Telematics uses data collected from devices in vehicles to provide usage-based insurance where premiums are aligned with actual driving behaviors, allowing insurers to better assess risks and provide incentives to drivers; telematics is expected to significantly grow through 2018 with increasing adoption of connected cars and usage of smartphones for telematics applications; telematics offers benefits like reducing fraud, attracting low-risk drivers, and encouraging safer driving while also presenting challenges for insurers around accurate data collection and analysis.

1. INSURANCE
INDUSTRY TRENDS
#4 TELEMATICS

2. 1. Big data & analytics
2. Mobility
3. Cloud computing
4. Telematics/IoT
What’s'hot'in'insurance'

3. Telematics explained
Telematics use cases
Telematics drivers
Deploying cloud computing in insurance
What can be done by using vehicle OBD?
Smartphone applications for telematics &
challenges
Telematics'in'insurance

4. Telematics'explained
Making insurance fun
through gamification -
provide incentives for
behaviour that reduces
loss
Vehicles can create
terabytes of data
in one hour
Data velocity – insurance
companies have to deal
with the real time
consumption of data from
millionsof connected cars
The first UBI programs began to surface in the U.S. about a
decade ago,when Progressive Insurance Company and
General Motors Assurance Company (GMAC) began to
offer mileage-linked discounts through combined GPS
technology and cellular systems that tracked miles driven. T
85,5 million
expected telematics
subscriber base by 2018
80%
Expected global sales
growth of insurance
telematics products by
2018
Usage-Based Insurance (UBI) is a
recent innovation by auto
insurers that aligns driving
behaviors with premium rates for
auto insurance.
Mandatory use of telematics in vehicles, enforced by various governments, is expected to increase
the penetration of insurance telematics by 2018. Insurers already offer telematics based
value added services bundled with other insurance services to differentiate
Emergency
services,
product
innovation

5. Telematics'use'cases
Feedback on
how to drive
safer
Capture real-time
intelligence about an
accident situation through
mobile devices and mobile
applications
Automated first notice of loss – notify
emergency services, car rental, or
replacement vehicles and fleet
Automated notice of loss
– Report incident, begin
claims process and
estimate severity
Auto Insurance pricing based on
driver behavior
Geo fencing – alerting
customers to road
hazards by analyzing
data from nearby
vehicles; parental alerts
Embedded vehicles –
embedded applications that
improve the driving
experience
Enables a service oriented business models and
applicationsthat give access to new customers
and markets & increase customer loyalty and
retention
Pay as you
drive
Locating lost or
stolen cars
Roadside assistance
or claim
notifications in case
of accident
“The genie is out of the bottle. The industry as a whole is not likely to go back to relying only on its traditional
methods of assessing auto risks”

6. Telematics'drivers
How open are drivers to having their behavior monitored?
Percentage of those who would allow driving to be tracked via mobile device

7. Telematics'drivers
How much do UBI policy holders expect to save on insurance?
Size of discount required to allow driving behavior to be monitored

8. Telematics'drivers
How open are customers to telematics?
Percentage of those who would allow monitorization based on potential for
premium discount (by age)

9. Changes'in'the'insurance'industry

10. What'can'be'done'by'using'vehicle'OBD?
• OBD: On-Board Diagnostics gives access to the status of various vehicle sub-systems
• OBD was originally designed to reduce emissions by monitoring performance of
major components
• Modern OBD implementations use standardized communication port and a set of
and a set of diagnostic trouble codes that provide real time data
Ptolemus Consulting

11. Telematics'smartphone'applications
Monthly fees are hard to implement,therefore
automakers consider the hybrid mode
interesting
Capture real-time intelligence about an accident
situation through mobile devicesand mobile
applications
18.7 million units
North American market for navigation
systems by 2016 (Frost & Sullivan
“In 2017, we forecast over 20
million connected cars
globally. That's just a drop in
the ocean.” ABI Research
The hybrid phone/embedded solution
is a more desirable means of
delivering UBI services
Using the phone for connectivity—
perhapsconnecting to an in-car screen
for display—isthe model that will
continue to gain traction.
"Quite possibly,mapson your phone will be more
up-to-date than a mapstored on an SD card,” John
Canali
36,1 million by 2016
the telematics service subscribers installed base
(including OnStar, SYNC, BlueLink, UConnect, etc) in
North America

