1. The Business Model Canvas Template Designed for: IoT for Insurers Designed by: Jorge Catalão Date: 12 th October 2015 Version: 1.0

2. Key Partners Insurance industry is generally very conservative. The key partners & suppliers are banks, technology companies and service providers like hospitals, trailers, mediators. IoT Device Manufactures Industry Regulator Adaption of new digital media is taking place, but mostly only in communication flows, not in core processes. Partnership with Microsoft Who are our key partners? Who are our key suppliers? Which key resources are we acquiring from partners? Which key activities do partners perform? Motivations for partnerships optimization and economy reduction of risk and uncertainty Acquisition of particular resources and activities

3. Key Activities Store Management IT Support Marketing Support Gather from IoT Devices Understand Customer behavior and predict initiatives as a Service Technological bundling Reduction of claims and fraud Acquisition of new customers Optimization of customer handling What key activities do our value propositions require? Our distribution channels? Customer relationships? Revenue streams? Categories Production Problem solving Platform/network

4. Value Propositions Customer fidelity Totally mobile convenience Easy to implement with no maintenance Easy to use Predictive information Convenience Home & Health perception of Service  Smart Home Secure Sensors  Apps and Services from Insurers  Dashboards with Predictive information  Mobile Apps Phone  Monitor | Alert | Action  Expert Virtual Advisor (Health & Secure) What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each customer segment? Which customer needs are we satisfying? Characteristics Newness Performance Customization “Getting the job done” Design Brand/status Price Cost reduction Risk reduction Accessibility Convenience/usability

5. Customer Relationships Personal assistance; Self & Automated Services; Innovation & Comfort; Perception of the Customer service; Build a package for Smart Home & Health Insurers should invest in IoT solutions to ensure that they know their customer profiles, and with this, increase or decrease the value of the insured. With these insurance solutions, they could diversify in market portfolio, because they would certainly aware customers for risk. This shift paradigm would certainly change the business model of insurers. What type of relationship does each of our customer segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? Examples Personal assistance Dedicated personal assistance Self-service Automated services Communities Co-creation

6. Customer Segments Owners with Home (Security Risk) Seniors Mass Market Segmented by type (Health or Home) For whom are we creating value? Who are our most important customers? Mass market Niche market Segmented Diversified Multi-sided platform

7. Key Resources High level proposal for following apps / functionalities & IoT Package Sensor Solution Smart Home Showcase (including home sensors if possible) Smart Health Showcase (measure physical condition – Age, size, weight, including health bracelet & App) Customer portal Social media and chat / video connectivity; Touchscreens as tablet devices Intellectual (brand patents) Based on a approval, this solutions can go live in 2 or 3 months; What key resources do our value propositions require? Our distribution channels? Customer relationships? Revenue streams? Types of resources Physical Intellectual (brand patents, copyrights, data) Human Financial

8. Channels Thru Insurance Stores Thru Health Partners Thru Bank Partners Today the stores are not transactional. Normally customers approach them to collect or pay prices. Upselling with bundle products on stores & partners, will increase their profits. Location of Stores, near Shops in major cities, close to shopping areas, should even change the presentation layout with these new offerings; Advertise offer on local radios and portals where the issues regarding health and home (safety and well-being). Partnership with health institutions Partnership with IT Centers (Demotics & Security) Through which channels do our customer segments want to be reached? How are we reaching them now? How are our channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? Channel phases Awareness How do we raise awareness about our company’s products and services? Evaluation How do we help customers evaluate our organization’s value proposition? Purchase How do we allow customers to purchase specific products and services? Delivery How do we deliver a value proposition to customers? After sales How do we provide post-purchase customer support?

9. Cost Structure Fixed Costs – Staff / Building / Utilities – Development of the bundle; Variable Costs – Economics of scale & scope – Targeting – Commissions and bonuses What are the most important costs inherent in our business model? Which key resources are most expensive? Which key activities are most expensive? Is your business more Cost driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value driven (focused on value creation, premium value proposition) Sample characteristics Fixed costs (salaries, rents, utilities) variable costs Economies of scale Economies of scope

10. Revenue Streams Customers are willing to pay a premium according to their activity, health and way of life, i.e., a customer who has an awareness that is responsible with his goods, does not mind investing in a safe with variable premium, since this fits with his lifestyle. As well as a customer who cares about his health, must have a variable premium that rewards him. The way to know this customers and their habits, is having IoT solutions to monitor and predict actions. For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each revenue stream contribute to overall revenues? Types Asset sale Usage fee Subscription fees Lending/renting/leasing Licensing Brokerage fees Advertising Fixed pricing List price Product feature dependent Customer segment dependent Volume dependent Dynamic pricing Negotiation (bargaining) Yield management Real-time-market

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