Embed Size (px)
Citation preview
Perspectives for autonomous car insurance
19/12/2016
CNAM MBA FINAL PROJECT PRESENTATION - JC BEKALE - 15122016 1
MBA Final Project:
Student: Jean-Cedric BEKALE
Advisor: Simon KAY
CNAM MBA Final Project presentation - JC BEKALE - 15122016
Agenda
1. The connected car
2. The risk profile
3. The new business model
4. Q&A
Date
2
1 The connected car
Date
CNAM MBA Final Project presentation - JC BEKALE - 15122016 3
/ 4 CNAM MBA Final Project presentation - JC BEKALE - 15122016
Date
Autonomous
driving
Safety
Well-being
Zero injuries Vehicle
management
Mobility
management
Home
integration
Main features of
connected car
The connected car aims at reducing the risk related to the car driving
What are the perspectives for autonomous car insurance ?
The connected car
/
Weaknesses
• Road deaths
• Change in customer
experience
• High competition
CNAM MBA Final Project presentation - JC BEKALE - 15122016 5
• New technologies
• Development of UBI
• Big Data
Opportunities
New motor
insurance
business model
More customized
motor insurance
Big data: Car
driving info
Connected
technology
Traditional/Connected car
Market analysis
2 The risk profile
/
The connected car’s risk profile
CNAM MBA Final Project presentation - JC BEKALE - 15122016 7
Existing risks
Car damage
Theft
Accident
Third party injury
“Connected”
Emerging risks
Cyber risk
Component failure
Software bugs
Communication
failure
“Connected car”
Risks
Existing risks
Emerging risks
Change in motor risks profile
/ 8 CNAM MBA Final Project presentation - JC BEKALE - 15122016
Emerging risks
Existing risks
1. Root causes
2. Cause effect
Occurrence
of the risk
Change in the hierarchy of motor risks profile
The connected car’s risk profile
/
Covers
CNAM MBA Final Project presentation - JC BEKALE - 15122016 9
Development of emerging risks products covers
Product Main covers Targeted segment
Cyber protection
Cyber risk
Car manufacturer
Car damage
Car theft
Third party liability
Accident
Component protection
Component failure Component
manufacturer
Accident Car manufacturer
Car damage
Third party liability
Software protection
Component failure Car manufacturer
Accident Software supplier
Car damage
Third party liability
Communication secure Risks related to the
communication failure
Virtual Network
provider
Car manufacturer
Driver secure Third party liability Car owner
3 The new business model
/ 11 CNAM MBA Final Project presentation - JC BEKALE - 15122016
Key success factors
/ CNAM MBA Final Project presentation - JC BEKALE - 15122016 12
The business model
Mutualisation
Customized
usage based
underwriting
Real time technology based
/
The underwriting model
13 CNAM MBA Final Project presentation - JC BEKALE - 15122016
Technical method Usage based underwriting Instant risk underwriting
Pay As You Drive
Pay How You Drive Yearly based premium Pay For Your Drive
Real time based underwriting Past based underwriting Future based underwriting
Future Past Present
Connected car Traditional car Traditional car
The motor insurance underwriting method
?
/
The real time underwriting model
14 CNAM MBA Final Project presentation - JC BEKALE - 15122016
Weather conditions
Infrastructures conditions
Traffic conditions
Destination
Time INPUT
Premium calculation
Premium
OUTPUT
Real time connected underwriting model
Real time claim statistics
Development of the real time « On demand » connected motor insurance
/ 15 CNAM MBA Final Project presentation - JC BEKALE - 15122016
Go for your
ride Define your
destination
1 Request for
insurance risk
cover
2 PFYD
premium
computation/
offer
3 Validate
offer/cover
4
Mutualisation Park
Monthly fee
1
PFYD insurance
Real time
Usage Based
insurance
2
The business model “D2I”
Real time « On demand » motor insurance : Pay For Your Drive
All steps are from inside the car through connected car technology
« D2I » model
« D2I »: Digital Driving Insurance
Pt= αt + β
/
Takeaways
16 CNAM MBA Final Project presentation - JC BEKALE - 15122016
1. The connected car purpose is threatening the sustainability of the
motor insurance business
2. Customer experience and needs are changing
3. Technology and Data management would become the new market
barriers
4. Motor insurers would have to adapt their organization and processes
to new technologies and data management capabilities
5. The Digital Driving Insurance “D2I” business model has to be
considered for a successful connected motor insurance business
Thank you for your attention
Jean-Cedric BEKALE
COFACE GLOBAL SOLUTIONS
Sales Manager
TEL. : +33 (0)1 49 02 12 05 –
Mobile:+33 (0) 6 88 62 13 90
