Our Managing Director of Smart & M2M, Wendy McMillan, talks through the impact of the IoT on the insurance industry at the Insurance and Analytics convention in September 2014.

1. Copyright © Arqiva Limited 2014 Company confidential 1
The Internet of Things – The Next Wave of Change

2. Copyright © Arqiva Limited 2014 Company confidential 2
Divider slide title
Rise of the Machines
2020
451m connected
devices in the UK
2013
100m connected
devices in the UK
24% CAGR
Source: Machina Research

3. Copyright © Arqiva Limited 2014 Company confidential 3
Data is the lifeblood of insurance
“The more the Internet of Things knows about
you, the more that insurance companies are
able to slurp that data and incentivize you to
walk the straight and narrow”
The Register – May 2014
"You know the way that advertising turned out to be
the native business model for the internet? I think
that insurance is going to be the native business
model for the Internet of Things”
Tim O’Reilly – May 2014

4. Copyright © Arqiva Limited 2014 Company confidential 4
Connected Smoke AlarmsThe internet of things creates opportunities
Property
Auto
Liability
Health Pet
Travel Livestock
across a broad range of insurance sectors
And others….

5. Copyright © Arqiva Limited 2014 Company confidential 5
Arqiva’s Business
TV and Radio
“Market leader in
terrestrial TV and radio
broadcast
infrastructure”
“Nearly 50%
market share of
UK channels uplinked”
Satellite
“Own largest
independent
portfolio of
WiFi/wireless sites”
Telecoms
and WiFi
“Building
a smart network for
10m homes and a
national IoT
network”
Smart Metering
and M2M

6. Copyright © Arqiva Limited 2014 Company confidential 6
Arqiva’s role in the Internet of Things
Arqiva provides a unique breadth of
connectivity technologies
IoT
Connectivity
Satellite
LRR
(Sensus)
UNB
(SIGFOX)
2G
3G/4G
WiFi►Delivering smart metering
to connect electricity and
gas in 10 million homes –
►Partnered with SIGFOX to
create new national Internet
of Things network

7. Copyright © Arqiva Limited 2014 Company confidential 7
Car Insurance
Leading the way in use of technology to better inform of risk
 Automotive telematics market will grow to 1.4B connections by 2020
 GPS location for stolen vehicles reported 479,000 incidents of car
theft in 2010
Even more possibilities for the future

8. Copyright © Arqiva Limited 2014 Company confidential 8
Connected Smoke Alarms
►EU Insurer anticipating the new French regulation that every
household will be equipped with a smoke detector by 2015.
►SIGFOX network enables insured customers to be alerted of any
issues.
• In case of intrusion/fire warnings.
• Replacement battery if running low.

9. Copyright © Arqiva Limited 2014 Company confidential 9
Home Security
 Smartphone enabled home security allowing:
• On-demand access to cameras
• Home temperature monitoring
• Noise detection with push notifications to smartphones

10. Copyright © Arqiva Limited 2014 Company confidential 10
Home Access Control
Innovative access control
through smartphones
 Keyless, encrypted locking technology
 Give access to a cleaner a couple of hours a
week.
 Log history of who’s entered and exited
 Landlords issuing new tenants keys and
removing access from previous tenants.

11. Copyright © Arqiva Limited 2014 Company confidential 11
Flood Insurance
Richer data for better forecasts, revising flood protection
investment and infrastructure
 Key defence mechanisms to limit damage and increase
commercial property protection in insurance.
 Insurers could incentivise investment in protection and resilience.

12. Copyright © Arqiva Limited 2014 Company confidential 12
Tracking Devices
Asset Tracking examples
 Bike Insurance
 Agricultural Insurance
 Pet Insurance
 Travel Insurance

13. Copyright © Arqiva Limited 2014 Company confidential 13
Pet Insurance  Smart collars enable pet
owners to foresee early signs of
diseases and behavioural
issues, sending owners alerts
via SMS.
 Sensors that monitor
temperature, pulse and
respiration, allowing owners to
share information with vets.
• Activity patterns
• Calories consumed
• Heart rate variability

14. Copyright © Arqiva Limited 2014 Company confidential 14
Insuring valuable items
 Valuable objects will have
electronic sensors
manufactured into them
 ‘Smart Dust’
 Tracking items in real-time
location.

15. Copyright © Arqiva Limited 2014 Company confidential 15
Smart Technology in Construction
 Autonomous and low cost SIGFOX modems provide
connectivity for sensors with mechanical constraints in
construction
 Issues affecting construction insurance:
• Site theft and fire supervision
• Worker protection
• Real time building monitoring
• Optimized fleet management

16. Copyright © Arqiva Limited 2014 Company confidential 16
Health Insurance
Digital technology to facilitate changing behaviour.
 Lack of exercise, imbalanced diet and lack of medication adherence
provide opportunities in connected health and health insurance.
 Connected pill bottles to remind patients when to take their pills, and
track when they haven’t

17. Copyright © Arqiva Limited 2014 Company confidential 17
The Internet of Things – The Next Wave of Change