fbac mobility and autonomous vehicles · internal information © 2019 arity. all rights reserved....

Internal Information

© 2019 Arity. All rights reserved. Proprietary and Confidential.

FBAC Mobility and Autonomous VehiclesAugust 2019

Katie DeGraaf

Mobility Intelligence Solutions



: A real use case

: Shifting ecosystem

: Power of connection

Agenda



Past Emerging Future

The evolution of individualized insurance



Meet Katie and Kelly



Age

Adult

Gender

Female

Household status

Married, no children

Occupation

Arity

Hobbies

Traveling, Eating + Drinking, Volleyball

Insurance

Auto, Condo, Health

Age

Adult

Gender

Female

Household status

Married, 1 daughter

Occupation

Arity

Hobbies

Cubs games, Biking, Book club

Insurance

Home, Auto, Health

Meet Katie and Kelly



Katie and Kelly take on Austin

Cab to

ORD




Cab to

ORD

United

to AUS




Lyft from

airport to Hilton

Cab to

ORD

United

to AUS




Walk to

conference

Cab to

ORD

Lyft from

airport to Hilton

United

to AUS




Cab to

ORD

Walk to

conference

Lyft from

airport to Hilton

United

to AUS

Lime scooter to

Tillery Kitchen + Bar




Cab to

ORD

Walk to

conference

Lyft from

airport to Hilton

United

to AUS

Lime scooter to


Lyft to

Container Bar




Cab to

ORD

Walk to

conference

Lyft from

airport to Hilton

United

to AUS

Pedicab

to Hilton

Lime scooter to


Lyft to

Container Bar




Cab to

ORD

Walk to

conference

Lyft from

airport to Hilton

United

to AUS

Uber to

AUS

Pedicab

to Hilton

Lime scooter to


Lyft to

Container Bar




Cab to

ORD

Walk to

conference

Lyft from

airport to Hilton

United

to AUS

Uber to

AUS

Pedicab

to Hilton

Lime scooter to


Lyft to

Container Bar

United

to ORD



Mobility is complex

Cab to

ORD

Walk to

conference

Lyft from

airport to Hilton

United

to AUS

Uber to

AUS

Pedicab

to Hilton

Lime scooter to


Lyft to

Container Bar

United

to ORD



Katie and Kelly have very different mobility patterns



LIA

BIL

ITY

Walks to and

from work

Takes the Red

Line to & from

Cubs game

Spends time with

family at home

Bikes to & from

Oak street beach

HEALTH

INSURANCE

HEALTH

INSURANCE

HEALTH

INSURANCE

COVERED BY

CTA

-

PR

OP

ER

TY

-

Katie is predictable

THURSDAY SATURDAYFRIDAY

Walks

to & from work

Spends time with

family at home

HEALTH

INSURANCE

-

HEALTH

INSURANCE

-COVERED BY

HOME INSURANCE



LIA

BIL

ITY

Rides Divvy

bike to work

PR

OP

ER

TY

Kelly embraces adventure

THURSDAY SATURDAYFRIDAY

-

Rents

Turo Car to

Milwaukee

COVERED BY

UBER

Takes Uber

to Airbnb

Walks to and

from work

HEALTH

INSURANCE

Takes Uber

to Happy Hour

COVERED BY

UBER

Rides Lime

Scooter home

NO

COVERAGE

OFFERED

NO

COVERAGE

OFFERED

NO

COVERAGE

OFFERED

COVERED. BY

DIVVY

Walks home

from work

HEALTH

INSURANCE

-

Takes Lyft

to & from dinner

COVERED BY

LYFT

Runs 5k

in the am

HEALTH

INSURANCE

-

COVERED BY

TURO

COVERED BY

TURO

Rides

Bird Scooter to

Summerfest

NO

COVERAGE

OFFERED

COVERED BY

BIRD



LIABILITY

PROPERTY

Insurance is complex

COVERED BY

UBER

COVERED BY

UBER-

HEALTH

INSURANCE

COVERED BY

UBER

COVERED BY

UBER

NO

COVERAGE

OFFERED

NO

COVERAGE

OFFERED

NO

COVERAGE

OFFERED

COVERED BY

DIVVY

HEALTH

INSURANCE

-

COVERED BY

LYFT

COVERED BY

LYFT

HEALTH

INSURANCE

-

COVERED BY

TURO

COVERED BY

TURO

NO

COVERAGE

OFFERED

COVERED BY

BIRD

COVERED BY

CTA

COVERED BY

CTA-

LIABILITY

PROPERTY

HEALTH

INSURANCE

-

HEALTH

INSURANCE

-

HEALTH

INSURANCE

-

HEALTH

INSURANCE

-

HEALTH

INSURANCE

COVERED BY

HOME INSURANCE



: A real use case

: Shifting ecosystem


Agenda



MACRO TRENDS

The most indebted generation

: Auto debt at an all time high of more than

$1.2 trillion




$1.2 trillion

: Millennials are first generation happiest in

cities

Source: Adam Okulicz-Kozaryn & Rubia R. Valente (David H. Montgomery/CityLab)

