Table of Contents 2016


Table of Contents and lists of graphs

Table of Contents and lists of graphs

 

Section I THE UBI MARKET FUNDAMENTALS
A Brief Introduction to insurance telematics
1 What is insurance telematics?
2 UBI or insurance telematics?
a Self-reporting based policies
b
Telematics-based insurance
3 SWOT analysis of the 3 main rating models
B Why many national insurance markets are not profitable
1 A maturing business in the most advanced markets
2 Increasing churn
3 Changing claims costs
a
Repair costs
b
Personal injury claims
a
Fraud
4 Filling regulations
5 The advent of online distribution
6 Sustainability of the mutualisation model
C The impact of the smartcar on the insurance sector
1 The technological step that will change cars
2 Active safety functions’ impact on driving
3 Impact of active safety on insurers and service providers
D Can telematics solve the motor insurance woes
1 A European perspective on insurance telematics
2 The US market’s appetite for telematics
3 Who is UBI for
4 Some of the chalenges ahead
Section II WHY UBI SHOULD TAKE OFF AND WHY IT HASN’T YET
A Analysing the drivers for UBI growth
1 The benefits of telematics
2 Technological drivers
a
More affordable black boxes
b
Richer OBD Dongle solutions
c
The next evolutionary steps of the dongle form factor
d
Enticing hybrid opportunities
e
The changing role of smartphones
f
Less impact on the back-office
3 Economic drivers
a
Better risk management
b
Customer retention
c
Optimised risk selection
d
Customers’ improvement in driving behaviour
e
Telematics will come from competition
4 Regulatory drivers
a
The eCall mandate (2004-2012)
1) Objectives and history
2) Current status
Impacts of eCall
b
The Viterbo judgment (2006)
c
The Test-Achats gender ruling (2011)
d
The Mario Monti legislation in Italy (2012)
e
Proposed Changes to the European Regulatory Landscape
B Reasons why PAYD has not taken off globally
1 Challenges for insurers
a
Privacy issues
b
Regulatory barriers
c
Intellectual property issues
d
Hurdles in implementation
e
Lack of a clear business case
f
Difficulty to convince indirect sales networks
g
A long deployment time
2 Challenges for consumers
a
Lack of sufficient and unbiased information
b
Privacy concerns
c
Potential conflict of interest
3 What this means for the future
Section III HOW TO CREATE A SUCCESSFUL USAGE BASED INSURANCE SERVICE
A Learn from recent history
1 What do the pioneers teach us
a
2004-2008: Norwich Union
b
2008-2012: MAIF / MACIF
c
2007-2012: UNIQA
d
2004-2013: Progressive
e
State Farm, the aftermarket against the OEM
f
Ingenie and the young driver’s market
g
Liberty Mutual OnBoard Advisor
2 Lessons from Italy’s telematics take-off
a
Unipol’s model
b
Reasons for the Italian take-off
3 Synthesis of the lessons from the past
B Reinvent the concept of “motor insurer”
1 Building a comprehensive customer value proposition
2 Becoming an ISP (Insurance Service Provider)
3 Creating a positive customer experience (Carrot…)
a
Follow best practices on relationship management in UBI
b
Create an original and balanced customer experience
4 Designing a privacy-enabled service
C Build an solid business plan
1 Raise awareness and educate your commercial channels
2 Evaluate the aggregator’s distribution channels
3 Build a customer-centric model
a
model A: selling insurance first
b
model B: selling the device first
4 Accelerate your time-to-market
5 Communicate the benefits of a behaviour-based programme
a
In the consumer market
b
Transferring experience from fleet world to consumer market
6 Leverage telematics data on the existing book
a
Improving standard customers’ rating
b
Improving standard customers’ pricing
7 Use telematics-based pricing to reduce risks
a
Capitalise on “loss aversion”
b
Incentivise behaviours that are the most likely to change
D Make “Big Data” work for you
1 Extract value from data, truth and context
a
A better understanding of reality
b
A large amount of highly diverse data
c
Transforming raw data into meaningful information
d
Understanding accident data
2 The challenges of big data
a
Reducing data exchanges: the drivers
b
Building a privacy-enabled PHYD service
c
Making sense of temporarily available personal data
d
The security implications of insurance telematics
3 Driving behaviour
a
Datasets
b
New datasets (eg lane changes, seatbelt fastened, etc.)
c
Real life test of devices
3 Data to the people
a
A sense of control
b
For a fleet, data goes wider than insurance
c
If the user owns the data, why isn’t it portable?
4 Will data become a barrier to entry?
E Put telematics at the centre of your claims process
1 Factors affecting the motor claims market
a
General trends
b
Trends in accidents and casualties
c
The evolution of Fraud in motor insurance
d
The end of Personal Injury (PI) referral fees?
e
acceptance and geographies
f
The new car evolution
2
The effect of telematics on claims
a
The 3 ground rules
b
Before: predictive modelling
c
FNOL detection and reporting
d
After: reconstruction and claim’s services
e
Accident management and services
3
How telematics reduces the cost of claims management
a
Fast and automatic First Notification Of Loss (FNOL) saves lives
b
It also saves money
c
Avoid litigation
d
Benefit from accident reconstruction
e
Effective claims handling is also a marketing tool
4
The case for telematics in the claims workflow
a
Why claims managers are not yet using telematics data
b
Data requirements from the claims departments
c
Yet there are plenty of examples demonstrating actual claims reductions
d
Integrating telematics into the claims process
5
The necessary steps required to use telematics in claims
a
getting the right information
