Take a Look at the Topics that are Steering Connected Car Insurance in 2017
We have compiled 3 months of independent research to bring you the most business critical issues for the connected car and auto insurance.
Keynotes Track 1: UBI for Mid-Tier Insurers Track 2: The Foundations of Connected Car Insurance Services
Track 3: Connected Claims Track 4: The Expanding Ecosystem Track 5: The Future of Connected Car Insurance
KeynotesC-Level Fireside Chat: The Evolution of Motor Insurance is Connected
The face of motor insurance is changing. We speak to two C-Level executives as they shape their companies to meet the challenges and opportunities that connectivity brings.
- Get a direct insight to the change processes that are ushered in with the advent of connectivity compared to a greenfield approach to fully utilise connected car data
- Weigh-up the balance of today's business necessities versus developing a new and robust product roadmap to win out in an era of connected mobility and autonomous vehicles
- Asses the current value chain and how we expect to see this change as motor insurance becomes data and digital driven. Who are the giants at the gate?
Dan Preston, CEO, Metromile
Alex Timm, CEO, Root Insurance
Moderator: Thomas Hallauer, Research and Marketing Director, Ptolemus Consulting GroupReal Life Integrations With Automotive Data Sources Throughout the Insurance Lifecycle
It’s estimated by 2025, half of all insured vehicles will have native connectivity. Attend this keynote to learn about integrations LexisNexis has undertaken with automotive data sources to help insurers, OEMs and consumers benefit from this change, including:
- Insights gained from projects with several OEMs
- New opportunities to create exceptional consumer experiences across the insurance lifecycle, starting by leveraging insurers’ existing integrations within quoting and underwriting
- The importance of taking a device-agnostic, platform approach to help ensure consistent analytics and consumer experience regardless of the data sources involved
Pavan Matthew, Director, Automotive Business Development, LexisNexis Risk SolutionsDriving ‘No Touch Claims’ With the Data Exchange
As insurance companies become more insightful & automated the customer and ecosystem benefit. Here we explore how we reached this point and where to go from here.
- Solve the 'many-to-many' problem by utilizing the exchange model framework to collect data from the OEMs, TSPs and other providers to streamline operations and efficiency
- Enable cutting- edge capabilities (e.g. predictive analytics to severity threshold filtering) to bring the relevant party into play (i.e. property adjustors) to expedite claims and increase satisfaction
- Build a roadmap to no touch claims and proactive loss mitigation including fraud detection, total loss identification and the right next step (i.e. accident management) for added cost reductions
Jim Levendusky, Vice President - Telematics, Verisk Insurance SolutionsGetting to the Root of ADAS & Autonomous Data
ADAS are increasingly common on new vehicle models rolling off automaker production lines but clarity on how those systems perform is limited from the insurance carriers.
- Consider how conditional automation in adaptive cruise control, assisted braking and lane assistance will lead to a dependence on UBI data to price effectively
- Leverage UBI access to the CAN bus to harness data from proximity and G-force sensors to create an ADAS based 'vehicle behaviour' score to calculate the total risk of the car and operator
- Create correlation between the VIN and ADAS features via the OEM relationship to streamline the risk assessment process for connected and autonomous enabled vehicles
Jonathan King, ADAS Development Engineer, FCA Fiat ChryslerThe Risk of Distracted Driving in a Digital Age
2016 saw a shocking 10% rise in traffic fatalities - the sharpest increase since 1996. Here we assess the tech that's steering distracted driving from prevention to causation and management.
- Understand the multiple facets (e.g. infotainment, mobile compatibility) contributing to distraction resulting in rising premiums and increased costs for insurance companies
- Incorporate a distracted driving score as a key factor of risk based on smartphone use, both active (e.g. text messaging) and passive (e.g. GPS navigation)
- Measure the impact on risk as OEMs add features like ESC, FCW and AEB to vehicles. To what extent is ADAS contributing to diminished situational awareness in drivers?
*ESC – Electronic Stability Control | FCW – Forward Collision Warning |AEB – Automated Emergency Braking
Dave Pratt, General Manager - Usage Based Insurance, Progressive Insurance
Steven Fernandes, Director of Innovation, Octo TelematicsThe IoT Impact: Distribution, Rating and Underwriting of Personal Auto
Until recently, insurers have largely determined car insurance premiums based on proxies for actual driving behaviors but this is changing rapidly as other sources of data emerge.