AGE IN 2019 95+ 77-94 59-76 39-58 15-38

MACRO TRENDS

Millennials




$1.2 trillion


cities

: More than 46 percent of remote rural

counties are depopulating, compared to 24

percent of those adjacent to metropolitan

counties

MACRO TRENDS

Rural population decrease




$1.2 trillion


cities

: More than 46 percent of remote rural

counties are depopulating, compared to 24

percent of those adjacent to metropolitan

counties

: Exurb and Suburban growth greatest

MACRO TRENDS

Closer to cities



Source: Business Insider

Higher expectations and engagement with service providers

of consumers stated that a disconnected experience

would make them consider changing their service provider,

76% for 18-34 year olds.69%



of 18-34 year olds stated that they would be happy for their

insurance provider to utilize third-party data in order to

provide more personalized experience and lower premiums.

Source: Mule Soft

Higher expectations and engagement with service providers

62%



30%All travel behavior related to

social activities

32-43%of Americans have used rideshare in

the last 12 months

67%of consumers expect to

increase their use of mobility

services in the next 2 years

60Mgrowth expected of the global

carshare market to grow by 2022

$68BUber market cap

Rideshare and Carshare options on the rise

Multiple sources: McKinsey, Berg Insights, as of 3/19, Lyft’s valuation is $19B.

1%Rideshare VMT in US in 2017



Micromobility continues to gain momentum

Multiple sources: McKinsey, Berg Insights, as of 3/19, Lyft’s valuation is $19B.

50states with a

bikeshare program

30%riders replaced an

automobile trip with most

recent e-scooter ride

$2.5Brecent valuation of Bird

40%of e-scooter riders have

been in an accident or

know someone who has

61%said they would be willing to

spend extra money on top

of their ride cost to cover

third-party liability insurance

52%of respondents said they would

prefer pay-per-ride insurance for e-

scooter ride coverage instead of

annual or monthly insurance plans



OEMs are accelerating their global strategies for embedded

connectivity and connected services business models

225Mcars with embedded

connectivity will be sold

in the next 5 years

84%of cars sold will have

screen duplication

solutions

66%of cars sold will have

OTA update capability

Source: SBD Automotive



Autonomous vehicles have hurdles to overcome

15%decreased BI

from forward

collision warning

$1,324average cost of a

well-rated headlight (HLDI)

$2,300amount extra consumers

willing to pay for autonomous

features

Source: SBD Automotive



265.9272.6 277.8 281.9 285.3

23.430.1

37.344.5

50.8

0

50

100

150

200

250

300

2019 2020 2021 2022 2023

Smartphone users Connected car usersSource:

Statista “Digital Market Outlook”

US smartphone vs. connected car users (millions)



Accelerometer

Speed and braking detection

Gyroscope

Contextual driving

Magnetometer

Driver / passenger detection

GPS

Location and miles traveled

Touch screen

Distracted driving

Proximity sensor

Type of distracted driving

Barometer

Collision detection

Wi-fi

On-board processing

NFC

Mobile payments

The future is in the

phone



: A real use case

: Shifting trends


Agenda



“You need a new business

model”



CONTINUOUS CONNECTION

A portfolio of connected strategies to optimize your customer experience

Curated offering

Deliver relevant,

personalized experience

reducing customer time

and hassle

Respond to desire

Provide customers with

services and products

they've requested as

quickly and seamlessly as

possible

Coach behavior

Motivate customers to

achieve their goals

through timely nudges

Automatic execution

Meet the needs of

customers even before

they've become aware of

the needs


So, what does this look like for insurance?



EVENT-BASED INSURANCE

New driver is added

to their policy


A crash leads customer to

be involved in the claims

experience


Policy renewal; price

increases and customer

shops around

Today, engagement with policyholders is transactional and reactive


Telematics enables continuous engagement


© 2019 Arity. All rights reserved. Proprietary and Confidential.Instagram

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CURATED OFFERING

Create personalized, targeted offers to drive adoption



Instantly provide assistance during a traumatic time of needAUTOMATIC EXECUTION



Corroborating subjective events with objective dataRESPOND TO DESIRE



COACH BEHAVIOR

Motivate drivers to become safer through timely nudges



Connections driving opportunity for improved customer experience

Acquisition

Claims

Service

Product and Pricing



Thank you.

Katie DeGraaf

[email protected]

312.774.6041

fbac mobility and autonomous vehicles · internal information © 2019 arity. all rights reserved....

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