12. Telematics'Smartphone'applications
MORE TH>N application tracks2information2about2the2driver2automatically,2using2what2it2calls2
“Autostart Technology”2to2detect2when2a2person2is2driving,2taking2into2consideration2speed2and2general2
driving2habits2and2using2the2phone’s2onboard2GPS2to2track2it.2The2app2gives2the2user2a2score2out2of21002
for2their2driving2&2compare2the2score2with2friends,2to2stimulate2safe2driving2through2gamification
Direct Line Drive Plus goes2for2a2hybrid2telematics2route.2It2utilizes2a2bespoke2tracking2unit2for2picking2
up2all2relevant2metrics2to2figure2out2how2safe2someone’s2driving2is,2but2it2provides2a2smartphone2
application2for2analytics2and2feedback. It2also2keeps2track2of2everything2from2speed,2braking,2
acceleration2and2miles2driven,2live2journey2map.2For2safe2driving2Direct2Line2offers2discounts
Admiral Appdriver – smartphone2exclusive2app.2They2encourages2everybody2 (not2only2customers)2to2
download2the2app.2If2users2drive2up2to22502miles2with2the2app2running2and2achieve2a2driver2score2that2is2
the2same2of2better2than2the2top210%2of2safest2Admiral2drivers,2users2will2be2given2a2discount2code2that2
when2they2sign2up2for2a2new2policy2entitles2them2to225%2off2right2away. Drivers2can2look2up2information2
about2their2habits2on2the2app2itself and2those2that2like2competing2can2win2badges2and2awards2
Telematics S an2application2built2for2the2fleet2managers2that2don’t2want2to2invest2in2bespoke2hardware2
tracking2solutions,2not2to2help2people2improve2their2driving2habits.2The2Man2Group2application2gives2
basic2fleet2tracking2capabilities2at2HQ2– for2drivers2that2have2the2app2on2their2phones.2When2set2up,2
managers2can2look2at2a2live2map2of2vehicle2locations,2as2well2as2profiles2for2each2of2the2drivers,2giving2
them2a2heads2up2if2excessive2speeding2has2taken2place,2or2if2a2particular2employee2has2quite2an2
aggressive2driving2style

13. Smartphone'&'telematics'@ challenges
In vehicle identification without using Electronic Control Unit Interaction. Some
luxury cars enable provide connection to OnBoard diagnosticsand reporting
systems via Bluetooth – can’t expect this from smartphone users
Activation at driving –smartphone needs to
be on active/running phase
Detecting accidents – smartphone needs to be
connected to OBD port to detect
acceleration/deceleration, airbag deployment &
communicate with emergency systems
Hard to prevent false alarms – eg: same effect as vehicle accident can be
perceived as result of phone accidentally being droped

14. BENEFITS:
• minimizes2fraudulent2
claims2
• Attracts2and2retains2
lowSrisk2drivers2with2
lower2cost2incentives,2
increasing2user2base2
• Encourages2highSrisk2
drivers2to2change2their2
driving2habits
• Provides2customers2
with2online2portalS to2
study2and2improve2
their2driving2skills2
Use'case
A telematics-driven Big Data (Cloudera)
• Auto2insurer2uses2telematics2to2gather,2store,2analyze2data2in2realStime2from2devices2installed2on2
client2vehicles;2it2adjusts2rates2and2deductibles2based2on2each2individual’s2driving2patterns2&2
creates2predictions2of2a2customer’s2likelihood2of2involvement2in2collisions2or2other2claimsSrelated2
events

15. • Cloud Computing for Insurance, Inside the drive toward new business
model, IBM
• Telematics in the insurance industry, deloitte
http://www.slideshare.net/LudovicP/deloitte-telematics-
intheinsuranceindustryvfinal?qid=89fb2db7-b8b9-4e48-bd1e-
e4177c5cedba&v=qf1&b=&from_search=3
• Telematics the game changer – reinventing auto insurance AT kearney
analysis
• Intel and cloudera use analytics to personalize auto insurance coverage
– use case, big data enablement – automotive, telematics based
• Telematics in auto insurance – tcs whitepaper
• The role of obd in usage based insurance, PTOLEMUS CONSULTING
• http://www.telematics.com/top-telematics-smartphone-apps/
Resources

16. CONSOLIDATED OUTSOURCING
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