AIGHarry Storck

Global Leader – Auto Liability

How Vehicle Technology Will Change Future

Insurance Service Offerings

At the end of this session, you will:

• Have a broader understanding of the Commercial Auto insurance industry and marketplace

• Get an insurance industry perspective on how the commercial fleet world is evolving

• Gain increased familiarity with vehicle safety technology and its value for commercial fleets and insurance carriers

• Better understand how insurance companies integrate vehicle technology into their service offerings

Source: WTW Market Update 10.2018

Commercial Auto Industry Combined Ratios

Fleet World is Evolving Rapidly

• Role of fleet manager

• Total Cost of Ownership (TCO) focus

• Is safety a priority?

• OEM and “aftermarket” technology advances

• Vehicle evolution & options– Electric vehicles, Alternative fuel vehicles, No vehicle???

• Mobility as a Service (MaaS) options

• Autonomous Vehicles

Common Light Duty Fleet Characteristics

• Unregulated

• Fleet safety generally not a priority or consistently documented

• Lack of dedicated resources

• Safety often a conflicting priority

– Sales goals, Productivity targets, Client satisfaction

• “Big Brother” mentality often prevalent

• Bare minimum

– Employee application, MVR’s, Low technology adoption

Fleet Technology Landscape

• Changing rapidly• OEM solutions or after-market • Identification or intervention• Impact to vehicle selector• Adoption levels• Driver Acceptance

• Cost & R.O.I.• Dedicated human resources• Sustainability concerns• Data overload • False positives• Carrot or stick

Choosing the Right Technology

• Identify specific improvement categories

• Active involvement from corporate champion

• Obtain necessary internal resources

• Create program transparency with all stakeholders

• Timely and consistent supervisor involvement

• Custom rules vs. “stock rules”

Poll regarding how involved supervisors are

Source: eDriving telematics webinar 09.25.2018

What Platforms Work Best & Why

Telematics

– Plug & Play vs. Smartphone apps

Camera solutions

– Forward facing & driver facing

Collision mitigation

Distracted Driving technology

Data Challenges for Insurance Carriers

Who pays for service/data?

Current ownership (TSP fleet user)

Multiple data formats, False Positives

Varied use cases & rules logic

Fuel cost, Routing, Maintenance, Safety

Cost

Renewal cycle

• Current profitability

• Cost & R.O.I.

• Customer commitment

– Timely action, Coaching, Training

• Time to deploy

• Time to validate results

• Renewal Cycle

14

Technology & Insurance Products Integration

Journey Towards Autonomous Vehicles

• Timing

• Early applications

• Ins Product shift

Q&A

AIG Client Risk Solutions provides solutions beyond traditional risk transfer, to help protect property, people and performance.

The information, suggestions and recommendations contained herein are for general informational purposes only. This information has

been compiled from sources believed to be reliable. Risk Consulting Services do not address every possible loss potential, law, rule,

regulation, practice or procedure. No warranty, guarantee, or representation, either expressed or implied, is made as to the correctness

or sufficiency of any such service. Reliance upon, or compliance with, any report in no way guarantees any result, including without

limitation the fulfillment of your obligations under your insurance policy or as may otherwise be required by any laws, rules or

regulations. No responsibility is assumed for the discovery and/or elimination of any hazards that could cause accidents, injury or

damage. The information contained herein should not be construed as financial, accounting, tax or legal advice and does not create an

attorney-client relationship.

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provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more

than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect

their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the

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