- Eliminate overlaps of telematics data and traditional proxies to calculate provisional premiums and avoid further adjustments pending a telematics-based driving score
- As OEMs, telcos, mobile handset providers & location-based app providers (collectively called "data suppliers") move to monetize prepare for game changing revisions of auto insurance pricing
- Envisage how “data suppliers” could fundamentally change the way insurance policies are sold, underwritten and rated and the knock on effect to auto insurance carriers
Katie DeGraaf, Global Telematics Sales and Delivery Lead, Willis Towers WatsonInsurTech Startups on Stage
In 2016, Insur Tech companies raised $2.6 billion - more than the last five years combined. Hear elevator pitches from six innovative startups in the connected car insurance industry today.
- Six startups go head to head! Identify where startups are filling gaps in connected services, reacting to the autonomous and mobility trends utilising brought-in and on-board vehicle tech.
- Three expert judges: See what carriers, accelerators and venture capitalists are identifying as winning ideas for connected car insurance services, then can pick your own winners!
- At the end of the elevator pitches meet the founders and CEOs of these startups - develop relationships to put you in the driving seat for connected insurance services
Judge: Matteo Carbone, Founder & Director, Connected Insurance Observatory
Judge: Plug and Play Tech CenterFuture Proof Telematics
Insurance is being impacted from many directions and the era of connected customers is underway. Consider the requirements of a telematics platform fit for the digital and connected car age of auto insurance.
- The next generation telematics platform: Create interoperability across varied data sources spanning dongle, vehicle embedded to mobile solution to deliver next generation insurance solutions
- Overcome legacy issues of integration with a Platform as a Service (PaaS) approach that enable the utilisation of telematics data and services that is available today
- The risk of doing nothing: Understand the implications to your business of being overly cautious in the connected car arena - Can you afford to fight against innovation and insure unconnected drivers?
Jonathan Hewett, Chief Marketing Officer, Octo Telematics
Track 1: UBI for Mid-Tier InsurersUBI from the Ground Up
Insurance carriers are now realising the importance of moving their business digital. Understand how carriers that also move their products digital that will win out.
- Discard the rating variables and proxies of old (i.e. profession, credit score, marital status) to develop a digital standalone UBI rating model and product utilizing telematics data
- Identify correlations in telematics data and propensity of loss to develop experience ratings for UBI customers - Assess the risk of individuals over an entire class of policy holders
- Assess how a digitally structured business will act as a spring board for IoT, home and health based products. Identify the connection points today through this period of investment
Moderator: Mark Fitzgerald, Associate Director, Strategy AnalyticsCentralized vs. Decentralized UBI Product Development
Explore the operational challenges in UBI market entry and product development when looking at centralized vs. decentralized processes.
- Where's your UBI business? New markets, big platform needs and acquisitions? Go centralized! Big growth targets, markets segmentation and strong business leaders? Go decentralized!
- Align with a corporate wide strategy by instilling cross UBI product portfolio management - create interoperability, a common customer UI while eliminating costly development duplication
- Create true accountability for UBI business lines and a deeper understanding of PnL while enabling superior, tailored product design that overcomes generalization or "platformification"
James Spears, Assistant Vice President - Auto Experience, USAAMoving at Startup Pace with Digital Foundations
Insurance carriers are at risk of losing out on huge market share as agile startups make quick adjustments to their digitally based business to adapt and capitalise on gaps in the market.
- Evaluate a platform as a service (PaaS) development processes that allows for rapid, low-cost experimentation required to run UBI and other IoT applications
- The demand of scale: Get to grips with redundancy processes that need to be installed for hardware and software (at the data transmission and gateway) to decrease service lag
- Combine business-IT collaboration with multi-cloud deployment enabling cross-functional/vertical teams to rapidly deliver web and smartphone apps
Moderator: Jeffrey Hannah, Director, SBD North America
Track 2: The Foundations of Connected Car Insurance ServicesNavigate Digital Insurance Disruption & Emerging OEM Collision Course
Industry trends in the automotive insurance and OEM industries are having a profound and disruptive effect on each other. Delve into both and understand how your business will be impacted.
