world in the 2rd century • Background: Oracle, ERTICO, ESOA, Ansaldo Trasporti, Ericsson
• Specialties: satellite, telematics, positioning
Paris Olivier Bourhis, Managing Partner
• The 1st international strategy consulting firm
• MBA ESCP-EAP Paris
specialized in geo-connected mobility • Background: Orga Systems, Cable & Wireless, TeleDanmark, PSA, Valeo
• Specialties: Mobile networks and applications, train telematics
• Strategy combined with real industry expertise
and operational experience
Munich John Craig, Associate Partner
• A focus on achieving results for our clients
• M.Eng. Electrical & Electronic Engineering, Heriot-Watt, Edinburgh
• 100 years of aggregated experience in • Background: Intermap, Destinator, Cambridge Positioning, Ericsson
telematics, location-based services & mobility • Specialties: Content & services, positioning, automotive
• Close links with the mobility ecosystem Milan Sergio Tusa, Associate Partner
- Advisory Board Member of EENA(1) • MBA ISIDA Palermo & Law degree, Palermo
- Member of ERTICO's(2) eSafety Forum and eCall • Background: Magneti Marelli, Cobra, Nokia, Tele Atlas, Philips, NCR
HeERO Observers Group • Specialties: Telematics, automotive, mapping
- Close connections to national ITS organisations, ACEA
(3), ASECAP(4), GSMA(5), etc.
Boston Eric Pite, Managing Partner
- Speakers at most leading industry events &
conferences • M. Eng. Telecom ParisTech, MBA London Business School
- Regular contributor to Telematics Update • Background: TomTom, Motorola, Sendo, Sagem
- Steering Committee Member of Mobile Monday (Brussels) • Specialties: Consumer electronics, LBS
(1) European Emergency Number Association (2) ITS Europe (3) Association of European Car Makers (4) European Association of Tolled 2
PTOLEMUS Motorways Operators (5) GSM Association

3. PTOLEMUS in PAYD 1
What we bring Our fields of expertise
Our consulting services Mobile content and social networking
Application stores, crowd-sourcing, etc.
Strategy Evaluation of Navigation & location-based services
definition investments Maps, traffic, fuel prices, speed cameras, weather, parking, etc.
New market entry, Strategic due
business plan diligence, Usage-based charging
development, board market assessment, PAYD / PHYD insurance, Road User Charging,
coaching and support feasibility studies PAYD car leasing & rental
Telematics & Intelligent Transport Systems
Innovation Connected car, tracking, fleet management, eCall, bCall,
Business
management Stolen Vehicle Recovery, Car As A Service, connected train, etc.
development
Product & services
Partnership strategies,
development, project Positioning / Location enablement
response to RFPs,
management and
lobbying
launch
M2M & connectivity
Our public reports
Emergency
European Insurance Global
Services
Location Telematics Location
Study Q1
Study 2010 Study Q1 2012 Study 2012
2012
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PTOLEMUS

4. PTOLEMUS in PAYD 1
We have acquired substantial experience in helping all
players in the geo-connected mobility ecosystem
Telecom operators OEMs & telematics vendors Content & application providers
Telecom infrastructure providers
ITS operators
• Partners in Paris, Munich, Milan, Boston
Consumer electronics makers and Brussels
• +50 years of experience in mobile
• +50 years of experience in telematics
Positioning solution providers Financiers
Insurers & assistance providers
Montezemolo
& Partners
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PTOLEMUS

5. PTOLEMUS in PAYD 1
A contact network with all major industry players
Example: some of our contacts within the PAYD insurance industry
PAYD SOLUTION
PROVIDERS
INSURERS
5
PTOLEMUS PAYD: Pay As You Drive insurance, i.e. based on number of actual number of kilometres driven

6. PTOLEMUS in PAYD 1
For 2 private equity firms, performed the due
diligence of Octo Telematics (Europe)
• These 2 private equity firms were
looking to acquire Octo Telematics, the
leading provider of PAYD solutions
worldwide
• In 2 weeks, we conducted a pan-
European review of the PAYD
insurance and PAYD solutions
markets
• We assessed the trends affecting the
nascent PAYD market in Europe,
thanks to a detailed investigation of
commercial trials / launches and
interviews with leading insurers
• Evaluated the validity of the
company’s business plan and
proposed revised assumptions for a
number of key inputs
• We recommended the investment,
based on the company's differentiated
product and strategic lead
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PTOLEMUS

