Insurance Telematics Study The global reference report on Pay As You - PowerPoint PPT Presentation

PTOLEMUS Consulting Group Insurance Telematics Study The global reference report on Pay As You Drive July 2012 - Strictly confidential

PTOLEMUS in PAYD Who we are • The 1 st international strategy consulting firm specialized in telematics, location-based services & mobility • Strategy combined with real industry expertise and from Ptolemy, the operational experience Egyptian savant who built the 1 st map of the • A focus on achieving results for our clients world in the 2 rd century • Close links with the mobility ecosystem - Advisory Board Member of EENA (1) - Member of ERTICO's (2) eSafety Forum and eCall HeERO Observers Group - Close connections to national ITS organisations, ACEA (3) , ASECAP (4) , GSMA (5) , etc. - Speakers at most leading industry events & conferences - Regular contributor to Telematics Update - Steering Committee Member of Mobile Monday (Brussels) (1) European Emergency Number Association (2) ITS Europe (3) Association of European Car Makers (4) European Association of Tolled 2 PTOLEMUS Motorways Operators (5) GSM Association

PTOLEMUS in PAYD PTOLEMUS is the first management consulting firm focused on telematics and geolocation Our consulting services Our fields of expertise Mobile content and social networking Application stores, crowd-sourcing, etc. Strategy Evaluation of Procurement definition investment strategy Navigation & location-based services New market entry, Strategic due Specification of Maps, traffic, fuel prices, speed cameras, weather, parking, business plan diligence, requirements, etc. development, market launch of tenders, board coaching assessment, supplier negotiation and support feasibility studies & selection Usage-based charging PAYD / PHYD insurance, Road User Charging, PAYD car leasing & rental Innovation Telematics & Intelligent Transport Systems Implementation management Business Connected car, tracking, fleet management, eCall, bCall, development Stolen Vehicle Recovery, Car As A Service, connected train, Product & services Project & development, etc. Partnership programme roadmap definition, strategies, management, risk project Positioning / Location enablement response to RFPs, analysis & management & lobbying mitigation strategy launch, patent strategy M2M & connectivity 3 PTOLEMUS

PTOLEMUS in a nutshell We have acquired substantial experience in helping all players in the geo-connected mobility ecosystem Telecom operators OEMs & telematics vendors Content & application providers Telecom infrastructure providers ITS operators • Partners in Brussels, Paris, Munich, Consumer electronics makers Milan and Boston • +50 years of experience in mobile • +100 years of experience in telematics Positioning solution providers Financiers Insurers & assistance providers Montezemolo & Partners 4 PTOLEMUS

Telematics-based insurance Insurers are becoming more mature about PAYD PAYD trials & launches globally PAYD has passed the trial phase • 94 trials worldwide (67 in Europe) USA • 54 commercial launches (40 in UK Europe) Italy • Success stories in multiple France countries , notably Italy (Unipol), South Africa Spain (Mapfre), France (Groupama), Germany the UK (Coverbox), Austria (Uniqa) Ireland and the US (Progressive) Belgium • Overall, we estimate PAYD- Spain equipped vehicles at over 2 million Other (worldwide) 0 5 10 15 20 25 30 5 PTOLEMUS Source: PTOLEMUS

Telematics-based insurance In our view, the time has come for insurance telematics Test-Achats gender ruling European Norwich Union Launch of Commission launches PAYD Gender ruling Insure The Box decides to offer becomes in the UK mandate eCall Toyota & applicable Aioi launch PAYD on Norwich Union Launch of Toyota's G- stops PAYD Towergate Zurich Coverbox by Book programme & Aviva launch launches Fleet Cobra Wunelli PAYD Intelligence The AA and commercial PHYD offer Admiral launch Unipol & insurance PHYD offers Aurora launch Progressive Octo's solution launches MyRate, first NYC & commercial Qualcomm Massachussets Groupama PHYD offer launches investigate launches PAYD / PHYD Moody's Norwich Union PAYD models Amaguiz PAYD solution recommends launches PAYD MAIF & system usage-based trial MACIF launch insurance unsuccessful Renault Progressive ÖSA launch telematics launches renames telematics offer offer Progressive commercial MyRate in Germany pilots insurance PAYD Snapshot TripSense UBI programme Discount program in Minnesotta Unipol trial of Octo's solution Technology Peak of Enlightenment Maturity Disillusionment trigger expectations 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 6 PTOLEMUS Source: PTOLEMUS, based on Gartner's Hype Cycle

