More Related Content Similar to Ims ibc presentation final - feburary 12, 2013 Similar to Ims ibc presentation final - feburary 12, 2013 (20) More from Blair Currie (6) Ims ibc presentation final - feburary 12, 20131. Insurance is more
than a snapshot.
IBC Presentation – UBI 2.0
February 12, 2013
Intelligent Mechatronic Systems (IMS) © Confidential
2. Purpose
• This presents IMS’
Point of view on how
Canadian insurance
carriers can succeed with
Usage based insurance
(UBI).
2
Intelligent Mechatronic Systems (IMS)© . 2013
3. Reference: Isaac Newton (1643-1727)
• “If I see farther it’s
because I am
standing on the
shoulders of giants”
– Learn from US & UK
– Leapfrog existing
business models
Intelligent Mechatronic Systems (IMS)© . 2013
4. UBI is evolving
• UBI 1.0 • UBI 2.0
– Value for insurance – Value for insurance carriers,
companies only consumers & partners
– Linked to pricing – Linked to pricing & CRM
– Related only to auto – Connected car ecosystem
insurance eco-system – Technology becomes
– Technology plugged into distributed – plugged-in,
OBDII in US/mobile in UK brought-in, built-in &
beamed-in
– Focus on cost – Focus on profitability over
time
– Communications only from – Two-way In-vehicle
car to back-end communications developing
Intelligent Mechatronic Systems (IMS)© . 2013
5. UBI 1.0
• Key players
– Insurance Carriers
– Telematics Service
Providers (TSP’s)
– Wireless Carriers
– Analytics Partners
Intelligent Mechatronic Systems (IMS) © . 2013
6. UBI 2.0: sophisticated ecosystem
Content
provider
Business
Value Process
Added Consultants
Service
Auto
dealers
Analysts Auto
OEMs
Device
players
Intelligent Mechatronic Systems (IMS)© . 2013
7. US barriers to growth
Making the economics
work
13%
Customer adoption
15%
43%
Management support
30% Understanding the data
Source: Survey of 400 Telematics Update contacts. August 2012.
Intelligent Mechatronic Systems (IMS)© . 2013
8. UBI value chain
Intelligence
Analytics
Data
Devices & Deployment
(End-to-end solution)
Business Foundation
(Market Experience, Business Model and
Adoption Programs)
Intelligent Mechatronic Systems (IMS)© . 2013
9. Business model is #1 barrier (43%)
Intelligence
Analytics
Data
Devices & Deployment
(End-to-end solution)
Business Foundation
(Market Experience, Business Model and
Adoption Programs)
Intelligent Mechatronic Systems (IMS)© . 2013
10. Business model today – B2B2C
(Data is used to set rates)
Telematics
Te Services Insurance Carrier Policyholders
Provider (B) (C)
(B)
Intelligent Mechatronic Systems (IMS) © . 2013
11. Business model tomorrow – B2B2C
(Consumers pay for VAS)
Telematics
Te Services Insurance Carrier Policyholders
Provider (B) (C)
(B)
Value added services
Intelligent Mechatronic Systems (IMS) © . 2013
13. UBI business case
Premium $ Distribution Reduce Claims
100%
90%
80%
Increase # of Good drivers
Net Margin
(4%)
70%
60% Taxes (2%) Increase Value of Premiums
50%
40%
Op Expenses
30% (24%)
20%
Claims (70%)
10%
0%
USA Today Poll
Intelligent Mechatronic Systems (IMS) © . 2013
14. UBI: total cost of ownership
Dedicated OBUs Alternate Models
• Telematics as a Service
• In 2013: $75 device is in sight • Lease
• BYOD
Operating Expenses
(Monthly)
• Wireless charges
• Data Collection & Storage
• Device Management
• Analytics & Visualization
• Customer Care
Intelligent Mechatronic Systems (IMS)© . 2013
15. Adoption is #2 barrier (30%)
Intelligence
Analytics
Data
Devices & Deployment
(End-to-end solution)
Business Foundation
(Market Experience, Business Model and
Adoption Programs)
Intelligent Mechatronic Systems (IMS)© . 2013
16. Adoption: driven by discounts
2011: What Discount
• US discussion focused Would It Take To
Participate?
on Price
Want At Least
• Price story favours price 20% Discount to 47%
players Participate
– Progressive Would Participate
For Between 11- 39%
– Geiko (BH) 20% Discount
• Are discounts the only Would Participate
13%
For 10% Discount
proposition?
