1. Insurance Telematics USA 2013 Winning through Differentiation September 4, 2013

3. Why differentiate? All telematics programs starting to look alike Consumers cant tell the difference Growth is only possible by doing something different – Differentiation – Segmentation

5. Ideas for differentiation Vary the audience Think of past, present and future Work towards your business goals Lots of details

6. Differentiation options Creating an offering – Simple Distance Location Seasonality and rare usage – Complex Behavioral – Psychographic – Demographics – Coaching Contextual knowledge – Weather, traffic

7. Program progression Give yourself the best start possible – Meet your business goals – Prepare yourself for increased competition – Ensure your solution can leverage the future of telematics

8. Be goal oriented Use telematics to surpass your goals – Pricing models – Customer relationships – Driver education and coaching – Increasing risk tolerances – Market penetration

9. Program details Involve as many parts of your organization as possible Dont forget your agents, brokers, member services, etc…

11. Segmentation Personal lines – Broad base – Young drivers – Mature drivers – Non standard Commercial/Profession al Lines – Behaviormatics

12. Young drivers programs Value for insurance carriers – Risky segment Value for parents – Peace of mind Value for teens – Safety and independence

13. Mature drivers programs Value for insurance carriers – Risky segment Value for guardians – Peace of mind Value for elderly – Safety and independence

14. Fleet program Value to the carrier – Method to enhance business Value to the fleet owner & manager – Better understanding of drivers – Immediate cost savings Value to the driver – Education & coaching

15. Multiple segments An insurance carrier can target multiple segments with same platform – e.g., Young Drivers + Usage-Based Insurance

17. Premium services Source: Telematics Update Survey 2012 Value added services help overcome key barriers to UBI growth – Consumer adoption – Business model 15% 12%

18. Consumer Adoption Augment the value of the telematics proposition Start with pricing Go beyond pricing – Connected car services – Rewards & recognition

19. Business Model Premium services can reduce the insurance carriers costs – Policyholders will pay for value in their connected vehicles – Third parties will pay to lease part of the OBD-II port

20. Telematics-Enhanced Roadside Assistance Vehicle Health Monitoring & Reporting Automatic Crash Notification Voice Powered In-Car Infotainment Connected Car services are going mainstream Value of Premium Services

21. Think beyond data Leverage Connected Car technology as CRM Tool Increase revenue potential and reduce program costs Control high risk behavior – i.e. Texting & Driving Make adoption of UBI easier

23. On-going differentiation Differentiation is not a single step, it is achieved in an ongoing process Continuous innovation – Data acquisition – Analytics – Connectivity – UBI within the connected vehicle ecosystem

24. Differentiating Elements: A Driver-Centric Perspective Smart Data Acquisition Context-Relevant Representation Advanced Analysis and Visualization Advanced Traveler-Centric Feedback Loops

25. Smart Data Acquisition: Relevant In-Vehicle Enablers For Diverse Needs

26. Data Quality and Context-Relevant Representation

27. Extracting Value with Advanced Analysis and Visualization

28. Frontal impact

29. Algorithms to Understand Driving and Driver Behavior Moving beyond harsh braking and acceleration … Toward understanding driver intent

30. Data, Intelligence, and Feedback Data management – Density – Diversity – Frequency – Quality – Longevity – Latency – Privacy – … Data transformation – Insights – Intelligence – Decisions – Actions – … Coffee taste wheel

31. Summary Business objectives, goals, strategies and measures will drive the selection of insurance telematics Differentiation is the key to success – Stand out from the crowd – Provide advantages over the competitors – Develop a roadmap of innovation

32. Conclusion The IMS DriveSync platform provides for all this differentiation www.intellimec.com/IT USA for Presentation and Collateral resources