Telematics New Developments & Usage

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Telematics – New Developments & Usage

March 9, 2017

Presented by K Rajan

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Flow of discussion

Indian Automobile Industry

Indian Infrastructure

Challenges

Telematics – Introduction

Telematics Device

Smart Phone Technology

Benefits of Telematics

Fleet Telematics

Telematics Insurance

Global & Indian Market Scenario

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Indian Automobile Market – Sales Trend

0.00

5.00

10.00

15.00

20.00

25.00

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Nos.

in M

illion

Financial Years

Automobile Domestic Sales Trend

14%

3%

4%

79%

Domestic Sales Trend 2015-16

Passenger Vehicles

Commercial Vehicles

Three Wheelers

Two Wheelers


Sales has increased from 15 to 20.40 Million in the last 5 years

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Indian Roadways network is the second largest in the World next only to USA

Due to the rapid growth of population and theburgeoning middle class, infrastructure isconstantly on the rise in Indiawith new roadsnew bridgesnew flyovers being built all over and all thetime

Indian Road Network

Type Length (km)

State Highways 128,000

Expressways National Highways 66,754

Rural and other Roads 2,650,000

Important district roads 470,000

Total (approximate figures) 3,314,754

Challenges - Theft

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Challenges - Theft

http://indpaedia.com/ind/index.php/Automobile_thefts:_India

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Challenges - Theft

•A Vehicle is stolen every 13 minutes in Delhi•MV thefts make up fifth of all IPC crimes reported in Delhi

Source: Ministry of Road Transport Authorities and Highway

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Challenges - Theft

Stolen Vehicles Statistics - Delhi

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Avoiding Theft

•Use Stickers which says my Car is Protected

http://indpaedia.com/ind/index.php/Automobile_thefts:_India

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Consequence of stolen vehicles

Loss of wealth to the country and the vehicle owners

Parts will be sold illegally

Stolen Cars are used to commit Crimes

Financiers are not able to recover their dues

Every year Rs.2000/- Crores (approx.) worth of theft claims are settled by Insurance Companies. So, they are forced to increase premium to off-set loss.

Challenges – Road Accidents

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Road Accidents Road Accidents

1214 road crashes occur every day in India

Two wheelers account for 25% of total road crash deaths

20 children under the age of 14 die every day due to road crashes in the country

377 people die every day, equivalent to a jumbo jet crashing every day

Two people die every hour in Uttar Pradesh –State with maximum number of road crash deaths

Tamil Nadu is the state with the maximum number of road crash injuries

http://sites.ndtv.com/roadsafety/important-feature-to-you-in-your-car/

http://sites.ndtv.com/roadsafety/important-feature-to-you-in-your-car/

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Some of the causes of Road Accidents

Use of Mobile Phones while driving

Over Speeding

Drunken Driving

Distractions to Driver

Red Light Jumping

Avoiding Safety Gears like Seat belts and Helmets

Non-adherence to lane driving and overtaking in a wrong manner

Main cause of accidents and crashes are due to

HUMAN ERRORS


Telematics - Introduction

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Almost everywhere the need for remote monitoring of risk was felt

Manufacturers can build Vehicles with Tracking Application & Devices

With embedded Features to facilitate

- Navigation

- Tracking

- Location based emergency services

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Emergence of technologies such as GPS and internet lead to emergence of Telematics

Solutions for tracking Vehicles and assets on the roads to bring in safety

Evolution of Telematics

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Telecommunications Vehicular Technologies

Road Transportation Road Safety

Electrical Engineering Computer Science

Telematics encompasses

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Telematics is a combination of telecommunications and informatics

Telematics makes vehicle Safer

Telematics keeps the vehicle from getting lost

Vehicles are fitted with Telematics device to analyse driver’s behaviour

Driving information on braking, Acceleration, Distance Travelled, Speed etc are obtained

Telematics Device

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Telematics Device

• Where & when the customer drives and the type of Road

GPS System

• Impact on the Vehicle – from braking to accident

Monitor Censor

• Sends the information to database

Sim Card

• Controls how the information is analysed and transmitted

Computer Software

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Telematics Device

Telematics box (device) measures how a driver handles his Vehicle

Taking breaks in long Journey

Speed @ which customer drives

Brake or accelerate sharply

The time day/night of driving

Motor Way Miles, Total Mileage & No. of Journey

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Smart phone Technology

Two-thirds worldwide use the internet, but fewer do in Africa and South Asia

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Smart phones – Heading in the Future with Technology

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Through censors inside the driver’s mobile phone, actual driving behaviour can be gathered

Simple factors – distance / Mile to sophisticated factors such as whether smart Phone belongs to the driver can be obtained

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App also gives specific feedback to drivers on how to improve which could lead to fewer accidents

When location data and driving behaviour are analyzed, the software can determine whether the customer is behind the wheel.