Telematics-based insurance Connectivity is changing everything - Numerous players will be tempted to offer PAYD insurance Connected car services Car ¡OEMs Navigation ¡& ¡ search ¡vendors Handset ¡ Telema;cs ¡ vendors service ¡providers Traffic & Resource Social Multimodal other eCall management networking navigation services Maintenance ¡ Stolen Car Voice & firms Mobile ¡ Car sharing LBA / LBM vehicle maintenance messaging operators recovery Energy PAYD / Road user Power ¡suppliers Financing bCall management PHYD charging Tolling ¡ operators Oil ¡companies Banks ¡& ¡ Assistance ¡ Insurers leasing ¡firms providers LBA: Location-based Advertising; LBM: Location-based Marketing PAYD: Pay As You Drive insurance; 7 PTOLEMUS Source: PTOLEMUS PHYD: Pay How You Drive insurance

Introduction Our Insurance Telematics study is the most comprehensive report written on the subject • 410 pages of analysis on the • 10-year market forecasts PAYD / PHYD market based on - Country's readyness to telematics - 83 interviews in 18 countries - Country forecasts for the US, Italy, the UK, France, Germany and - 230 figures (charts, tables...) Russia - 2 years of research - Bottom-up estimates of the number - Our experience & vision of the of policies for each insurer in the ecosystem incl. OEMs and TSPs US, the EU and in South Africa • Case studies & learnings from • Insurer's telematics market ALD Automotive, Amaguiz, model results in 4 markets* Coverbox, Discovery Insure, GM • A complete set of OnStar, Hollard Insurance, Insurethebox, Liberty Mutual, MAIF- recommendations to MACIF, Norwich Union, Octo underwriters, TSPs, OEMs, Telematics, Progressive, Solly Azar, MNOs and governments State Farm, Unipol, Uniqa, Zurich • A strategic analysis of the value • A handbook of suppliers' More than a research chain evolution including study, a real strategic solutions including our own market analysis - The impact of eCall evaluation & ranking - The impact of the smartphone - The effects of the gender ruling * Italy, the UK, France and Germany 3 PTOLEMUS

Authors This study has been written by strategists with decades of experience of telematics, automotive & mobility More than a research study, a real strategic market analysis 9 PTOLEMUS

Primary research We have interviewed over 80 companies in 18 countries including 30 insurers Organisation Country Achmea Netherlands Organisation Country Airmax Group UK Cobra Automotive France ALD Automotive France Organisation Country Continental France Allianz France MAIF France Covea France Organisation Country Allianz Germany Masternaut France Coverbox UK Telogis USA Allianz Italy Metaskil UK Crédit Mutuel France Texa Italy Amadeus Capital Partners UK Michelin France Cybit UK The Co-operative Insurance UK Amaguiz (Groupama) France Mobile Devices France Daimler Insurance Services Germany TomTom Business Solutions UK Aplicom Finland Navteq France Touring Belgium ERTICO - ITS Europe Belgium Arval France Norton Rose UK Toyota Belgium European Commission Belgium Aviva UK Octo Telematics Italy Trimble MRM UK Generali France Axa Belgium Qualcomm Enterprise Services Netherlands Uniqa Austria Generali Group Italy Axa Assistance France Vivium / P&V Belgium SAP Switzerland Greenroad Technologies US / Israel Bird & Bird France Vodafone UK Scope Technologies Singapore Hughes Telematics USA Cesar Satellite Russia Wireless Car Sweden Sensomatix Israel ING Netherlands CNIL France Wunelli UK Skymeter Canada Lysanda UK Young Marmalade UK Standard & Poors France MACIF France Zurich Financial Services France Stok Nederland Netherlands Zurich Fleet Services UK Telit Italy Zurich Italy Zurich UK 10 PTOLEMUS

All sides of the topic 410 pages of facts, figures, examples, case studies, forecasts and recommendations I. VI. IV. II. VII. V. III. 11 PTOLEMUS

Contents Over 230 charts, diagrammes, illustrations and tables Customer lifetime cash flows for the insurer - UK The telematics customer NPV explained - UK £ Reduction in claims costs 900 Additional Telematics investment costs Other income 600 expenses Increase in (due to earned longer Additional premiums lifetime) VAS due to longer lifetime Telematics £645 customer 300 Average £263 customer 12 PTOLEMUS