Are you up to speed on the topics experts tell us are UBI business critical?
After months of research into which issues are most pertinent to the industry, we have put together an agenda which looks at the new, the important and the business-critical. Take a look below.
Ontario, Alberta and British Columbia are all poised to introduce or update UBI regulations. Navigate the roadblocks and business development opportunities these present.
- Ontario, home to the lion's share of policy holders, now accepts quarterly rate adjustments. Will this be extended to UBI policies and how does this affect the longevity of UBI products?
- Discuss the political nature of Canadian auto insurance, provoking the 15% rate reduction and consumer rights focus, to assess the prioritization of UBI within the industry
Assess the Quebec regulatory environment, with an open market allowing for ease of business and more creativity from carriers
Insurers are launching UBI programs across the globe. But which business models, such as a savings or a value-add play, have companies employed and what are the consumer responses to this?
- Compare and contrast recent research in the UK and US to highlight points of interest in consumer responses (e.g. the importance given to privacy) to inform your understanding of the customer
- Examine responses by specific consumer segments (eg. youthful operators) to understand the receptive and unresponsive segments, helping ensure lead-gen efforts are well placed
- Get an exclusive first look at the very latest research on the Canadian consumer, and their response to UBI, to ensure your consumer knowledge takes in the nuances of the Canadian customer
Telematics builds the insurer customer relationship through increased points of contact and support, bringing value to both parties. Examine the benefits of a 21st Century relationship.
- The consumer actually wants to hear from you! Understand the economics of rollover vs. leave in tech. to fully understand the breadth of value telematics can bring the consumer
- Discuss the interaction between the insurer and insured via increased points of contact, eg. driver coaching, to benefit both the carrier and the customer
- Examine the resources TSPs need to invest in to provide services to the insurer eg. IT infrastructures, call centres etc to create a simple yet effective system
How can insurance telematics give you a lasting competitive advantage? Learn what drives results from a leading insurer and a leading technology partner with a successful UBI program currently in market.
- Learn about the opportunities and challenges when launching a UBI program to ensure a successful deployment
- Discover how an experienced technology partner can enhance your program, from developing objectives, goals and strategy, to running trials and pilots, as well as regulatory assistance
- Uncover details about value-added services and future capabilities that leading insurers are deploying to further differentiate their telematics programs
TECH & DATA
The heart of UBI is data. How interpret it, store it, collect is and use it are all key concerns of the any insurer involved in UBI. Ensure your data is fit for tomorrow.
- The First Step: Ensure that enough data is collected with sufficient granularity to ensure that regulators believe it to be proven that certain behaviors are predictive of risk
- Feel the power of the cloud and Hadoop: Take a look at storage options, including the cloud to reduce costs and increase data storage capacity, ultimately improving the bottom line of your UBI program
- Examine the ability of UBI data to understand each individual policy holder, from driving habits to the shops they visit, and equip the insurer with key insights to improve their customer relationships
Tammy Chen, Consultant, Towers Watson
Cindy Maike, General Manager - Insurance, Hortonworks
The connected car has turned a corner and the past year has seen a surge in uptake. Examine the opportunities that the connected car going mainstream offers UBI
- Engage, retain and win! The connected car improves the customer retention model through services such as loyalty schemes attached to the policy to retain the client base
- Enter the world of value-added services, such as lower emergency response times and preferred providers for towing services and build relationships with customers in their hour of need
- Healthy Vehicles, Healthy Bottom Line: Discuss the data quality the embedded device affords eg. vastly improved Remote Vehicle Diagnostics and the cost reductions this has across the board
Barrie Kirk, Executive Director, Canadian Automated Vehicles Centre of Excellence
Robert Gruszczynski, OBD Communication Expert, Volkswagen Group of America
Alex Veilleux, Chief Product Manager UBI, Desjardins
As a second wave of insurance carriers are poised to launch into the UBI space, we examine the pros and cons of new devices vs. the OBDII vis-à-vis implementation cost, data quality and ease of use.
- The OBDII Route: Impeccable data, high cost. Does the cost-benefit analysis of the original UBI device stack up for insurance carriers across the market?
