major trends in ubi 2015
TRANSCRIPT
PTOLEMUS Consulting Group
Growth analysis and major trends in the European UBI market
SMi’s Telematics for Usage-Based InsuranceConference
London – 18th February 2015 - PTOLEMUS intellectual property
PTOLEMUS
PTOLEMUS in a nutshell
We help all players in the mobility ecosystem
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ITS operators & regulators Fleets
Fleets
Mobile device & positioning suppliers
Telecom operators Automotive OEMs & suppliers
Financiers
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
www.itkgroup.com
Insurers, aggregators & assistance providers
Content & application providers
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Telematics solution providers
PTOLEMUS 3
The Internet of Things affects many insurance lines
The car’s connections to other nodes and networks
Source: PTOLEMUS
e-health (V2P)
Retail
Digital home
Smart Grid (V2G) Smart City
Road network V2I, V2V, ETC
Infotainment application integration
Future device environment - Macro-trends 2
PTOLEMUS 3
Major trends that insurers must take into account
Major trends
Smartphonisation
Massification
Diversification
Autonomous car
Car as a Service
Integration with claims
Big data management
Connected vehicle integration
New entrants and models
PTOLEMUS 3
We will focus on these 5 trends
Major trends
Smartphonisation
Massification
Diversification
Autonomous car
Car as a Service
Integration with claims
Big data management
Connected vehicle integration
New entrants and models
PTOLEMUS Source: PTOLEMUS
Smartphone-based offer is becoming the norm, first as a pre-quote rating tool
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• Wunelli partnered with SSP for smartphone based UBI
- 1,000 Brokers will be able to obtain a quote via SSP systems from a panel of Soteria Drive insurers
• Other Wunelli-backed insurers, the AA, AXA and Co-operative have also launched their application
• Aviva has launched its own application
- For customers with premium above £400, discount can reach up to 20% (Score over 7.1)
• So has Direct Line with discount of up to 10%
5Trends and growth factors - smartphonisation
PTOLEMUS
Smartphones are the form factor of the future for UBI
• 3M driving assistance app
• 75% penetration: reach mass scale and new segments
• More sensors than a black box (The Floow uses 9 of them)
• Use as a universal interface, data hub or tracking device
• Feature pilots include customer service, billing, payment, claims...
• Can also complement other devices
• Hybrid solution will rapidly calibrate smartphone algorithms
• 80% of what black boxes do
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Accelerometer
3-axis gyroscope
Glonass
Barometer
Proximity sensor
Light level Touch screen
Camera(s)
GPS location & timeWiFiNFCBluetooth
iBeacon
Magneto-meter
4G connectivity
Microphone
Voice & messaging communication
Fingerprint sensor
A smartphone brings more sensors than a black box
Trends and growth factors - smartphonisation
Source: PTOLEMUS, The Floow
PTOLEMUS
Total volumes of new policies sold by device type - OEM & aftermarket (million)
Source: PTOLEMUS UBI market forecasts
The EU5 device market will become more fragmented...
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Mutation of device form factors - Market uptake 5
EU5
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4
6
8
10
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14
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2012 2013 2014 2015 2016 2017 2018 2019 2020
EU5- Volumes of policies sold by device type (million)
Line-fitted systems
Smartphones
Dash cameras
Windscreen devices
Self-install OBUs
Professionally-installed OBUs
Cut-down OBD dongles
Rich OBD dongles
PTOLEMUS
• Easy to develop - Standard cars API for all brands, standard OSs (Android, iOS, HTML5, Genivi, etc.) and SDK
• Quick to market - Move dev timing from 4 years to 4 months. Set-up & update over the air, using smartphone‘s virtualization
• Rich functionalities - Richer car APIs (command & control), standard home API, city API, health API, wearable API…
• Supplier & customer agnostic - Standard app or white label app to be customised, no tie-in with suppliers
=> OAA will disrupt today’s connected service value chain
Android is creating a smartphone-based data collection standard for the car industry
2 mainstream car makers
Chinese OEMs
3 luxury car OEMs
Key factors to attract apps developersOEMs that did not signed the OAA agreement
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Trends and growth factors - smartcar
PTOLEMUS Source: PTOLEMUS, Renault
Renault is the fist car manufacturer to build partnerships with a panel of insurers and to provide different UBI models
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Renault's approach to telematics
Trends and growth factors - smartcar
Based on its R-link telematics platform, Renault offers 3 partnerships models to insurers:
• B2B model offering access to R-Link data to any insurance company wanting to provide UBI under its own brand
• A co-marketing model where the data is used in the same way but the branding and communication is shared between the 2 brands
• A white label model where Renault sells telematics insurance under its own brand with an insurance company providing the underwriting only
