1

The UBI market today

Source: PTOLEMUS UBI Global Study 2013 - Note: The list of insurers is far from being exhaustive

0 1 2 5 10 20 40

US

- AAA

- Allstate

- Am Fam

- Farmers

- GMAC

- Liberty Mutual

- Mapfre

- Progressive

- Safeco

- State Farm

- The Hartford

- Travelers

- USAA

Canada

- Desjardins

- Industrial Alliance

Mexico

- GNP

Japan

- Aioi Nissay Dowa

- Sompo

South Africa

- Discovery - MiWay

- Hollard - OutSurance

Australia- AI Insurance- Insure Box

Europe

- The AA - Co-operative - Linear

- Admiral - Coverbox - Mapfre

- Ageas - Direct Line - Renaissance

- AIG - Generali - RSA

- Allianz - Equity Red Star - Sara

- Aurora - Groupama - Unipol

- Axa - Ingenie - Uniqa

- Aviva - Insure the box - Zurich

The market for telematic insurance is now global

1

2

Share of total auto policies

Time

Penetration of UBI in total auto insurance policies (%)

Source: PTOLEMUS

The 5 leading countries are all high premium markets

The UBI market today

3Source: PTOLEMUS, based on Gartner's Hype Cycle

The time has come for insurance telematics

Motor Insurance 2.0

Insurance telematics has been through the peak & disillusionment phases

2012

Maturity

2013

The AA and Admiral launch PHYD offers

Gender ruling

becomes applicable

Enlightenment

2011

NYC & Massachus

sets investigate

PAYD models

Zurich launches

Fleet Intelligence PHYD offer

ÖSA launch telematics

offer in Germany

Test-Achats gender ruling

European Commission decides

to mandate eCall

Moody's recommend

s usage-based

insurance

Technology trigger

Peak of expectations Disillusionment

Unipol & Aurora launch Octo's

solution

Progressive launches MyRate,

1st PHYD offer

2004

Progressive pilots

TripSense UBI

program

2005 2007 2008 2009 2010

Renault launches

commercial line PAYD

programme

Norwich Union stops

PAYD programme

Norwich Union

launches PAYD offer

2006

Groupama launches Amaguiz

PAYD system

Towergate & Aviva launch PAYD

commercial insurance

Qualcomm launches PAYD / PHYD

solution

Norwich Union

launches PAYD trial

MAIF & MACIF launch

unsuccessful

telematics offer

Launch of Coverbox by Cobra Wunelli

Launch of Insure The Box in the

UK

Progressive renames MyRate

Snapshot Discount

Toyota & Aioi launch PAYD on

Toyota's G-Book

2003

Unipol trial of Octo's solution

Amaguiz launches 1st OBD

solution in Europe

Autoline launches

1st

smartphone solution

Progressive reaches 1

M cum. UBI customers

OEMs freeze eCall

devices specs

Monti law implementa

tion

1st OEM policies

ABI publishes

good practice guideEC

published eCall

delegated act to

mandate eCall by

2015

4Source: PTOLEMUS

Connectivity is changing everything - Numerous players will be tempted to offer PAYD insurance

LBA: Location-based Advertising; LBM: Location-based Marketing PAYD: Pay As You Drive insurance;

PHYD: Pay How You Drive insurance

Insurance telematics

Handset vendors

Car OEMs

Insurers

Tolling operators

Navigation & search

vendors

Oil companies

Power suppliers

Mobile operators

Assistance providers

Banks & leasing firms

Maintenance firms

Telematics service

providers

Car sharing

Multimodal navigation

Traffic & other

services

Road user charging

Financing

Social networking

PAYD / PHYD bCall

LBA / LBMStolen vehicle

recovery

Voice & messaging

eCall

Energy management

Car maintenance

Resource management

Connected car services

5

How to make UBI a mass consumer proposition?

Source: PTOLEMUS

A new form factor for mass UBI?

Fixed Removable

Line-fitted

Aftermarket

Portable

Black box OBD dongle PND

Smartphone

FMS box

OEM system Semi-embedded systemVehicle keys

Battery-powered modules

Digital tachograph

DSRC tag

Speed camera locator

Supplier system

Cigarette-lighter device

Possible devices for UBI and more…

Smartwatch

Dash camera

from 1.0 to 2.0

that has to evolve…- certified Hw

- standard protocol TSP-TSP- MSD standard- standard protocol Hw vs TSP- standard interoperability and portability process- same hw platform for private, insurance and public interest service

6

7

Auto Insurance 2.0

Source: PTOLEMUS

Insurance telematics brings Auto Insurance 2.0

TODAY 2020

CURE

High claims ratioFraud, theft, etc.

PROTECT & PREVENT

High expense ratioDriving behaviour advice, eCall / bCall, etc.

OPAQUE & FOCUSED ON THE PAST

No understanding of actual risks, only of past risks

TRANSPARENT & PREDICTIVE

Real-time visibility on risks, crashes, thefts, etc.

DIVERGING INTERESTS

"Higher premiums: more profits for the insurer"

ALIGNED INTERESTS

"Lower premiums, lower claims: more profits for the insurer"

2

7

A sight on the 2013 study

“A truly comprehensive picture of the UBI market”

• 800 pages of in-depth analysis on the UBI market based on

- 200+ interviews in 25 countries

- 3 years of research performed by 6 consultants in 4 countries

- The learnings from 15+ consulting assignments for insurers, OEMs, TSPs, investors, etc.

- Our experience & vision of the ecosystem incl. OEMs and TSPs

- 350+ figures (charts, tables, etc.)

- 60 relevant patents listed

• Case studies & learnings from ALD Automotive, Autoline, Allianz, Amaguiz, Carrot, Coverbox, Discovery Insure, Generali, GM OnStar, Hollard Insurance, Ingenie, Insurethebox, LeasePlan, Liberty Mutual, MAIF-MACIF, Norwich Union, Octo Telematics, Progressive, Solly Azar, Quindell, State Farm, Unipol, Uniqa, UK aggregators and Google, Young Marmalade, Zurich

• Detailed profiles of

- 20 insurance markets

- 20 leading UBI insurers

• A handbook of 45 suppliers' solutions

including our own evaluation & ranking

• 10-year market forecasts

- Country's readiness to telematics

- Forecasts for the US, Canadian, LATAM, European, Russian, African, Indian, Chinese and Japanese markets

- Personal line / commercial line

- Aftermarket / OEM

• Insurer's telematics market model results in 5 markets

• A complete set of recommendations to carriers, TSPs, OEMs, MNOs and governments

• A strategic analysis of the value chain evolution including

- The impacts of EOBR, eCall, CONTRAN 345, ERA Glonass, the Monti law, the gender ruling, etc.

- The impact of the smartphone

- Managing Big Data

The global reference report on the subject, quoted by:

- The Economist

- The Wall Street Journal

- Corriere della Sera

Note: A free 100-page abstract can be downloaded from www.ptolemus.com/insurance