- Mobile App: The Dream Device? Apps have stormed the US market, reducing costs for insurers and insured. But will rights-centric Canada accept its reduced data quality?
- The new kid on the block - the hybrid solution. Combining OBDII data reliability and driver identification through the app, is this the solution the UBI market has been waiting for?
With any new industry or technology, new standards must be established and quality assurances introduced. UBI ushers in a new industry segment and technology. Is the industry prepared?
- No regulatory standards have been designed with UBI in mind. Map out the grey areas where the UBI industry requires further regulation
- Create consensus on a cross-industry Quality Assurance protocol to enable a tech. quality framework bespoke to UBI
- Look at the second release of the CSIO data standards that allows transfer of driving scores and discuss the implications for both data portability and consumer rights
Telematics is used to tackle to insurance roadblocks. Has Canada considered its own barriers before importing global business models? Discuss the roots of global case studies to establish the use case for Canada
- Discovery Insure: Incentivise and Save Lives. In a country with one of the highest road accident rates globally, the South African insurer offers 50% off BP fuel to good drivers
- Examine the use UBI event data in Europe to combat the high level of fraudulent claims made in this continent, reducing costs for the insurer and ultimately improving the bottom line
- With premiums through the roof, good Canadian drivers don't want to pay for bad ones anymore! Discuss how telematics could wave a magic wand and rate all drivers fairly
Consumer Engagement Strategies
With double the insurers now on the market, but policyholders remaining low, frustration is creeping in. Deploy marketing as your weapon of choice to convert thus far unconvinced drivers.
- Advertizing equals Educating. Consumer knowledge of UBI is low, so use your marketing campaign to educate and enlighten, to increase informed customer lead gen.
- It's Better Bespoke! Utilize segmented, targeted marketing campaigns to ensure the right message is reaching its intended audience to raise awareness of UBI as efficiently as possible
- With marketing costing millions, create a self-sufficient UBI business from your existing customer base before undertaking the risk of marketing telematics to the masses
With brokers losing ground on personal line market share and insurance carriers in need of increasing UBI policy-holders, take a look at a UBI landscape that benefits both parties.
- Figure out who owns the client relationship with a UBI product – broker, insurer or tech player? Thrash out a model that makes sure that everyone has a slice of the pie
- Step into the shoes of a consumer and discover the perceived risk/reward ratio for subscribing to a UBI product in light of privacy concerns
- Learn how UBI data be integrated into the existing transferral of information between broker and insurer so that findings from insurance telematics are interpretable and can used for actuarial purposes
Concern is rising about the longevity of discount-only UBI once self-selection has served its course and the pool of good drivers has dried up. We ask, are VAS services the answer?
- The function-creep problem: VAS requires proven informed consent by consumers for their data to be used by other services. Is this feasible to for carriers to implement?
- Which services add genuine value? Examine which services to offer, from young driver coaching to loyalty programs by focusing in on what the customer actually wants
- Use discounts for customer acquisition and VAS for customer retention, repaying the initial discount and improving the insurer's bottom line
While a portion of the UBI market is hailing VAS as the future of UBI, ensuring offsetting of implementation costs, others wish to stick to the fundamentals of the concept. We examine why.
- Discuss the longevity of the discount-only model via comparison with the long-standing credit score. So long as the variable is predictive of risk will it have longevity?
- Examine the core competencies of an insurance product, for insurers and brokers to help consumer get the best insurance for them, and establish whether VAS fall into this field
- Don't Overcomplicate It! Customers have always given insurers their data to protect their vehicles: if they understand the product is for insurance purposes their privacy concerns are no longer a roadblock
Insurance telematics could lower costs, motivate the workforce and decrease accidents in the commercial lines. We examine the market conditions and how this would be achieved.
- Commercial Lines Regulatory Potential: In fleets of 10 or more, premiums can be reviewed and changed at any point, giving the green light for insurance telematics to transform a fleet
- Outline commercial UBI benefits to fleet managers, such as saving fuel costs through reduced idling time, vastly improving the cost benefit analysis of insurance telematics implementation
- Examine driver credit reward systems, based upon data eg. hard-breaking and in-cab videos, that reward and improve driver behavior, lowering overheads and motivating the workforce
If you have any questions, please do not hesistate to contact me.