Innovate Products and ServicesGreg Meyer, COO, CSAA Insurance Group

Nick Eppinger, Sr. VP Insurance Sales & Membership, AAA Mid Atlantic

CREATE THE PERFECT CUSTOMER EXPERIENCE

EXPAND DISTRIBUTION AND GROW MEMBERSHIP

CONNECT TOTHE DIGITAL WORLD

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RM FOSTER A CULTURE OF INSIGHT AND INNOVATION

COMPLETE AND OPTIMIZE OUR MEMBER-CENTRIC PLATFORM

ACCELERATE AND INNOVATE PRODUCTS AND SERVICES

Signature Series

Signature Series Schedule Auto – Launched in all states except CA Home – Launched late 2014 in AZ, PA, VA, NJ Will launch in all other states, excluding CA, by

late 2016 Convert existing book by year-end 2017

Signature Series Design Homeowners Leverages affinity and unique data of 19.7 million

members Member loyalty benefits: By peril rating Territorial factor refinement (to reflect risk

concentrations) Inclusion of CAT-specific rating variables (e.g.,

elevation and distance to coast) Expanded number of market tiers Incorporate Signature Series Auto rating

variables

Signature Series Auto Results

Close Ratios Close ratio for multi-line members is

extraordinary relative to market (varies by state)

Market-leading price segmentation plan highly competitive for lowest loss frequency, high retention and high lifetime value members.

Superior insurance risk selection creates sustainable competitive pricing

Success in target segments also presents challenges in “Competitive” tiers

MULTILINE VS MONOLINE CLOSE RATIO – (ALL)

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20.0%

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Accelerate and Innovate Products and Services

UBI Connected Home Market E-Products

AutoPay

Joint-Use Vehicles

Create Usage-Based Offering for Members

Integralpart of a

connected car

AAA Arizonadistributes 3,000 units

in 2014

UBI

FoundationalCompetitively priced UBI product

CompetitiveTelematics benefits via a mobile app that displays driving stats

LeadingUBI compatible with multiple devices that incorporates connected-car technologies

Progressive and telematics providers including OnStar launch next-gen connected car capabilities

Metromile offers mobile app with telematics dongle so users can view vehicle location, miles driven, and engine status

Address Growing Trends of Sharing Economy

FoundationalDevelop ride-sharing endorsements in key markets

CompetitivePartner with sharing companies to distribute products and stayabreast of emerging trends

LeadingPartner with sharing companies to distribute products and stayabreast of emerging trends

Note: Rideshare and Home-Share markets uncertain – competitors cautious

MetLife partnered with Lyft to develop and distribute product for rideshare drivers

Joint-Use Vehicles

Enter Connected Home Market

Foundational Offer policy discounts to customers with connected home features

CompetitivePartner with connected home companies to streamline insurance discount offerings with connected home products

LeadingPartner with sharing companies (i.e., TNCs) to distribute products and keep abreast of emerging trends

Liberty Mutual and Vivint, one of the nation’s largest home automation companies, jointly offer insurance discounts with the purchase of connected home products

Connected Home Market

State Farm offers “Control Your Home, Protect Your Family and Save Up to 10% with Home Automation and Security”

E-Products

AutoPay

Create E-Products for Simplicity

Foundational Eliminate certain fees or provide discounts for some mix of e-doc delivery, auto-pay, and self-service

CompetitiveDeliver complete, easy-to-use online purchase with consultative tools packaged with e-docs, auto-pay & self-service – full e-product” experience

LeadingAllow for seamless migration to other channels during the lifecycle of the policy, especially at or after renewal – including assignment to local agent

Allstate offers 10% eSmart discount for an ePolicy

Progressive discounts Sign online Internet

(originate quote online) Paperless

(bills/docs via email)

Bank of America offers low-balance checking accounts (ATM or online-only) to some segments, e.g., college students, upgrading to no-fee access to tellers and other services as balances grow

Esurance Coverage Counselor gives users a few simple questions to answer for a list of coverages to consider