KITARM Insurance Telematics Solution Kitarm technology Co.,Ltd

Trend of Insurance Industries Content Company Introduction Telematics Introduction Kitarm Insurance Solution Insurance Telematcis

Company Introduction

Kitarm technology Co., Ltd is the leading OBD hardware manufacturer that integrates research, design, manufacturing, sales and service. Our customers mainly include insurance companies, TSP, carriers, vehicle manufacturers, logistics companies and fleet operators. Kitarm also provide total solution including OBD terminal, smart phone APP, cloud server platform to customers. Company Introduction

Telematics Introduction

Telematics, the wireless technology that delivers safety service and vehicle information, presents auto insurers with a significant opportunity to create new value. By using the technology’s ability to transmit precise data on vehicle location and driving behavior in near real time, insurers can adjust pricing models, capture a greater share of low-risk drivers, cut the costs of managing claims, and enhance the overall consumer experience.

Vehicle communication system penetration rate was 7.9% in 2009 and will reach to 41% in pre-installed penetration rate is high in North American E-call will promote pre-install penetration rate in EU. Telematics penetration rate will grow rapidly in Brazil and Mexico because of new policies. Pre-installed and new car penetrationAfter-Installed penetration ABI Telematics Penetration Analysis in Auto Market

Insurance Telematics

Traditionally, the insurance premium is determined by the insurance statistics, such as vehicle type. But it doesn’t Illustrate who you drive, when you drive, where you drive and how you drive. In 2001, StateFarm, who is the largest vehicle insurance company in North America cooperated with Hughes TSP, so that the first insurance telematics had been accepted by people around the world. So, no matter the how far the driving mileage is and how driving behavior is, the vehicle insurance fee is almost the same 。

Insurance Telematics means that insurance industries started to solve 3W1H(who, when, where, how ) problems. They will provide more benefits for users according to the actual vehicles data and driving data. whowhen howwhere Telematics and Insurance Industries

Location Driving time 驾驶行为 Mileage SpeedRoute Driving behavior Telematics and data collection How to use the data? Discount ： according to the driving behavior score, the safety drivers will get a discount. Claim ： collect vehicle speed, driving direction and other data by using telematics terminal as evidence for claim. Information feedback ： feedback drivers data and improve driving safety. Telematics and Insurance Industries

Estimated global insurance telematics market 1.USA Many insurance companies have operated insurance telematics service in the USA. Progress insurance company has business in 42 states. Reference ：《 Global Insurance Telematics Market Report 》 by Rulf Hug ， Trajecotry Group LLC 2. Europe The research firm reports the number of UBI users in Europe will grow from 1.5 million in 2010 to 44 million in ( ABI Research)

4. ABI Research says in the future, the growth of UBI will be increasingly driven by smartphones wirelessly connecting to the OBD (onboard diagnostics) bus via Bluetooth adapters 3. China Kitarm has provided insurance telematics solution for PICC, Ping An Insurance and Life Insurance. The insurance telemaitcs services have been operated in 8 cities including Shanghai, Shenzhen, Wuhan, Xi’an and Chongqing. Reference ：《 Global Telematics Market Report 》 by Rulf Hug ， Trajecotry Group LLC

 Telematics in China will grow significantly supported by the government economic plan around the “Internet of Things” with a focus on the "Connected Car”  Potentially more than 10 million telematics users by 2015 。  China shipped over 1 billion mobile phones in 2011 of which only 5% are smartphones (US: 60% smartphone penetration rate).  In 2014, the number of smartphone in China will reach to about 30 million. Telematics UsersSmartphone Reference: Strategy Analytics

Currently, telematics insurance are mainly in the U.S. and European markets.

PAYD Mode (Pay As You Drive ） Progressive Insurance has saved about insurance fee 7 million USD based on PAYD mode. Users can save 150 USD at least every year. Progressive Insurance divides users into more than 400 groups based on driving habit. The first 75 groups users will get a discount due to the good driving habit.

State Farm Insurance is a group of insurance and financial services companies in the United States. The device captures the following insurance driving characteristics:  Miles driven  Acceleration  Braking  Turns (right and left turns)  Speeds 80 mph and over  Time of day the vehicle is driven

The free app uses the iPhone's sensors to measure your acceleration, cornering and braking habits, then calculates a score based on how you've done. If you are a good driver, you will have a discount for insurance fee.

