PTOLEMUS Consulting Group - Evolution de l'assurance télématique en Europe - Conférence Auto Connectée Argus de L'assurance 2016

PTOLEMUS Consulting Group

L’assurance auto connectée en Europe

Argus de l’Assurance - Paris -18 octobre 2016

PTOLEMUS intellectual property

Conférence Assurance Auto Connectée

PTOLEMUS

PTOLEMUS in a nutshell

The consulting & research firm for the connected world

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Strategy definition

Investment assistance

Innovation management

Business development

Consulting services

Procurement strategy

Deployment Usage-based charging Connected insurance, driving behaviour monitoring &

analytics, road charging / electronic tolling, fleet leasing & rental, car sharing, Car As A Service, etc.

Telematics & Intelligent Transport Systems ADAS, connected vehicle, crowd-sourcing, fleet

management, eCall, bCall, SVR, tracking, vehicle data analytics (OBD / CAN-bus), VRM, V2X, xFCD

Positioning / Location enablement

M2M & connectivity

Fields of expertise

Car infotainment & navigation Connected services (traffic information, fuel prices, speed

cameras, parking, POIs), maps, navigation

Research services

PTOLEMUS

PTOLEMUS in a nutshell

Clients across the mobility ecosystem

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Applications providers

Analytics providers

ITS operators, regulators & fleets

Insurers, aggregators & assistance providers

Device / location suppliers

Automotive manufacturers & suppliers Mobile telecom operators

Banks & private equity investors

2012 Directors’ report

(translation from the Italian original which remains the definitive version)

Financial Statements of the Company and the Group at 31 December 2012

27 March 2013

Legal and Administrative Office: 20121 Milan - Foro Buonaparte, 44

Fully paid-up share capital € 314,225,009.80 Tax Code and Milan Company Register no. 00931330583

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Telematics solution providers

PTOLEMUS 3

• 1,100 pages of analysis using: - 286 interviews in 28 countries - 5 years of research performed by

6 consultants in 4 countries - Insights from 30 consulting

projects - 350+ figures (charts, tables, etc.)

• 42 case studies including Allianz, AllState, Carrot Insurance, Vodafone Auto, Ingenie, OnStar- Progressive, Discovery Insure, Liberty Mutual, Octo Telematics, Renault-Amaguiz, State Farm, Unipol, Zurich

• A handbook of 60 suppliers' solutions including our own evaluation and rankings of TSPs, TTPs and analytics providers

• 30 insurance markets profiled

• 2020 & 2030 market forecasts - Canada, US, Latin America,

Europe, Russia, South Africa, India, Chinese and Japan

- Personal line / commercial line - Aftermarket / OEM

• Analyses of the disruptive forces at play - ADAS and autonomous vehicles - eCall & ERA Glonass mandates - The rise of smartphone apps - Big Data & analytics

•Targeted recommendations to insurers, regulators, TSP, OEMs and operators

* A free 125-page abstract can be downloaded from www.ptolemus.com

The analysis presented today comes from this report…

The reference report on the subject, quoted by

The Economist, the Financial Times and the

Wall Street Journal

Sources

PTOLEMUS 3

• Dissected the pricing and data management policies of the 27 largest UBI programmes: Admiral, Allianz, Allstate, American Family, AXA, Generali, Desjardins, Direct Line Group, Discovery Insure, Groupama, Ingenie, Insure the Box (Aioi Nissay Dowa), Intact Insurance, Intesa Sanpaolo Assicura, Liberty Mutual, Mapfre, Metromile, National General, Nationwide, Progressive, Reale Mutua, Sara Assicurazioni, State Farm, The Hartford, UnipolSai, Uniqa and Zurich

• Conducted 40 in-depth interviews with Telematics Service Providers (TSPs), analytics providers and insurers

• Reviewed more than 150 academic papers

• Consulted and appraised the solutions of 12 advanced analytics suppliers active in UBI, including Accenture, Cambridge Mobile Telematics, Cognizant, HERE, IBM, IMS, Lexis-Nexis / Wunelli, Octo Telematics, SAS, The Floow, Verisk Analytics and Willis Towers Watson

* A free abstract can be downloaded from www.ptolemus.com/analytics

… this new report…

Sources

The most comprehensive analysis of the connected

insurance analytics market and solutions

http://www.ptolemus.com/analytics

PTOLEMUS

… and our quarterly dashboard of the UBI market

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• 100-page barometer of the global UBI industry

- Covers over 200 insurers, TSPs and device providers

- Covers the US, Canada, France, Germany, Italy, Spain and the UK

- Now also Russia, China, Benelux, Latam & rest of Asia

- Issued on a quarterly basis - 250+ charts, tables & figures

•Leverages both public information and primary research

- A large set of public information collected from conferences, desk research, etc.

- Supplemented and validated by primary research & data (Interviews, supplier questionnaires, own market forecasts, etc.)

