The motor insurance industry is seeing an unprecedented level technological innovation as cars fully integrate into the connected world. Today we see a shift across the automotive industry and insurance as a whole. There are a diverse range of telematics and UBI offerings out there and yet it is challenging for market players to increase adoption rates, develop successful business models and marketing strategies for their products across the globe. The Internet of Things (IoT), connected mobility, telematics and the autonomous car are collectively driving insurance carriers to re-think their business.
The Insurance Telematics and UBI Report 2016: Marketing and Consumer Barriers will focus how these products are developed and marketed successfully around the world. In this report we dissect the global telematics and UBI landscape and delve into the development process
of some of the leading products on the market to develop the formula for successful development and marketing of telematics and UBI products. Through years of research and hundreds of hours of interviews we have created this in-depth report with the help of industry experts. We hope you find this report informative and valuable in your industry endeavours over the coming years.
Key areas covered:
- Industry Landscape: Access inside expertise on the growth and development of UBI and telematics products to benchmark your strategy
- The Adoption Challenge: Examine the data on adoption rates of leading insurance products to position yourself for future growth
- Form a Strategy: Get to grips with what really makes a successful marketing proposition for insurance products to drive success in your business
- The Consumer Barrier: Learn about the most effective methods of overcoming consumer objections to UBI and telematics and what extra is needed to succeed
Your key questions answered:
- Where is the insurance telematics industry at currently?
- What are the general feelings of industry players on where their products are at. How do people view the biggest issues?
- Is it solely a marketing issue?
- Overview of the UBI and Insurance Telematics industry globally. What are the adoption rates?
- What are the problems?
- Every year people say this is the year that the industry will take off?
- Who is driving innovation in insurance telematics and UBI products?
- Who are the top 5 companies (for US and Europe) in this space? What can be learnt from their model?
- Present findings of our consumer survey? What are the main objections? Why won’t customers take up UBI and Insurance Telematics products?
- Aldo Monteforte, Chief Executive Officer, The Floow
- Benoit Tournier, Business Development Director, Sierra Wireless
- Colin Wright, Principal, Corner Two Consulting
- Danny Maco, Head of Customer Experience, HiMEX
- David Lukens, Director – Vertical Markets, LexisNexis
- David Pratt, General Manager – Usage Based Insurance, Progressive Insurance
- Don Civgin, President, Emerging Businesses, Allstate
- Drew Barringer, Research Analyst, State Farm
- Ginger Purgatorio, Connected Car Vice President, Allstate
- Jerel Cestowski, Business Development Manager, American Family Insurance
- Jim Levendusky, Vice President – Telematics, Verisk Insurance Solutions
- Jim Weiss, Director – Analytic Solutions, ISO (a Verisk Analytics Company)
- Luigi Barcarolo, Head of Telematics Competence Centre, Generali
- Mark Breading, Partner, Strategy Meets Action
- Mark DeCarlo, Director of Quality Control, American Transit Insurance
- Mark Godfrey, Head of Insurance, RAC
- Matteo Carbone, Principal, Bain & Company
- Michael Simmonds, Head of Business Development, Automatic Labs
- Nick List, Fleet Intelligence, European Proposition Manager, Zurich
- Nino Tarintino, Chief Executive Officer, Octo, North America
- Orlando Mercado, Product Management Director, Allstate
- Paulina Yick, Telematics Marketing Manager, Verisk Insurance Solutions
- Roberto Polli, Head of Telematics, Vodafone
- Ruben Aparicio-Mourelo, Deputy Manager, CESVIMAP
- Scott Bruns, Technology Director, State Farm
- Simon Ralphs, Chief Executive Officer, Telematicus
- Simon Rewell, Business Development & Road Safety Manager, Insurethebox
- Steve McKay, Chief Executive Officer, Drive Factor (a CCC Company)