• What if discounts fail? 0% 20% 40% 60% 80%
Intelligent Mechatronic Systems (IMS) © . 2013
17. Strategy & tactics for adoption
• Strategy
– Price is key rational
consideration
– Consider other rational
drivers e.g., Value added
services
– Build emotional drivers
• Tactics
– Programs to enhance
adoption
Intelligent Mechatronic Systems (IMS) © . 2013
18. Adoption option #1: IMS Chronicle
• Broaden the dialogue
beyond price
• Start a CRM system
• Driver coaching & tips
• Can be used to involve
3rd parties
– Brokers
– Advertisers
Intelligent Mechatronic Systems (IMS) © . 2013
20. Adoption option #3: start with teens or
mature drivers
• Co-op coaching program
• Insurance carrier
• Parents
• Young Drivers
• Stand-along product or UBI
extension
• Key market differentiator
• Helps lifetime family coverage
• Saves lives!
Intelligent Mechatronic Systems (IMS) © . 2013
21. Option #3 cont’d.: Coaching tips & alerts
for parents & young drivers
Behavior-specific Coaching Tips and Alerts will be provided to Young
Drivers (and their Parents) based on their driving style
Intelligent Mechatronic Systems (IMS) © . 2013 21
22. Policyholder adoption tools
• Adoption requires effort from the Insurance carrier
broker and TSP to ensure full enrollment
• “Carrots” and “sticks”
22
Intelligent Mechatronic Systems (IMS) © . 2013
23. Devices & deployment
Intelligence
Analytics
Data
Devices & Deployment
(End-to-end solution)
Business Foundation
(Market Experience, Business Model and
Adoption Programs)
Intelligent Mechatronic Systems (IMS)© . 2013
24. UBI end-to-end solution
Research & Fully Managed
Development IT Infrastructure
Design &
Systems Integration
Manufacturing
Intelligent Apps & Logistics
Web Portals
Customer Care &
Analytics, visualization Ongoing program
& Intelligence support
24
Intelligent Mechatronic Systems (IMS)© . 2013
25. IMS turnkey solution
• Turnkey: complete end-to-
end solution
• Scalable: IMS platform is
designed to scale
• Customizable: All
programs can be
customized through IMS
Professional Services
• Proven: IMS has UBI
experience with 8 of the
top 25 US Insurance
Companies
25
Intelligent Mechatronic Systems (IMS)© . 2013
26. Device options
OBDII Port options
•Device selection based on
Program/data requirements
• Built-to-order designs
GSM / GPRS
HSPA / WCDMA and CDMA. Professionally installed
Bluetooth and Wi-Fi
options
Intelligent Mechatronic Systems (IMS)© . 2013
27. UBI 2.0 vs. 1.0 devices
• More powerful
• More versatile
– Infotainment enhanced
– All vehicle types
– More ports
– Able to add value added
services
• More connected
– GSM/CDMA
– Bluetooth/RFID/Wi-Fi
• More reasonably priced
Intelligent Mechatronic Systems (IMS)© . 2013
28. IMS mobile options
1. Mobile Portal
– Mobile option for PC-based portal
– Enables real-time, mobile access to driving feedback
2. Standalone UBI app
– Fast & economical way to start UBI program
– Captures a base level of data, utilizing a
smartphone gateway
3. Connected UBI app
– Providing value-added Premium Services
to customers
– Offers new revenue streams
28
29. Fulfillment & logistics
• Forward & reverse logistics
• Re-use & refurbishment
programs
• Numerous courier
companies
• Currently process shipments
within 24 hours (excl.