Tracking apps can also detect texting or talking on the phone while driving

Technology difference provides insurance claims management and roadside assistance service


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Most accurate dataMost accurate

Analytics

Access to real-time information about customers’ driving

habit

Sophisticated information whether

the smart phone belongs to customer


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GNSS (Global Navigation Satellite system)

• A cellular network assisted GNSS receiver will typically provide measurements of position, speed & course within seconds after start up

IMU (Inertial measurement unit)

• The IMU provides measurements of specific force and angular velocity obtained from a three-axis accelerometer and a three-axis gyroscope, respectively

GNSS and IMU measurements are often fused in a GNSS-aided inertial navigation system (INS)

Primary information Sources

Benefits of Telematics

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Benefits – Manufacturer (OEM)

Performance of Key-parts can be measured against metrics

Improve Customer Service

Can monitor over-all performance of products

Increase in sale of sophisticated Vehicles

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Benefits - Customers

Better Road Assistance

Increased Productivity of Vehicles

Benefits like reduction in Insurance premium

Enhances Security as it works like a tracker of the vehicle

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Benefits - Insurers

Reduce Customer Acquisition cost

Reduce Claim Costs and Fraud

Increase Customers Loyalty

MOTIVATE

RETAIN

REWARD

Fleet Telematics

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Fleet Telematics

Monitoring of

• Location

• Movement

• Status

• Behaviour of Vehicle within Fleet

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Fleet Telematics

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Fleet Telematics

Safety

Gauging Maintenance

Eliminate Idling

Keep tracking of Vehicles

Improving routing

SOURCE: Press release; Company websites

Sharp

turns

Accele-

ration77% 63%

Braking 77%Time of

driving79%

Miles

driven100% Speeding 84%

Disengage-

ment of

device

47%Vehicle

diagnos-

tics

47%

Routes

used42%Location 43%

Telematics enables collection of a rich set of data, that is being used to mine for valuable insights

Carriers are collecting a rich set of driving data and learning from it

Sharp turnsAccele-ration

BrakingTime of driving

Miles driven Speeding

Disengage-ment of device

Vehicle diagnostics

Routes usedLocation

Fleet Telematics

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Insurers can offer innovative products to

Manufacturers For built-in Telematics

CustomersThrough tie-up with Telematics Service providers

Global & Indian Market Scenario

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Global Market

Commercial Telematics Market is expected to garner $49.12 billion by 2020, registering a CAGR of 18.4 %

during the forecast period 2014-2020

In certain economies like Brazil and China, the government legislations mandate the adoption of

telematics given the rising concern of vehicle tracking, safety and security

Asia-Pacific as well is forecast to be one of the most lucrative markets, in terms of growth given the supportive government regulations and the growing automotive market

Global Automotive Telematics Market is expected to attain a market size of $124.3 billion by 2022

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Indian Market

Commercial Vehicle Telematics Market in India to Grow to 15.73% by 2020

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In summary, telematics offers OEMs and Insurers an industry shaping partnership opportunity

▪ Automotive industry can enhance information and technology present in the car to provide additional service and higher protection to vehicle owners Telematics based

Usage Based Insurance (UBI)

productsInsurance industry

▪ Insurers are keen to offer innovative products

▪ Can reduce premium rate based on loss experience

▪ Differentiate customers based on usage

E

Insurance industryA

Technology providersD

▪ Technology providers will be in a position to sell products with innovative features to the vehicle owners through OEM at reduced cost due to higher volume of sales

RegulationC

▪ Government and police authorities will be able to monitor movement of vehicles and terrorist / illegal activities can be curbed

▪ Stolen vehicles can also be traced and national waste can be avoided

CustomersB

▪ Customers will be more satisfied with owning and usage of high-tech vehicles giving protection to it and the users

Automotive industry

Telematics New Developments & Usage

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