1. The Future of Motor Insurance Gus Park MD, Motor Insurance Direct Line Group
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)

2. Disclaimer
The views expressed in this presentation are those of the authors, Gus Park, of the paper and not necessarily of the Staple Inn Actuarial Society or Direct Line Group
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)

3. Questions for the audience1.
How big will the UK motor insurance market be in 2040? (% change in £bn premium)
There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers.
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 3

4. What others think…
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)

5. Questions for the audience2.
Will there be more or fewer cars
on the road in 2040?
There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers.
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 5

6. What others think…when they’re being optimistic
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)

7. What others think…
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)

8. Questions for the audience3.
What % of people will own their own car?
There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers.
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 8

9. What others think…
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016)

10. Questions for the audience5.
How much safer do autonomous cars have to be in order to be trusted?
There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers.
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 10

11. Questions for the audience6.
If you could travel to work in a robotaxi, would you?
There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers.
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 11

12. Questions for the audience7.
Will we end up in product liability market?
There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers.
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 12

13. How should an incumbent car insurer respond?
Embrace change and disrupt own market
Pluralistic
Collaborative
Look forward, not backwards
Use brand and distribution
Rethink traditional product structures
There are some very good reasons why the insurance industry – and the motor insurance industry in particular – has not been very good at delighting customers.
Source; Motor Insurance 2.0 (Morgan Stanley and BCG - September 29, 2016) 13

14. Thank you – Questions?