holidays and weekends)
• Real time inventory tracking
29
Intelligent Mechatronic Systems (IMS)© . 2013
30. IT infrastructure & data hosting
• High availability, redundant &
scalable
• Fully virtualized “cloud”
environment
• Real time monitoring
• Configurable data retention
and warehousing
• ISO 27000 & ITIL compliant
30
Intelligent Mechatronic Systems (IMS)© . 2013
31. Account management
• UBI is a relationship not
a transaction
• Requires program
management &
partnership
– Insurance carrier
– IMS
• Quality of service
depends largely on
account managers
Intelligent Mechatronic Systems (IMS)© . 2013
32. Customer care
• Service quality relies on
excellent care
• Tier 1 support usually
handled by insurance
carriers
• Tier 2 & 3 support
outsourced to IMS
• Regular business hours
– M to F: 8-9 ET
– Sat.: 10-6 ET
– Sun.: 10-4 ET
Intelligent Mechatronic Systems (IMS)© . 2013
33. High level project plan
Mth. 1 Mth. 2 Mth. 3 Mth. 4 Mth. 5 Mth. 6 Mth.7
Agreements MSA/ X X X
SOW
Ins. Carrier Req. Reqs. Customiz Testing UAT
Integration review review ation
Hardware P.O. X X Delivery
Acquisition
Process X X X
mapping
Infrastructure X X
setup
Joint program Trials
launch
Roll-out Pilot
Launch
Intelligent Mechatronic Systems (IMS)© . 2013
34. Data, analytics & intelligence
Intelligence
Analytics
Data
Devices & Deployment
(End-to-end solution)
Business Foundation
(Market Experience, Business Model and
Adoption Programs)
Intelligent Mechatronic Systems (IMS)© . 2013
35. IMS transforms data into Intelligence
2.) Context-
relevant
representation
- Charts
3.) Intelligent
analysis and
1.) Smart data visualization
acquisition -Trends
-Scores
4.) Traveler-
centric feedback
-Portals
-In vehicle
Intelligent Mechatronic Systems (IMS)© . 2013
39. Data quality – key IMS differentiator
Actual Driving Data
(Toronto)
Yellow = Raw GPS
Red = IMS Derived Path
40. Share intelligence with policyholders
• Non-actuarial scoring
presents a new way to
assess risk
• Also can start a Customer
Relationship Mgt.
program to bring users
into the conversation
• Empower drivers with
scoring, coaching & tips
• Employ PC and mobile
portals
Intelligent Mechatronic Systems (IMS)© . 2013
41. Summary: UBI Is Evolving Rapidly
• UBI 1.0 • UBI 2.0
– Value for insurance – Value for insurance
companies only companies, consumers
– Linked to pricing & sub-lease to partners
– Related only to auto – Linked to pricing & CRM
insurance eco-system – Related to connected cars
– Technology is plugged into – Technology becomes
OBDII distributed – plugged-in,
– Focus on cost brought-in & built-in
– Communications only on – Focus on profitability
back-end – In-vehicle communications
starting
Intelligent Mechatronic Systems (IMS)© . 2013
42. UBI 2.0: sophisticated ecosystem
Content
provider
Business
Value Process
Added Consultants
Service
Auto
dealers
Analysts Auto
OEMs
Device
players
Intelligent Mechatronic Systems (IMS)© . 2013
43. UBI 2.0 is disruptive
• UBI 2.0 disrupts the
auto insurance Industry
– Price model
– CRM models
• UBI 2.0 will disrupt the
automotive industry by
being the first mass
market to connect cars
Intelligent Mechatronic Systems (IMS)© . 2013
44. IMS Highlights
• Privately held technology company, founded in 1999
• HQ in Waterloo, Ontario with 100+ highly qualified employees
• Strong links with University of Waterloo: Joint research projects
• Over 130 connected vehicle patents for informatics, driver analytics & vehicle safety
• ISO 9001, ISO 14000 Certified, ISO 27001 & ITIL Compliant
• IMS enables Usage-based insurance (UBI) with 8 of the top 25 US carriers
• Member of ITS America, ITS Canada, ngConnect, & APMA Connected Vehicle Group
• Recipient of numerous international awards
Intelligent Mechatronic Systems (IMS) © . 2013
45. IMS is a unique blend of
Telematics & Infotainment
45
Intelligent Mechatronic Systems (IMS) © . 2013
46. For more information on IMS
• Blair Currie • IMS Boot Camp
VP Marketing ICTC 2013 – March 18th
Intelligent Mechatronic Sheraton Centre, Toronto
Systems (IMS)
435 King Street North
Waterloo, Ontario
Tel 519 745 8887 x. 4310
bcurrie@intellimec.com
www.intellimec.com
Intelligent Mechatronic Systems (IMS)© . 2013