b
partners and the changing value chain
c
choosing technical solution
d
Finding potential new claims product strategies
e
The new claims workflow
Section IV DISRUPTIONS IN THE INSURANCE STRATEGIC LANDSCAPE
A Overview of the UBI ecosystem
1 The insurance telematics value chain
2 The global telematics battlefield
a
How big is the opportunity?
b
Which players are interested?
3 Flows between players
4 A changing value chain
5 Movements in the telematics industry
a
A rapid industry transformation
b
TSPs’ survival strategies
c
Impact on the supply to the insurance market
d
Impact on the demand for telematics services
e
Automobile clubs
B The impact of autonomous functions on insurance
1 Levels of driving automation
2 Premium reduction
3 Expected timeline
4 Implications for auto insurers
5 Response strategy
Section V THE 5 CORE MODELS AND THEIR VALUE PROPOSITION
A Opportunities from working with black boxes and the OBD II dongle
1 UBI propositions based on the black box
2 Introduction to OBD technology
3 Available data from the OBD port
a
Sensor live value
b
Generated DTCs
4 Telematics opportunities from OBD data outside UBI
a
PAYD in the leasing sector
b
Remote diagnostics & repair
c
Digital roadside assistance
d
Eco-driving
5 Using the OBD dongle in a UBI proposition
a
OBD dongles are becoming the leading platform for UBI, for now
b
The OBD dongle installation
6 Technical & safety risks and limitations of OBD technology
a
Potential safety risks on the vehicle network
b
How to develop a low risk, highly stable approach to connecting to the OBD
c
Consequences on the OEM warranty
7 Consumer dongle: the secondary UBI distribution models
B Can smartphones democratise UBI?
1 Smartphones are vectors of innovation
a
Smartphones technical characteristics are more advanced than black boxes
b
Smartphones bring numerous benefits to insurance companies
2 Overview of mobile UBI models
a
The growth of smartphone based activity
b
The diversity of business models and value propositions
3 Making the smartphone a viable technology alternative
a
Addressing the key operational challenges
b
Ensure the validity of the risk profile
c
How future technology improvements will minimise operational issues
4 How to launch a successful smartphone UBI programme
a
Design your overall strategy
b
Choose a model to fit your goals
c
Implement the right building blocks
d
Avoid operational hurdles
5 Smartphones have become a valid alternative
C The business case for oem-led UBI
1 The growing penetration of OEM connected services
a
New cars are becoming increasingly connected
b
OnStar showed the way
c
All OEMs have embraced connectivity
2 The growing interest of OEMs in UBI
3 The 4 distribution model
4 Today’s OEM challenges
5 Competition issues
a
The impact of Google, Apple and MirrorLink
D Opportunities in the vehicle leasing and commercial segments
a
Usage-based Insurance in the leasing sector
b
Key benefits of UBI for the leasing and rental players
c
Building an effective commercial vehicle insurance telematics offering
E Building an effective commercial vehicle insurance telematics offering
Section VI BUILDING THE TECHNOLOGY SOLUTION
A Defining your technology strategy
1 Selecting the technology
a
The On-Board Unit (OBU)
b
The wireless communication channel
2 Defining a purchasing strategy
a
Why a telematics solution needs to be carefully prepared
b
How to approach the telematics supply market
c
The right organisational structure
3 The key selection criteria
4 The future integration of telematics into the IT system
a
The end of statistical risk
b
The implication for the insurer’s IT system
B Selecting your technology supplier(s)
1 The landscape of suppliers
2 Our evaluation of the suppliers
a
The major players
b
Our ranking of suppliers / update
C Solving the key supply issues
1 How important is the hardware?
2 What is the winning hardware combination?
3 What are the new differentiating features?
4 What are the specific supply issues for commercial insurers?
Section VII QUANTIFICATION OF THE INSURANCE TELEMATICS MARKET POTENTIAL
A Maturity analysis per region
1 Attractiveness of European markets to telematics
2 Attractiveness of other markets to telematics
3 The changing face of insurance telematics
B The business case for mass implementation
1 The typical business case for an insurer
a
Number of policyholders
b
Gross premium earned
c
Claim costs
d
Operating expenses
e
Profitability
2 Country operator business case studies
a
Italy
b
The UK
c
France
d
Germany
e
US
f
South Africa (or Russia)
C Market prevision for the personal lines
1 Current market size
2 Expected growth
a
Our methodology
b
Global predictions
c
Which markets will take off?
d
Which technology and channel will dominate?
3 The importance of Value Added Services
D Market prevision for the commercial lines
1 Current market size
2 Expected growth
a
Worldwide
b
North America
c
Europe
E Estimation of the Insurers revenues
1 Worldwide
2 North America
3 Europe
4 Asia
F Estimation of the Service Providers revenues
G Estimation of the Telematics Technology revenues
H Estimation of the Mobile Operators revenues
Section VIII CONCLUSIONS AND RECOMMENDATIONS
A Telematics is becoming the main stream
B The 7 plagues of auto insurance
C Telematics will uber-ise the auto insurance industry
D Smart home insurance on the horizon
E From UBI to FBI: health & life insurance telematics
F What could Google do?
G Answering the key trends and questions
H Recommendations to insurers
I Recommendations to governments and regulators
J Recommendations to telematics & analytics providers
K Recommendation to automotive OEMs and suppliers
L Recommendations to mobile operators