7. PTOLEMUS in PAYD 1
For Qualcomm, conducted a pan-European survey
of the European PAYD / PHYD insurance market
• Qualcomm Enterprise Services
is the world's largest provider
of fleet management services
• Identified 15 target insurance
groups in 6 countries
• Identified and contacted
management level executives
to perform interviews and
assess PAYD progress and
needs
• Defined lessons to be learned
to improve Qualcomm's PAYD
system offering
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8. PTOLEMUS in PAYD 1
Assisted Magneti Marelli in developing its
usage-based charging telematics business
• Managed different telematic
businesses both in service provision
and in hardware
• Supported the management in
starting-up the business and setting-
up the logistics platform to supply the
insurance telematics business
• As a result, achieved the successful
launch of an automotive grade black
box
• Negotiated the contract with Octo
Telematics, notably its technical,
logistical and business terms
• Supported the adaptation process of
the first supply to Octo Telematics
• Supported the initial business model
for Autostrade
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PTOLEMUS

9. Telematics-based insurance 2
Insurers are becoming more mature about PAYD
PAYD trials & launches in Europe PAYD has passed the trial phase
Italy
• 94 trials worldwide (67 in Europe)
UK • 54 commercial launches (40 in
France Europe)
Germany
Ireland
• Success stories in multiple
Belgium
countries, notably Italy (Unipol),
Spain (Mapfre), France (Groupama),
Spain
the UK (Coverbox), Austria (Uniqa)
Austria
and the US (Progressive)
Hungary
Finland • Overall, we estimate PAYD-
Netherlands equipped vehicles at over 2 million
0 5 10 15 20 (worldwide)
Source: PTOLEMUS 9

10. Telematics-based insurance 2
In our view, the time has been through the peak & disillusionment phases
Insurance telematics has
come for insurance telematics
Test-Achats
gender ruling
Norwich Union European
Launch of Commission
launches PAYD Gender ruling
Insure The Box decides to
offer becomes
in the UK mandate eCall
Toyota & applicable
Aioi launch
PAYD on Norwich Union
Toyota's G- stops PAYD Launch of Towergate
Coverbox by Zurich
Book programme & Aviva launch launches Fleet
Cobra Wunelli PAYD Intelligence The AA and
commercial PHYD offer Admiral launch
Unipol & insurance
Aurora launch Progressive PHYD offers
Octo's solution launches
MyRate, first
NYC &
commercial Qualcomm
Groupama Massachussets
PHYD offer launches
launches investigate
PAYD / PHYD Moody's
Norwich Union Amaguiz PAYD PAYD models
solution recommends
launches PAYD MAIF & system
trial usage-based
MACIF launch insurance
unsuccessful
telematics Progressive Renault ÖSA launch
offer renames launches telematics offer
Progressive
MyRate commercial in Germany
pilots
TripSense UBI Snapshot insurance PAYD
Discount programme
program in
Minnesotta
Unipol trial of
Octo's solution
Technology Peak of
trigger expectations Disillusionment Enlightenment Maturity
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: PTOLEMUS, based on Gartner's Hype Cycle 10

11. Telematics-based insurance 2
Connectivity is changing everything - Numerous players will
be tempted to offer PAYD insurance
Connected car services
Car
OEMs
Navigation
&
search
vendors
Handset
TelemaCcs
vendors
service
providers
Resource Traffic &
Social Multimodal
management other eCall
networking navigation services
Maintenance
Stolen
firms Car Voice &
Car sharing LBA / LBM vehicle Mobile
maintenance messaging
recovery operators
Energy PAYD / Road user
Power
suppliers management Financing
PHYD
bCall
charging
Tolling
operators
Oil
companies Banks
&
Assistance
leasing
firms Insurers
providers
LBA: Location-based Advertising; LBM: Location-based Marketing PAYD: Pay As You Drive insurance; 11
PTOLEMUS Source: PTOLEMUS
PHYD: Pay How You Drive insurance

