Post on 24-Feb-2016
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Usage Based Auto Insurance
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Snapshot Marketing Launched March 14th, 2011
… after 15 years of development work
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Usage Based Insurance: Telematics Technology
1999 20072004
Current
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Consumer Views on UBI
General Interest in UBI and Likelihood to Enroll
Key product design insights:
• No GPS• Optional
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• Participation is optional and free• 0% to 30% usage based discount• Partial monitoring model. Return device after 6 months.• $50 device non-return fee
• Discount based on:– How you drive (hard brakes)– How much you drive– When you drive
Snapshot Product Design
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Consumers Like Snapshot
• T12 premium = $1.8 Billion• 1.2 million Snapshot policies in force• One-third of direct shoppers opt in
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Snapshot’s Big Data
• 8 billion miles recorded– 1.3 billion trips– 6.6 miles per trip– 1.1 trillion one-second records
• 90 terabytes
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Driving Behavior Is Our Most Predictive Rating Variable
UBI
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0.000.200.400.600.801.001.201.401.60
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Why Is Traffic So Bad For Friday Evening Commutes?
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Why Is Traffic So Bad For Friday Evening Commutes?
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How Much Of Your Drive Time Is Spent Idling?
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How Much Of Your Drive Time Is Spent Idling?
Idle 1 to 30 31 to 50 51 to 75 >7526% 33% 22% 17% 0%
Source: Analysis of 9.8 million trips covering 63 million miles
% of time spent in each speed band
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UBI Customer Experience: Details Matter
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How Will UBI Evolve?
• Will consumers allow insurers to use location data?
• How predictive is data from mobile devices?
• How will the market address the worst drivers?
• What feedback is most effective to improve driving behavior?