1. UBI 2.0: Taking it to
the next level
IMS Panel Discussion
Insurance Telematics USA IMS Inc. Proprietary and Confidential
September 5, 2012

2. Purpose
• This presents IMS
thoughts on how to
accelerate the success
of usage-based insurance
in UBI 2.0
2

3. UBI is evolving rapidly
• UBI 1.0 • UBI 2.0
– Value for insurance – Value for insurance firms,
companies consumers & partners
– Linked to pricing – Linked to pricing & CRM
– Related only to auto – Related to connected cars
insurance eco-system – Technology becomes
– Technology plugged into distributed – plugged-in,
OBDII brought-in, built-in &
– Focus on cost beamed-in
– Communications only on – Focus on profitability
back-end – In-vehicle communications
starting

4. Telematics Update Survey
Barriers to growth
13% Making the
economics work
15% Customer
43% adoption
Management
30% support
Understanding the
data
Source: Survey of 400 Telematics Update contacts

5. Value Chain – IMS Model
Intel
Analytics
Analytics
Data
Devices &
Deployment
Business Foundation
(Business Model and Adoption)

6. UBI Business Models
Intel
Analytics
Analytics
Data
Devices &
Deployment
Business Foundation
(Business Model and Adoption

7. Insurance Telematics Business Case
Premium $ Distribution Reduce Claims
100%
90%
80%
Increase # of Policyholders
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

8. Telematics TCO - Trends
Dedicated OBUs Alternate Models
• Telematics as a Service
• In 2013: $75 is in sight • Lease
• BYOD
Operating Expenses
(Monthly)
• Wireless Transport
• Data Collection & Storage
• Device Management
• Analytics & Visualization
• Customer Care

9. UBI Best Practices
Intel
Analytics
Analytics
Data
Devices &
Deployment
Business Foundation
(Business Model and Adoption)

10. Adoption: Largely Driven To Date By
Discounts. Is It The Right Way?
2011: What Discount Would It • Is a discount the most
compelling reason to adopt?
Take To Participate?
• What happens when the
incentives don’t lead to user
Want At Least 20% adoption?
47%
Discount to Participate
• What might these programs
look like tomorrow?
Would Participate For
39%
Between 11-20% Discount
Would Participate For
13%
10% Discount
0% 20% 40% 60% 80%

11. Strategize. Choose Wisely. Treat Kindly.
Adoption as a KPI is key, but don’t
forget about retention!
Find new, compelling reasons to
attract users.
Balance VAS offerings where
appropriate to leverage the desires
of your “best risk” drivers.
Encourage telematics as the only
long term alternative. Be the right
influence on tomorrow’s market.
Watch Your Relationships Grow.

12. Devices & Deployment
Intel
Analytics
Analytics
Data
Devices &
Deployment
Business Foundation
(Business Model and Adoption)

13. UBI 1.0 Deployment
• Early eco-system driven
largely by
– Auto insurance
companies
– Wireless carriers
– Analytics companies
– Telematics service
providers

14. UBI 2.0 Eco-system – The Evolution of Driver Intelligence Premium Services / VAS
 Auto vehicle locator (AVL)
 Managed Services  Roadside assistance
 Vehicle diagnostics
Integrated & Scalable  Traffic alerts / routing
Meaningful Data  Road charging
 Green reports
Personalized Experience  Stolen vehicle recovery
Program Mgmt Logistics & Fulfillment Solutions Communication
 3PL vendor selection
& Support Protocols /
 Forward/Reverse logistics
 SIM provisioning Wireless Carrier
 Training  GSM
 Adoption  Inventory management
 Personalization  CDMA
 Support System & Data Management  WCDMA
 Retention  Enrolment models
 Secure data warehousing  Wi-Fi
Application  System monitoring and scalability  BT
 Data exports and analysis  RFID
 UBI  Administrative reports
 Young driver
 Mature driver
 Fleet Business Intelligence
Systems Integration  Road charging  Data Analytics
 Non-actuarial Scoring
 Integration with enterprise systems
 Driver identification
 Automation with exception handling
 Process engineering
Device Selection and Configuration  Behaviormatics
 Single sign-on  Location tracking: GPS or non-GPS
 Port: OBD or Cigarette
 Voltage: 12V or 24V Data Visualization
 Accelerometer options
 Data collection and transmission intervals  Web or mobile based solutions
 OTA upgradeability  Customized / Branded B2B / B2C portals
 Antenna selection  Driving reports, coaching tips, scoring,
 Multi-network device account and vehicle management
 Panic button
 Feedback channels: web, mobile, email,
SMS, 2-way radio, etc
Vehicle Supportability
 OBD-2 or non OBD-2 support
 Gas , diesel, hybrid, and electric support
 Cars, vans, trucks, heavy duty
 Device agnostic TSPs

15. UBI 2.0 vs. 1.0 Devices
• More powerful
• More versatile
– All vehicle types
– More ports
– Able to add value added
services
• More connected
– GSM/CDMA
– Bluetooth/RFID/Wi-Fi
• More reasonably priced

16. UBI 3.0  Connected Car Eco-system
More Robust
Seamless Scoring – Data
Integration Analytics Partners
Content
Providers = Automotive
Enhanced OEMs
VAS (Built-In
UBI 3.0  devices, etc)
Connected Car
Sophisticated Superior
Mobile Applications Innovation from
Device Mfrs
Policyholder
Personalization

17. Data, Analytics & Intelligence
Intel
Analytics
Analytics
Data
Device &
Deployment
Business Foundation
(Business Model and Adoption)

18. Transforming Data Into Intelligence
Context-Relevant
Representation
Intelligent
Smart Data
Analysis and
Acquisition
Visualization
Advanced
Traveler-Centric
Feedback Loops

19. Smart Data Acquisition for
Insurance Companies
• Extract Maximum Value From Data
– Data is fundamental for understanding
– High quality data drives accurate insights
• Right Data, Right Time?
– Variable frequency data collection
– Metadata & parameters describing
• Precision
• Accuracy
• Relevance

20. Context-Relevant Representation
• Advanced Context-Relevant Algorithms
– Aggressive acceleration
– Hard deceleration
– Rapid cornering
• Relevant Non-GPS Context
– Distance and timing between intersections
– Identification of right turns, left turns, and roundabouts
– Aggressive maneuvers, etc.
• Relevant GPS Context
– Weather
– Road Type
– Regions of interest …

21. Intelligent Analysis and Visualization
• Secure Transfers
– Real-time, Event-Driven, On-Demand
– Optimal Compression
– Bidirectional Communication
• Distributed Intelligence
– Low Latency Interaction
– Accessible Warehouses

22. High Precision Driving & Driver Info

23. 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

24. Employ Device For Uses Beyond UBI

25. 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

26. UBI 1.0 Eco-system Is Relatively Simple
• Based mainly on
– Auto insurance
companies
– Wireless carriers
– Analytics partners
– Telematics service
providers

27. UBI 2.0 Eco-system Is Attracting New
Players
• Automotive
– OEMs
– Dealers
– Service providers
• Software platforms
• Device manufacturers
• Software players
• Content providers
• Others

28. 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

29. For more information on how you
can benefit from IMS’ UBI 2.0
programs
please call Blair Currie at
+1 519 745 8887 or email
at bcurrie@intellimec.com