12. Introduction
Our Insurance Telematics study is the most comprehensive
report written on the subject
• 400 pages of analysis on the • 10-year market forecasts
PAYD / PHYD market based on - Country's readyness to telematics
- 66 interviews in 14 countries - Country forecasts for Italy, the UK,
- Over 120 figures (charts, tables...) France, Germany and Russia
- 2 years of research - Bottom-up estimates of the number of
policies for each insurer in EU
- Our experience & vision of the countries, the USA and in South
ecosystem incl. OEMs and TSPs Africa
• Case studies & learnings from • Insurer's telematics market model
ALD Automotive, Amaguiz, GM OnStar, results in Italy, the UK, France and
Hollard Insurance, Insurethebox, Liberty
Mutual, MAIF-MACIF, Norwich Union, Germany
Octo Telematics, Progressive, Solly Azar, • A handbook of suppliers'
State Farm, Unipol, Uniqa, Zurich
solutions including our own
• A strategic analysis of the value evaluation
chain evolution including • A complete set of
More than a research - The impact of eCall
study, a real strategic recommendations to
- The impact of the smartphone underwriters, TSPs, OEMs and
market analysis
- The impact of the Test-Achats / governments
gender ruling
3

13. Authors
This study has been written by strategists with decades of
experience of telematics, automotive & mobility
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PTOLEMUS

14. Primary research
We have interviewed nearly 80 companies across the
ecosystem
Organisation Country Organisation Country
Achmea Netherlands MAIF France
Airmax Group UK Masternaut France
Organisation Country Organisation Country
ALD Automotive France Metaskil UK
Cobra Automotive France Telogis USA
Allianz France Michelin France
Continental France Texa Italy
Allianz Germany Mobile Devices France
Covea France The Co-operative Insurance UK
Allianz Italy Navteq France
Coverbox UK TomTom Business Solutions UK
Amadeus Capital Partners UK Norton Rose UK
Crédit Mutuel France Touring Belgium
Amaguiz (Groupama) France Octo Telematics Italy
Cybit UK Toyota Belgium
Aplicom Finland Qualcomm Enterprise Services Netherlands
Daimler Insurance Services Germany Trimble MRM UK
Arval France SAP Switzerland
ERTICO - ITS Europe Belgium Uniqa Austria
Aviva UK Scope Technologies Singapore
European Commission Belgium Vivium / P&V Belgium
Axa Belgium Sensomatix Israel
Generali France Vodafone UK
Axa Assistance France Skymeter Canada
Generali Group Italy Wireless Car Sweden
Bird & Bird France Standard & Poors France
Greenroad Technologies US / Israel Wunelli UK
Cesar Satellite Russia Stok Nederland Netherlands
Hughes Telematics USA Young Marmalade UK
CNIL France Telit Italy
ING Netherlands Zurich Financial Services France
Lysanda UK Zurich Fleet Services UK
MACIF France Zurich Italy
Zurich UK
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15. Contents
400 pages of facts, figures, examples, case studies,
predictions and recommendations
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16. Contents
Extract pages of the report
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17. Contents
Extract pages of the report
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18. Contents
Over 220 charts, diagrammes, illustrations and tables
Customer lifetime cash flows for the insurer - UK
The telematics customer NPV explained - UK
£
Reduction
in claims
costs
900
Additional Telematics
investment costs Other
600 income expenses
Increase in
(due to
earned
Additional longer
premiums
VAS lifetime)
due to
longer
lifetime
Telematics £645
300 customer
£263 Average
customer
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19. Conclusion
This strategic analysis can help insurers, OEMs, TSPs make
Insurance Telematics a reality
• It addresses all sides of the subject,
from the business model to the
technology and privacy issues
• It looks at the issues from underwriters'
perspective but also from the OEM's, the
TSP's and the government sides
• This report provides you the way to
- Leverage the learnings from 10 years
and over 90 experiments worldwide
Bridging the gap
- Get the complete story: strategy,
between ideas marketing, business model, technical,
and realities legal, etc.
- Make decisions swiftly based on
verified facts & figures
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20. PTOLEMUS Consulting Group
Strategies for Mobile Companies
Brussels - Paris - Milan - Munich - Boston
contact@ptolemus.com
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