Telematics Developments in the Automotive Claims Industry...
Transcript of Telematics Developments in the Automotive Claims Industry...
Telematics – Developments in the Automotive Claims Industry
Dr. Richard J. Nathschlaeger
FIAR - 2014
Do you know what:
PAYD
PHYD
UBI
mean ?
This is, what they mean and will mean:
PAYD – pay as you drive !
PHYD – pay how you drive !
UBI – usage based insurance !
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Cars connected – future opportunities
Vehicle
Diagnostics
SMR
COLLISION NOTIFICATION
Navigation /
Routing Display
Real-time Traffic
& Traveler
Information
Display
Driver Comfort and
Convenience
Active Safety
Vision Enhancement
Rear-end Collision avoidance
Adaptive Cruise Control
Road Departure Warning
Less Accidents
Connected cars will be disruptive to automotive and insurance processes
Driver Behaviour
Analysis
Insurance
Telephone and
Internet Access
(Automated
Transaction)
E-CALL
OEM-CALL
FNOL
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210 million connected cars on the road by 2016 (est.)
80% of sold cars (Market penetration: units)
Canada
USA
West EuropeEast Europe
Asia
South America
Middle East
& Africa
CAGR: Compounded Annual Growth Rate / Source: ABI Research, Oliver Wyman-Analyse
Development of cars connected
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• EU regulation: Ecall on-board systems in ALL new cars by 2015
results in mandatory provision of IT-infrastructure for data collection
• device will need to contain a GSM module and a GPS or Galileo chip set
• move towards in-vehicle integration, driving the value of this market to a multi billion Euro
level.
EU-MARKET SITUATION AND CHALLENGES
eCall system
Ecall transmitts Minimum Data Set (MSD)
• Vehicle Identification
• Time of collision
• GPS positioning
• Driving Direction
• eCall Status
• Type of Motoring
)
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CURRENT MARKET SITUATION AND CHALLENGES
- OEMs focusing efforts on avoiding
accidents
- Active safety is priority for OEMs
- Consumers prefer safe cars
- Number of accidents will decrease in the
future
TODAY -20% accidents
2020 GOAL NO INJURES
Emergency
brake systemEg. BRAKE ASSISTANCE SYSTEMS
ACC (Autonomous Cruise Control)
ACC incl. Full auto break
Driving Assistance
ACC incl. presense side assistance
ACC incl. Front Assistance)
ACC incl. Adaptative Break Assist.
Intelligent Brake Assistant
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FRAUD. Global view on fraudulent motor insurance claims
MARKET OPPORTUNITIES
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FRAUD / DRIVER BEHAVIOUR – RISK PROFILE
MARKET OPPORTUNITIES
1. Current Market 2. Emerging practices 3. Behaviour change
Milleage and simple
Event-Based UBI
- PAYD (Pay As You Drive)
- Discount driven
- Premiums based on
simple patterns (distance &
time of the day)
- Payment for Risk Profile
on a larger pool of drivers
- Privacy concerns for
customers
Emerging Practices
- UBI value only for
insurances
- Value linked to pricing
- Technology plugged
- Focus on cost
- Communication only Car
to back-end
Longer-term Goal
The game changer
- PHYD (Pay How You
Drive)
- UBI value for insurance &
consumers
- Premiums based on actual
driven risk
- Customers prioritize
saving to privacy
- Focus on profitability
- Technology on-board &
M2M communication
Vision of the Used Based Insurance (UBI) market
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3. Servers receive data
and process it
4. Web basedsoftware offersdetailed insight
5. Provideconstructivefeedback as
needed
1. Sensors / Smartphone on board send data
2. Data sentover cellular
networks in real time
Signals
Servers Scoring
Sharing
Sensors
Basic Telematic System Architecture
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Example – UBI:
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• PAYD (Pay As You Drive)
• Vehicles safer to drive and protect passangers if
crash
• Advanced Driver Assistance Services (ADAS) in
high vehicles
• PRIVACY CONCERNS
• Premiums based on simple patterns (distance &
time of the day)
• Payment for Risk Profile on a larger pool of
drivers
• GROUP BEHAVIOUR
• UBI (Usage Based Insurance)
• PHYD (Pay How You Drive)
• Fraud and Leakage Claims detection
• Preventing crashes from happening (M2M)
• Driving behaviour is key factor in crashes
• Being first to be alerted by accidents
• SAVING PREFERENCES
• New risk algorithms, better calibrate
premiums with actual driver risk, how they
drive:
• Observing specific customer drive
(acceleration, braking, speeding, lane
changing)
• Pricing premiums based on the actual
risk posed by drivers
• Detecting fraudulent claims made by
customers
• Becoming the first to be alerted to
accidents
• PERSONALIZED RISK PROFILE
Ris
kfa
cto
rs
PAST FUTURE
Pro
file
Mo
del
Current Market & Future Challenges
Insurance companies Redefining
market
dynamics
Ten
den
cy
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Impact of Vehicle Connectivity on Insurance Value Chain
- PAYD: Usage-based insurance
- PHYD: Driver-behavior-based insurance
- Vehicle health monitoring and maintenance
- Driver vitals monitoring / distractions alerts
- Safest-route guidance
- ADAS + V2V + V2I: pasive and active correction
- eCall / ACN reduces severity of injuries and saves lifes
- Virtual Black Box transmits vehicle crash data / video
- Driver vitals / health data transmitted to first responders
- Reduction of survey and investigation cost
- Fraud prevention and reduction (~80%)
- Stolen vehicle tracking / location
- In-network partners with pre-negotiatied rates
- Pay as you need
- Virtual violation detection and notification
- Automated payment
Usage & Behavior
Crash
prevention
Fast & Correct
Response
Claims & Cost
Containment
Connected law
Enforcement
10%-30% Premiums
20%-35% of
Crashes
5%-15%
Savings
30%-80%
Savings
20%30%
Savings
NOTES
ADAS. Advanced Driver Assistance Systems
PAYD. Pay As You Drive
PHYD. Pay How You Drive
Current Market & Future Challenges
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Connected Car Savings
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UBI & monitored driving
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Do you now remember what:
PAYD
PHYD
UBI
mean ?
Thank you very much for your attention
– multumesc !!