•Brings most important market news

•Estimates UBI volumes and sales for all main players

- Insurance companies - TSPs - Technology providers

• Deciphers the key market trends - UBI penetration - Number of programmes - Mix by business model (PAYD, PHYD, TBYB, etc.)

- Market share of all main insurers, TSPs and device makers

- Technology mix (Black boxes, OBD, apps, etc.)

- Business line mix - Segment mix (Young drivers, mature drivers, etc.)

- Channel mix aftermarket / OEMThe hard data you need to define & adjust your strategy

Sources

PTOLEMUS

Trends

A maelstrom of trends will impact insurance companies

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Insurtech

Insurance telematics Sharing economy

Autonomous cars

Connected cars

Smartphonisation

Usage-based everything

Digitalisation

Online Direct Gamification

Big Data

Predictive analytics

AI

Machine learning

IoT

PTOLEMUS

Text

A maelstrom of trends will impact AXA

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ESTIMATED IMPACT ON AUTO INSURANCE

MARKET

TODAY

AIMachine learning Insurtech

Sharing economy

ADAS & autonomous

vehicles

Connected cars

Usage-based everything

Online

Direct Gamification

Big Data

Predictive analytics

Insurance telematics

Smartphonisation

Digitalisation

IoT

TIME

Trends

…but not at the same time and with the same intensity

The waves - Impact of major trends on the auto insurance business

PTOLEMUSPTOLEMUS

Connected auto insurance: over 250 programmes globally

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Towards usage-based everything

Source: PTOLEMUS quarterly UBI dashboard

Number of active UBI programmes worldwide by quarter since 2009

PTOLEMUS Source: PTOLEMUS quarterly UBI dashboard 10

UBI has reached all continents

Number of active UBI programmes by country


PTOLEMUS

Global market dashboard

Source: PTOLEMUS - Note: * Excluding trials ** Excluding Try-Before-You-Buy schemes 11

The global UBI market grew to 14.1 million policies in Q2

Q2 2016

PTOLEMUS 12

Italian market evolution

In Italy, telematics has become mainstream

Source: PTOLEMUS quarterly UBI market dashboard estimates

Q2 2016

PTOLEMUS 13

UK & Ireland market evolution

The UK market is now growing beyond the young driver niche

Q2 2016


PTOLEMUS 14

German market evolution

The German market is starting to move too

Q2 2016


PTOLEMUS 15

Factors of successes Insurers

1 Don’t be stopped by failure, try again Amaguiz, Direct Line, Progressive, Liberty Mutual

2 Test, test and… test Allstate, Progressive

3 Build a simple, attractive and customer-centric experience Insure the Box

4 Bring a solution that addresses the key actuarial weaknesses of your market Drivelikeagirl, Unipol

5 Do not copy, innovate Discovery, Genertel, Progressive

6 Collect less personal data and get more customers! Allianz France, Progressive

7 Don’t hide the box, make a benefit of it! Allianz Italy, Progressive, Reale Mutua

Understanding UBI successes

What are the best practices?

Source: PTOLEMUS analysis of more than 100 UBI programmes

PTOLEMUS 16

Factors of successes Insurers

8 Heavily promote your telematics programme through advertising once it is ready Progressive

9 Make a nice business case for your internal / external physical channels and convince them! Intact, Progressive, Unipol

10 Be pragmatic, do not fall in love with your technology Allstate, Desjardins, Discovery

11 Conduct a structured technology sourcing process Generali, Progressive

12 Bring your top management onboard for the long haul Progressive, Unipol

13 Invest to understand & control the technology and the analytics Allstate, AXA, Generali, Progressive

14 Launch different models and see what sticks! Allianz, AXA, Generali, Liberty Mutual

Understanding UBI successes

What are the best practices?

Source: PTOLEMUS analysis of more than 100 UBI programmes

PTOLEMUS Source: PTOLEMUS analysis - Note: * Evaluation criteria detailed in the Connected Insurance Analytics Study

In the future, making sense of data will become critical

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Sophistication of analytics* Very highVery low

Volume of data

collected

Very low

Very highBIG DATANALYTICS


PTOLEMUS Source: PTOLEMUS UBI market forecasts

We expect UBI to reach 100 million policies by 2020 and even 600 million by 2030!

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PTOLEMUS

Conclusion

Insurers should anticipate the highest upcoming waves

Merci !

• Most insurers are confused by the multiplicity of waves and… tend to doubt all of them

• Once insurers will have handled smartphonisation then the major waves to catch will be Usage-based Everything, Connected Mobility and Autonomous

• Waiting is the best way to be hit by the wave

• The auto insurance business will be fully redefined and may not exist as such in 15 years

• The new paradigm still needs to be redefined

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PTOLEMUS Consulting Group

S t r a t e g i e s f o r M o b i l e C o m p a n i e s

Brussels - Boston - Chicago - Hanover - London Milan - New York - Moscow - Paris [email protected] www.ptolemus.com @PTOLEMUS

Frederic Bruneteau, Managing Director [email protected] +32 4 87 96 19 02