- Thomas Hallauer, Research & Marketing Director, PTOLEMUS Consulting
- Tim Marlow, Head of Autonomous & Connected Vehicle Research, Ageas
- The Hartford
- Generali Group
- CSAA Insurance Group
Index of figure and tables
1. Today’s insurance telematics and UBI landscape .
1.2 Adoption rates for UBI and insurance telematics globally
1.3 The more established markets
1.3.2 United States
1.3.3 United Kingdom
1.4 Emerging markets and segments
2. Obstacles and challenges ahead
2.1 Don’t miss the boat
2.2 Narrow value proposition
2.3 Consumer awareness and poor marketing
2.4 Providing added value
2.5 Lack of data
2.6 Missed opportunity
2.7 Make it easy for the consumer
2.8 Limited shopping rates
2.9 Restricted product availability and choice
2.10 Privacy concerns
2.11 A resistent sales channel
2.12 High solution costs
2.13 Discount models
3. Most innovative programs and models
3.1 Insurance Per Day
3.2 Ridesharing insurance
3.3 Promoting safety
3.4 Loyalty shopping rewards through a smartphone app
3.5 New insurance aggregator model
3.6 Data portability
4. Who/what is driving innovation in insurance telematics and UBI products
5. Who are the top companies in this space
5.1.2 State Farm
5.2.1 Octo Telematics
5.2.3 Generali Insurance
5.3 What can be learnt from their model / strategy
5.3.1 General findings
5.3.4 State Farm
5.3.7 AAMI, Discovery, Metromile
5.4 Chapter round-up
6. The TU-Automotive consumer survey
Q1 Before this survey where you aware of motor insurance telematics?
Q2 Do you have a telematics insurance policy?
Q3 If you could use a device for free to reduce your car insurance premiums – if you and your family drive carefully – how interested would you be?
Q4 How likely would you be to take out an insurance policy which used data on your driving to offer the following options?
Q5 Which of the following do you think are the target markets for motor insurance telematics?
Q6 How do you see the uptake of insurance telematics?
Q7 Which of the following would be important to you as part of an insurance telematics package?
Q8 Which of these technologies would you favor to track your driving habits and possibly reduce your insurance premium?
Q9 How much would you have to save on your premium to share your driving data with your insurer?
Q10 Where do you come across information about motor insurance policies?
6.2 Why will customers not take up UBI and insurance telematics products?
6.3 Headline results
7. Regulations and privacy
7.1 Impact of regulation on the insurance industry
7.1.1 UK and Europe
7.2 Regulatory developments
7.3 Recent precedent on car/insurance data?
8. Why marketing is essential in UBI and insurance telematics products
8.1 How to build an effective value proposition
8.1.1 Set clear objectives
8.1.2 Offer personalized VAS and rewards
8.1.3 Offer a choice of UBI devices
8.1.4 Educate consumers
8.1.5 Find ways to become relevant to a consumer’s daily digital life
8.2 The optimum blend of VAS and discounts
8.2.1 General overview
8.2.2 US, UK and Canadian markets
8.2.3 Consumer sentiment
8.2.4 Better segmentation
8.2.6 Device deployment costs hinder service provision
8.2.7 UBI needs to demonstrate more consumer value
8.3 Types of VAS and who are offering them and why
8.4 Which carriers are offering discounts and what have been the successes
9. Case studies
9.1 North America
9.1.2 State Farm
9.1.3 Drive Factor
9.2 Europe / Rest of the World
9.2.3 The Floow
Figure 1: Telematics penetration in Italy by district
Figure 2: Number of live UBI policies in the UK in 2015
Figure 3: US consumer awareness of UBI
Figure 4: Interrelated claims functions that benefits from the integration of telematics data
Table 1: 2014 UBI adoption rates
Table 2: 2016 UBI adoption rates
Table 3: Number of live UBI policies in the UK in 2015
Table 4: Before this survey were you aware of motor insurance telematics?
Table 5: Do you have a telematics insurance policy?
Table 6: If you could use a device for free to reduce your car insurance premium – if you and your family drive carefully – how interested would you be?
Table 7: How likely would you be to take out an insurance policy which used data on your driving to offer the following?
Table 8: Which of the following do you think are the target markets for motor insurance telematics?
Table 9: How do you see the uptake of insurance telematics?
Table 10: Which one of the following would be important to you as part of an insurance telematics package?
Table 11: Which one of the following would be important to you as part of an insurance telematics package?
Table 12: Which of these technologies would you favor to track your driving habits and possibly reduce your insurance premiums?
Table 13: How much would you have to save on your premium to share your driving data with your insurer?
Table 14: Consumer demand vs UBI value proposition
Table 15: Insurers offering value-added services
Table 16: North American carriers offering discount
Table 17: European insurance companies offering insurance discounts
Connected Car Insurance Europe 2017 Conference & Exhibition (April 19-20)
This is the largest and most comprehensive forum in Europe dedicated to connected car insurance. With over 400 attendees from across 25+ countries globally and 50+ executives speakers, this event will address the technological challenges and new business models to impact the motor insurance industry as it converges with the connected car.
An executive pass is available that includes full conference access and a copy of the report.
Extensive industry research has been carried out with insurance experts for the past two years to develop the information in this report. Over 100 hours of interviews with key industry figures were performed and collated with recent information and insight from TU-Automotive Insurance events. The report also draws upon academic or openly available commercial literature. We made substantial use of the academic literature on automotive insurance. Confidential information was ruled out. The report would not have been possible without the in-depth interviews that we conducted with automotive insurance experts. Their influence and expertise is scattered throughout this report, as well as direct quotes from many of them.