Here is one of the keynote presentations from the hugely successful Insurance Telematics USA 2010.
During the presentation, two Vice Presidents from A.T. Kearney answer the following questions:
- How will the insurance telematics market evolve in the next 3-5 years?
- What are the implications for insurance companies?
- How should insurance companies position themselves for success in the face of uncertainty?
To view the presentation WITH AUDIO then click here:
http://www.telematicsupdate.com/insurance-telematics/presentations.shtml
11. Advised companies in the US and EU on telematics, from strategy through pilot and launchMike Hales Partner
12. Key Questions How will the insurance telematics market evolve in the next 3-5 years? What are the implications for insurance companies? How should insurance companies position themselves for success in the face of uncertainty?
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14. Small base but rapid growth of UBIActive Safety Potential US market ~55M subscribers From Niche to Mass Market Appeal Based Feedback Customer Value Proposition Based Performance Current US market ~0.5M subscribers Based Usage Based Sources: Berg Insight; Frost & Sullivan; Consumer data from US and EU insurers; Insurance Research Council; A.T. Kearney analysis
25. Embedded device for safety, diagnostics & roadside assistance – extensible for UBI OEMs embedding telematics From premium to mass market vehicles … … From optional to standard feature By 2014, over 20% of US vehicles are likely to have embedded telematics Source: 2009 Townsend report, Department of Transportation, Ward’s, Bureau of Economic Analysis, iSuppli , A.T. Kearney analysis
26. An increasingly robust ecosystem Application & Service Providers Content Providers & Aggregators Access Network Devices Distribution Auto Home Always Connected Consumer Personal Winners and gatekeepers in the new space are yet to be determined
63. Capabilities & IPIP Org Structure Successful Relationship Relationship Governance Performance Management Longer term, need to partner with gatekeepers in the telematics ecosystem
69. Operating costsCosts Revenues ~ Margin: Underwriting revenue offset by Loss Costs Profit per customer + Growth: Customer acquisition + Retention Core growth + Growth: Expanded markets and offerings Unregulated growth
70. Key Messages “Get in the market … and have a longer-term plan”– the market is evolving rapidly, by-standers run the risk of declining profitability and losing market share “Know your customer” – understand how to serve the customer beyond traditional insurance and leverage increased interactions to create value “Enhance your brand” – define your role in the telematics ecosystem, and take steps to differentiate and protect your company “You can’t do it alone” – partnerships are required to get to market quickly, to make multiple bets in the face of uncertainty as well as ensure longer-term success “Make the new economics work” – understand and exploit the economics of telematics to achieve growth while protecting or improving profitability and reduce cost barriers