Kitarm Insurance Telematics Solution

KITARM Insurance Telematics Solution Introduction KITARM is one of the leading insurance telematics service provider in China. Our goal is providing the most professional insurance telematics solution & become the top brand in insurance telematics. KITARM provide a total solution including OBD terminal, smart phone APP and cloud platform to insurance companies.

KITARM Insurance Telematics Solution Data exchange Telematics terminal Call center SmartPhone APP Platform Achieve 3 ways information exchange: People and vehicles, vehicles and vehicles, people and call center. Target: Safe & Save.

Telematics terminal Small size Plug and play, no installation cost Internal GPS and communication antennas Built-in acceleration sensor Support OBD and CANBUS protocol, compatible with 97% vehicle types Low power consumption Product Series 12V 24V CSM CDMA

Plug and Play Function Application  1. Vehicle data collection ： Mileage, fuel, speed, Time, harsh brake, harsh turning, over speeding  2. Vehicle real-time tracking Vehicle positioning, History track playback  3. Start and stop protection  4. E-call and B-call

Drivers can check vehicle driving data by smartphone APP

Traditional insurance rates E-Drive insurance rate Driving mileage Driving location Driving behavior Driver information Vehicle type Provide real-time driving data to insurance companies. Insurance companies will set personalized insurance policies to such as PAYD (Pay As You Drive), PHYD (Pay How You Drive) and MHYD(Manage How You Drive)

With Telematics technology it is possible to assess and price risk more accurately. It is possible to calculate the different value of insurance premium. So that the insurance company may set a personalized car insurance for different drivers.

Age ： 28 years old occupation ： Office lady Vehicle type ： Private vehicle Driving habit ： Safety, low mileage

Age ： 25 years old occupation ： Self-employed Vehicle type ： Private vehicle Driving habit ： Not so good, sometime over speeding

Age ： 45 years old occupation ： logistic driver Vehicle type ： commercial vehicle Driving habit ： High mileage, nighttime driving, over speeding, dangerous

Low mileage means low possibility of accident, so that discount. Insurance Company Pay-As-You-Go insurance program Pay-As-You-Go insurance program Pay-How-You-Go insurance program Pay-How-You-Go insurance program High mileage, nighttime driving, so that he has to pay the highest insurance fee. Advantages …… Insurance company innovative new service model Because of over speed sometimes, So that he has to pay a higher insurance fee than that office lady.

KITARM telematics service zone Telematics technologies + Third-party resources integration Member Service Community 1. Implement Membership system 2. Enjoy telematics technology 3. Enjoy KITARM TSP VIP services “Install a Turn-key solution smart service platform base on KITARM Telematics service technologies

Optimal driving behavior Maintenance Solomo community Driving Secretary Serivice Management Insurance customization Start protectionFault code query E-MATCH preferential One-key report B-call Auto insurance reminder Trajectory query Maintenance remind Services booking Surrounding query Illegal agent Auto insurance customization Mileage and fuel consumption Maintenance consultant Friends sharing Voice navigation Annual review agent reparation first Remind improper driving behavior Maintenance booking Servcices booking KITARM TSP 6 kinds of main Services

Trends of Insurance Industries

Enhance relationship between drivers and vehicle insurance companies Safety Reduce loss More discount and services Optimal driving behavior Increase profit Increase persistency rate Vehicle owner Insurance company Safe Save e-Drive Telematics Service

Insurance company value First stepSecond stepThird step The drivers buy insurance and then get e-Drive telematics service free. Enhance the relationship between users and insurance companies. Increase insurance profit Analyze driving data, optimal driving behavior and eliminate low quality customs Add services for VIP users Increase Renewing Coverage rate Decrease loss ration Analysis profit

Compensation cost  Vehicle insurance profit =Insurance fee-tax- Operation costs - Compensation cost ，  Net premiums = gross premiums - commission Gross premiums 100% Total insurance fee commission Tax Operation cost Loss or less profit 8%-12% 7% 25-30% 55% Composition ratio How to decrease ？？ Reduce the loss ratio via telematics technologies KITARM TSP

Telematics technology changes vehicle insurance price model Insurance price base on mileage Insurance price base on mileage Insurance price base on safety level Insurance price base on safety level …… Analysis mileage, speed data Analysis driving behavior data …… KITARM Telematics Service Insurance company

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