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Unlocking Telematics with AI and Proactive Engagement

Rob Malattia FIA, FSAS APAC Head of Pricing and Portfolio Management

AIG, Singapore

Rob Malattia APAC Head of Pricing and Portfolio Management

June 2019

Unlocking Telematics with Artificial Intelligence and Proactive Engagement

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THIS PRESENTATION IS FOR INFORMATIONAL PURPOSES ONLY AND SHALL NOT BE CONSTRUED TO CONSTITUTE ADVICE. AIG ASIA PACIFIC INSURANCE PTE. LTD. (“AIG SINGAPORE”) MAKES NO REPRESENTATION OR WARRANTIES AS TO THE ACCURACY, COMPLETENESS OR TIMELINESS OF THE INFORMATION, TEXT, GRAPHICS OR OTHER ITEMS CONTAINED IN THIS PRESENTATION. AIG SINGAPORE EXPRESSLY DISCLAIMS ALL LIABILITY FOR ERRORS OR OMISSIONS IN, OR THE MISUSE OR MISINTERPRETATION OF, ANY INFORMATION CONTAINED IN THIS PRESENTATION.

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kilometers travelled on telematics in the past year

7.1 million

*Based on statistics from the General Insurance Association of Singapore Information on this slide is based on 2018 data.

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580+ employees

Singapore’s 2nd largest Auto insurer

135,000+ Vehicles insured

S$485 million Gross premiums written in 2018

29% Commercial

39% Consumer

61%

S$263 million Total amount of claims paid out in Singapore in 2018

S$3,066 Average amount

of a claim

325 Average number of claims paid

out every day in Singapore

Singapore’s leading non-life insurer*

Serving the Singapore community since 1953

Road Safety Education Programme

4,792 Pre-schoolers educated to date

Collaboration with the Singapore Traffic Police

2016

Premiums brought in by agents

Business segmentation

AIG Singapore at a Glance

HIGHLY CONFIDENTIAL – DO NOT COPY 5 Source: Land Transport Guru, Deloitte University Press | DUPress.com

#FutureIsNear

The Auto industry is changing, and changing FAST

Telematics landscape

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Engagement: But where is the relationship with the customer?

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Today, the only few touchpoints between a customer and an insurance company continue to be… 1. Purchase 2. Claim 3. Renewal

#GettingaSale

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Engagement: Where are we headed?

Every customer is unique Our goal is to de-commoditise auto insurance where the value proposition is clear to the customer, and this helps to drive customers' decision making.

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#OnDemand

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Launched on: 15 Dec 2016

Launched on: 1 Mar 2017

SINGAPORE AIG On the Go

HONG KONG AIG Drive Master

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Rewards and Discounts for Safe Driving

What did we do?

Expected Launch: 2H 2019

MALAYSIA AIG On the Go

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§ 

§  http://s7d2.scene7.com/is/content/aigassets/aig/apac/sg/videos/AIG-Blacks-Sevens-Web_high-res-autox432-800k.mp4

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AIG on The Go

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Unique Insurance Discount Structure

Acceleration

Braking

Key Features

Cornering

2 3

Connected Scoring

Algorithms

Explore Automobile

Related Services

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Manual vs Auto Recording

Option

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Engagement via Gamification

Always aligning with the

Fundamental Goals of the app

Unlock Badges to win

E-Reward Vouchers

Recognition for personal

achievement with high value

(safer) behaviors

1 “Reward Campaigns with Badges” “LIVE Leaderboard”

2 3 Scratcher

“More than 65,000 Badges

Successfully unlocked to date”

Daily/Weekly engagement

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Relatable Contests

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Parental Control

Reminders for Insurance renewal

and servicing

Online Accident Reporting

Invite friends and receive e-vouchers

Sharing industry information

on the Automobile Market in Singapore

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Other Features

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Promoting Safe Driving with Partners

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Holding contest for HomeTeamNS (Govt Organisation)

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Unlocking Capabilities with Artificial Intelligence

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•  Activity tracking and Automatic journey recording

•  Mode of transportation detection using movement patterns (for eg; car, train, boat)

•  Distracted driving detection (phone handling)

•  Customer segmentation based on car usage and driving behavior (for eg; risk, driving style)

•  Driving context detection using driving patterns (urban, residential, off-road, highway, accident reconstruction)

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Each trip was analyzed both per individual users and per individual trips.

>50% reduction

Driving Incidents

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17 The over-speeding time as the percentage of time that drivers spent in driving above the allowed speed limit.

The time per trip spent in over-speeding decreased over time, which is shown in the graph below:

>30% reduction

Overspeeding Time

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The below graph indicates overall increase of driving score across months as an average of all trips recorded in the respective month:

19% increase

Safety Score

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GEOGRAPHICAL INSIGHT EXAMPLE – morning destinations

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GEOGRAPHICAL INSIGHT EXAMPLE – latest trip

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GEOGRAPHICAL INSIGHT EXAMPLE – speeding locations in Singapore

New data sets are emerging! User of the system speed on majority of roads, but locations where speeding exceeded 2x over the speed limit are becoming noticable…Valuable information when compared with claims data.

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AIG OTG Model

ü  Connect with customers all day, every day when the customer drives.

ü  Interact with existing and non-existing customers on a real time basis.

ü  Engagement through updates, contests and rewards.

ü  Savings for drivers through discounts.

ü  Get closer to the risk and help mitigate it.

ü  Increase one’s road safety knowledge and awareness which leads to lower accidents. Safer roads are better for the community.

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#TelematicsGoals