- Identify disruptive market trends in automotive and insurance sectors in North America (i.e. digital tech reducing barriers to market entry and the race with OEMs for driving related data)
- Understand the value of driver related data and insights that generate win-win scenarios for insurers while maximizing driver loyalty
- Learn how insurers can get ahead of the curve, working together with OEMs, leveraging digital insurance technologies available today
Steve Millstein, President - North America Sales and Business Development, IMSRate Modelling for UBI
Address and discuss the technological and business challenges that come with utilizing telematics data to calculate risk.
- The role of the ‘vendor’: With limited data means limited loss experience. How can you best leverage vendor programs that pool data from insurance companies to develop credible rates?
- Consider a direct purchasing channel of telematics rates to offset experience of in-house actuaries modelling telematics data
- Learn how to manage large volumes of data required for both modelling rates and feeding into policy systems for new rating processes whilst ensuring customer data privacy
Andy Goldby, Chief Product Officer, The FloowThe Evolution from Data Centre to Digital Ecosystem
As data proliferates in auto insurance carriers must restructure to be able to carry out digital business. Hear we examine some of the critical elements of this evolution.
- Align investments to re-platform; from policy centre to agency centre and enable scalability and on-demand services with workloads aligned to your infrastructure
- The price of choice. Assess the divergence in workflow management systems (WfMS) when you factor in multiple devices and vehicle models chosen by the customer
- Realise the importance of a digital centre to provide future-proofed foundations to capitalise on new tech (i.e. machine learning (ML) and Big Data) - stay ahead of the innovation curve in auto
Speaker TBCThe Shifting Regulatory Landscape in Connected Car Insurance
As UBI gains traction across North America, carriers look to launch new products and expand their coverage - but is there a need for a better dialogue with regulators to do so?
- Understand how extraction of data from sensors such as GPS, accelerometer can conflict with state-by-state regulation - align your backend infrastructure to maintain compliancy
- How do you approach filings for UBI programs when state regulators require evidence of data correlation to risk at wide variance of frequencies?
- Adhere to regulatory standards at each step of data transmissions - from the phone, app or dongle to data warehouse where it's processed & packaged - prior to reaching the data exchange
Eric Nordman, Director of Regulatory Services, NAICInsurance Telematics: A Fleeting Opportunity
Operating with unsatisfactory loss ratios i nsurers have reached a turning point in commercial lines coverage . Here we explore the window for innovation and opportunity.
- Debate the methods in which policies should be written for fleet vehicles with ADAS features such as AEB & LDW, which will be the subject of future hardware and firmware updates
- Implement triggered and extended video recording tech to accompany telematics data to protect drivers from liability of prosecution and enable onsite exoneration
- Identify circumstances (i.e. policy interpretation & reliance on exclusion clauses) to which claims are being disputed resulting in costly court involvement - is telematics the solution?
John Hansen, Director, Office of the CIO & Connected Services, Navistar
Track 3: Connected ClaimsThe Cogs of and Gears of Telematics & Claims
Investment in creating a claims department based on telematics data is a pivotal next step for carriers running UBI programs. Discuss the factors that you have to consider to ensure ROI.
- Alleviate operational costs of onsite claims adjusters with software that create a comms link with the insured for all aspects of the claim and repair systems
- The right tool for the job. How do you achieve the required data sample rate of 100Hz to perform accident reconstruction with anything other than a fixed accelerometer?
- Factor in a direct purchase of OEM held crash pulse data into a cost benefit analysis to run a connected car claims department. Does the data hold value post incident?
Troy Gates, Owner, Gates Collision CentersThe Next Step for Claims is Automation
Automating the claims process is unequivocally the way to save insurance carriers a huge percentage of their total revenue income. How can telematics be leveraged to bring this to fruition?
- Identify the regulatory impediments of automated processing; from adjudication of claims to communications (e.g. consumer bill of rights) to adhere to state by state legislation
- How do you restructure data modelling at the front end to deal with potential fraudulent behaviour covering hard fraud to opportunity fraud?
- Expedite claims and enable self-service from claim submission to crash validation to decrease soft leakage (i.e. repair management & storage costs) and reduce hefty claims department costs
Luke Harris, Director of Claims, Metromile
Nino Tarantino, CEO - North America, Octo Telematics
Track 4: The Expanding EcosystemData & Risk - A Sensory Delight
Across the value chain vehicle data is in high demand which requires more sensors in the vehicle. Now the question is how to harness that data to create cost effective services.