Renault’s projection is to have 200,000 R-Link equipped cars on the road by the end of 2014, and 2.3 million by 2020
Amaguiz chose the co-marketing model for its PAYD product
PTOLEMUS
Annual global connected car sales by connectivity type (million units)
Source: GSMA, Exane BNP Paribas estimates
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We expect embedded solutions to gradually become dominant
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Trends and growth factors - smartcar
PTOLEMUS Source: PTOLEMUS
From the US come new models but also new dangers
• New dedicated channel players: OEM, bCall, Claims, Aggregators, Actuarial & data houses
• Upcoming disruption from the 2 giants- Google will enter the insurance market- Google could acquired an “Indy Dongle”and
integrated its offer with its aggregator capabilities- Apple adds sensors to its iPhone every year- Apple has patent to provide e911 calls
• A large number of well-funded B2C2B start-ups have emerged: Automatic, Mojio and Zubie
- Started to offer a "free" channel to market to insurers
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3Trends and growth factors - new models and changing ecosystem
Insurers and service providers
will need to keep a close watch on how this market evolve
and be ready to partner with an
adapted offer
PTOLEMUS
Early partnership in the UBI ecosystem
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• Wide range of functions and price
• Independent dongle providers can become aggregators
- 2-side model: VAS + UBI sales channel- Access to car + driver data - Natural data custodian
• They will require a simplified rating process - ex: Progressive’s 3 criteria
• Mobile operators are potential allies but their commitment needs to be validated
• Car sharing transforms the car into a service
- Insurers will need to provide specific covers
Indy dongles are rapidly finding a place in this market
Trends and growth factors - new models and changing ecosystem
PTOLEMUS 14
Key factors
We expect over 100 million UBI customers worldwide by 2020
Source: PTOLEMUS UBI Global Study
Global motor insurance premiums from telematics (€ in millions)
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10 000
20 000
30 000
40 000
50 000
60 000
2012 2013 2014 2015 2016 2017 2018 2019 2020
UBI premium generated - Total market - Worldwide
EuropeNorth AmericaAsia - PacificLATAMAfrica
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• Global increase in online insurance
• Regulatory mandates such as Contran 245, ERA Glonass or eCall
• More connected services and vehicle leading to better optimisation
• Chain reaction from the first leader
• Since Progressive all US insurers have a UBI product
• Since Industrial Alliance, 6 other insurers have followed in Canada
• A new programme every 6 month appears in Germany
• Generali has announced 2 UBI trials in Brazil
• 2 brokers announced UBI programmes in the same month in Australia
Trends and growth factors - the market opportunity
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15
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2012 2013 2014 2015 2016 2017 2018 2019 2020
FranceGermanyItalyUKRest of EU 27RussiaRest of Europe
New telematics-enabled policies (in millions)European personal line market
PTOLEMUS
Conclusion
UBI is heading towards the mass market. How to avoid becoming redundant by telematics newcomers?
Thank you!
• Insure you have solid and reliable app’s development capabilities
• Produce individual and family insurance plans using pervasive connectivity
• Migrate all insurance customer services on multi-device platforms
• Reinforce internal IT system and data analytics to truly leverage telematics-based insurance data
• Constantly monitor the telematics architecture’s evolution
• Develop strong affinity partnerships with car makers, automobile clubs, dealerships and other types of devices
• Export UBI model outside the car to other connected “Things”
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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 - Hamburg - London Milan - New York - Paris - [email protected]@PTOLEMUS
Thomas Hallauer, Research [email protected]+44 7973 889 392
PTOLEMUS
PTOLEMUS in a nutshell
Who we are
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• The 1st international strategy consulting firm specialised in telematics and location-based services
• Strategy combined with real industry expertise and operational experience
• A focus on achieving results for our clients
• Close links with the mobility ecosystem
• Presence in 7 countries - Austria, Belgium, France, Germany, Italy, the UK & the US
from Ptolemy, the Egyptian savant who built the 1st
map of the world in the 2rd century
• Over 20 consultants bringing 160 years of aggregated experience in telematics, geo-location & mobility
• 50 assignments completed in last 5 years
• Over $1 million revenues in 2014
PTOLEMUS
PTOLEMUS in a nutshell
An international management team
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Brussels Frederic Bruneteau, Managing Director
• MS. HEC Paris, MS. CEMS University of Cologne• Background: TomTom, Vodafone, Arthur D. Little, BNP Paribas• Specialties: LBS, telematics (eCall, UBI, etc.), mobile networks
