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Leading insurance carrier offers personalized premium rates using telematics devices

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A leading North American insurance company has a UBI program spanning 20 states. Customers can monitor their driving behavior and view potential performance discounts online or via a mobile app.

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Leading insurance carrier offers personalized premium rates using telematics devices

  1. 1. Usage-based insurance (UBI) is an innovative program that offers drivers customized insurance rates based on individual driving habits. UBI programs are commonly implemented with a device plugging into the car’s OBD-II port. The device measures driving attributes such as mileage, hard braking, speed and travel times, and the data is transmitted to the insurance provider. A leading North American insurance company has a UBI program spanning 20 states. Customers can monitor their driving behavior and view potential performance discounts online or via a mobile app. During the initial UBI pilot with several thousand drivers, the company had five tiered rate plans based on data usage. Each device was manually assigned to a specific plan, which resulted in an average of $3,500 in monthly overage charges to the insurance company. These labor-intensive processes and data costs posed a serious challenge to the company, which was looking to implement and scale its UBI program nationwide. Control center helps control costs and improve data analytics The insurance company expanded the UBI program and now relies on Control Center to automate processes and analyze data. Control Center’s automation engine monitors real-time usage data from the UBI devices, and automatically adjusts each device to the optimal rate plan. By the third year, with more than 100,000 devices deployed, the insurance carrier had reduced their total monthly overage charges to a mere $600. Timely, accurate interpretation of data is key to any UBI program success. The insurance carrier relies on Control Center’s automation rules to alert them of any anomalous driver behavior. For example, one automation rule notifies the team that interprets metadata related to driver behavior when a device hits 90 percent of its expected data usage. Control Center automatically reports on those devices so the team can analyze them further with their telematics data analysis software. Leading insurance carrier offers personalized premium rates using telematics devices Usage-based Insurance (UBI) Customer Use Case “Control Center is the most straightforward solution, giving us exactly the right information at a glance,” said the UBI program and projects manager. CONFIDENTIAL
  2. 2. © Jasper. All rights reserved. +1.650.810.8000 www.jasper.com UC_UBI_101415 • Effectively manage costs • Quickly deploy and repurpose OBD-II devices based on market needs • Rapidly scale inventory while controlling costs to expand into new markets Business goals • Predicting and managing overage charges due to roaming • Reliance on manual processes, such as email communications to bring devices online, check connection status and detect issues before deployment • Effectively monitoring devices once deployed Operational challenges How Control Center helps • Automation rules put devices in optimal rate plans based on usage • APIs enable streamlined logistics so they can reprovision or onboard new devices based on market needs By the numbers More than 100,000 North America 3 flexible pool plans 14 different users, including ops, finance, telematics analysis, systems/ app dev Number of devices Geographic markets Rate plans User roles Control Center usage details Benefits Functionality • Average 60,000 automated provisioning actions/month • Automation rules • Quickly deploy new devices • Manage costs and monitor for anomalous device behavior • If data usage exceeds 60KB in a billing cycle, change to a 1MB rate plan • If data usage reaches 90 percent of its plan threshold, send email to telematics analysis team • If data usage reaches 99 percent of its plan threshold, send email to finance • Cost control • Analyze uncommon device behavior • Monitor for unexpected costs Automation examples • Runs 250,000 API pulls/month (EditTerminal) API examples • Cost control CONFIDENTIAL

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