- Identify new areas of the value chain such as roadside assistance providers, dealerships & repair shops that can benefit from embedded and aftermarket sensor data
- Understand how you combine sensor data from HW such as laser and radar to create holistic picture of the driving and vehicle environment - build a higher resolution image of the risk
- Identify the variance in data sets when paired with different transmission devices from the ECU such as OBDII and Bluetooth
Alessandro Manca, VP Business Development and Sales, ContinentalThe Aftermarket in High Definition
The affordability of cameras and video files has made them a means to measure accountability and measure behaviour. Assess how insurers and service providers are leveraging this tech.
- Understand current capabilities of camera tech. (i.e. omnidirectional for 360-degrees video) that can be deployed for insurance purposes such as claims and UBI scoring
- Creating a picture of risk: Integrate video and image data within the risk rating parameters of a UBI programme. Can the lengthy actuarial process of 3-5 years be sidestepped?
- Rear vision cameras reduce claims by 17%. Create a value proposition for consumers to open access to the OBDII port to access vehicle data for increased UBI adoption rates
Stephanie Forster, Director of Insurance Programs, SmartDrive SystemsDisruption at the Door of Auto Insurance
Car safety tech. and shared mobility could bring non-traditional players to the $400 billion global auto insurance market. Understand how they could amass 20% of the auto insurance market.
- Re-position as the likes of Tesla, Google, Amazon etc. bolster distribution and logistics departments as the foundations for an insurance offering via a "shared mobility" initiative
- Understand the impetus to re-platform, restructure and reduce overheads as the paucity of claims brings premiums to all-time lows and invites new and aggressive competition
- Build contingencies for when tech giants leverage driver data (from apps such as Google Maps, Waze, Apple Maps) that enable competitive, tailored insurance offerings to its customers
Katie DeGraaf, Global Telematics Sales and Delivery Lead, Willis Towers Watson
Moderator: Karen Pauli, Principle, SMA Strategy Meets Action
Track 5: The Future of Connected Car InsuranceThe Transition to Autonomous
Fully autonomous vehicles may still be over a decade away. Here we explore the transitioning that insurers must face to ensure their role in the era of the driverless car.
- ADAS (e.g. adaptive cruise control, lane-keeping & traffic jam assist) will have an impact on the underwriting of new car models. Can you calculate propensity of loss without loss experience?
- Find new means to calculate risk. Discuss how patterns of crash frequency and severity that insurers use to predict risk will be affected as vehicles become safer and more intelligent
- Assess how radar sensors & computer vision, object detection, environment modelling and sophisticated decision-making software will affect vehicle value to balance cost vs. risk
Moderator: Thomas Hallauer, Research and Marketing Director, Ptolemus Consulting GroupChanging Nature of the Modern Vehicle
The uptake of new mobility models and new tech. will mark a clear transformation of the frequency of vehicle usage. How will the insurance industry respond?
- Study the new models of transportation (e-hailing, car sharing fleets, P2P car rental) and the flexibility of insurance coverage needed (i.e. episodic, intermodal) to stay relevant
- Factor in how mobility models are increasing individual vehicle usage to assess the impact on underwriting. Consider distance covered, hours driven and the frequency of repairs required
- Investigate how UBI tech. and processes (i.e. OBDII dongle, predictive data analytics, risk profiling) could be integrated with primary and excess insurance products
Dimitri Maex, President, Sentiance
Mariel Devesa, Head of Innovation, Farmers Insurance GroupInsuring the Autonomous Car
Tech milestones for the autonomous vehicle have been met as millions of miles are recorded but is the legal and regulatory framework ready? Here we assess implications of liability.
- Liability of the Highly Automated Vehicle (HAV) collision. How close are we to the necessary framework that desperately needs to be in place over the next 2-3 years?
- Today’s product liability won’t work! Understand how claims resolution will be impeded as component, software and CPU supplier’s dispute liability in slow & expensive court proceedings
- Will OEMs take embrace liability or can shared liability be designed within the policy dependent on vehicle use? Or will Insurers cover the owner and subrogate claims cost from the OEMs?
Jonathan Friedman, Attorney, Weinberg Wheeler Hudgins Gunn & Dial Legal Practice
Guy Dougherty, Head of Commercial Auto Product Development, Farmers Insurance Group