Frederic Lassara, Senior Expert
• MSc. Management, Marseille Business School, Bachelor of Laws, University of Aix-Marseille & IHEDN
• Background: PSA Peugeot Citroën, Covisint, Datops• Specialties: Automotive, telematics
Chicago Valerie Shuman, Senior Expert
• BA with highest honors from the University of Michigan• Background: Navteq, Ygomi, CVTA, SEI, Verety• Specialties: Connected vehicle services & content
London Hamburg Meinrad Zeller, Senior Expert
• MS Mathematics & Computer Science, Univ. of Göttingen• Background: TomTom, Philips Automotive, Philips Semiconductors• Specialties: Automotive telematics & electronics
Milan Sergio Tusa, Associate Partner
• MBA ISIDA Palermo & Law degree, Palermo• Background: Magneti Marelli, Cobra, Nokia, Tele Atlas, Philips• Specialties: Telematics, automotive, mapping
Alex Willard, Director, Global Technology Practice• BSc. Engineering & Naval Architecture and MSc. Systems
Monitoring & Diagnosis, Southampton City University• Background: Lysanda, MSX International, Ford, Roush Tech.• Specialties: Fleet telematics, car monitoring tools
Boston Eric Pite, Associate Partner
• M. Eng., Telecom ParisTech & MBA, London Business School• Background: TomTom, Motorola, Sendo, Sagem• Specialties: Consumer electronics, connected vehicle services
Thomas Hallauer, Research & Marketing Director• BA, International Business, Southbank University London• Background: Mobile Devices, Telematics Update• Specialties: UBI, location-based services
Maria Grazia Verardi, Senior Expert
• MSc. Physics, Bologna University• Background: Cobra Automotive, Delta Electronics, Ylum• Specialties: Telematics, automotive, R&D in ITS
Vienna Marijan Mumdziev, Senior Expert
• PhD Computing, Univ. Vienna & MBA Univ. Minneapolis• Background: Deutsche Telekom, Nokia Siemens, Telekom Austria• Specialties: Mobile telecoms, UBI
Paris
New York
PTOLEMUS
PTOLEMUS in a nutshell
PTOLEMUS is the first strategy consulting firm focused on telematics and geolocation
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Strategy definition
Vision creation, strategic
positioning, business plan development,
board coaching & support
Investment assistanceStrategic due
diligence, market
assessment, feasibility study,
M&A, post-acquisition plan
Innovation management
Value proposition definition, product
& services development,
architecture design, assistance to
launch
Business development
Partnership strategies,
detection of opportunities, ecosystem-
building, response to tenders
Our consulting services
Procurement strategy
Specification of requirements &
tender documents, launch of tenders,
supplier negotiation & selection
Implementation
Deployment plans, complex / high risk project & program management, risk
analysis & mitigation strategy
Usage-based charging PAYD / PHYD insurance, road charging / electronic tolling, fleet leasing & rental, car sharing, Car As A Service, etc.
Telematics & Intelligent Transport SystemsADAS, connected vehicle, crowd-sourcing, fleet
management, eCall, bCall, SVR, tracking, vehicle data analytics (OBD / CAN-bus), VRM, V2X, xFCD
Positioning / Location enablement
M2M & connectivity
Our fields of expertise
Car infotainment & navigationConnected services (Traffic information, fuel prices, speed
cameras, weather, parking, points of interest, social networking), driver monitoring, maps, smartphone
integration, smartphone-, PND- or embedded navigation,
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PTOLEMUS in a nutshell
We just published the Usage-Based Insurance Global Study, the most comprehensive report written on the subject
• 800 pages of in-depth analysis on the UBI market based on - 200+ interviews in 25 countries- 3 years of research performed by 6
consultants in 4 countries- The learnings from 15+ consulting
assignments for insurers, OEMs, TSPs, investors, etc.
- Our experience & vision of the ecosystem incl. OEMs and TSPs
- 350+ figures (charts, tables, etc.)- 60 relevant patents listed
• Case studies & learnings from ALD Automotive, Autoline, Allianz, Amaguiz, Carrot, Coverbox, Discovery Insure, Generali, GM OnStar, Hollard Insurance, Ingenie, Insurethebox, LeasePlan, Liberty Mutual, MAIF-MACIF, Norwich Union, Octo Telematics, Progressive, Solly Azar, Quindell, State Farm, Unipol, Uniqa, UK aggregators and Google, Young Marmalade, Zurich
• Detailed profiles of - 20 insurance markets- 20 leading UBI insurers
• A handbook of 45 suppliers' solutions including our own evaluation & ranking
• 10-year market forecasts - Country's readiness to telematics- Forecasts for the Canadian, US, Latin
American, European, Russian, African, Indian, Chinese and Japanese markets
- Personal line / commercial line- Aftermarket / OEM
• Insurer's telematics market model results in 5 markets
• A complete set of recommendations to carriers, TSPs, OEMs, MNOs and governments
• A strategic analysis of the value chain evolution including - The impacts of EOBR, eCall, CONTRAN 345,
ERA Glonass, the Monti law, the gender ruling, etc.
- The impact of the smartphone- Managing Big Data
The global reference report on the subject, quoted by
The Economist, the Financial Times and The
Wall Street Journal
Note: A free 100-page abstract can be downloaded from www.ptolemus.com/insurance