Presentation made at the SMi conference in Feb 2015. The internet of things effect on the insurance sector Smartphonisation of UBI Share of devices used in UBI by 2020 OEM activities in UBI New players and supply chain disruption

1. PTOLEMUS Consulting Group
Growth analysis and
major trends in the
European UBI market
SMi’s Telematics for Usage-Based Insurance
Conference
London – 18th February 2015 - PTOLEMUS intellectual property

2. PTOLEMUS
PTOLEMUS in a nutshell
We help all players in the mobility ecosystem
2
ITS operators &
regulators Fleets
Fleets
Mobile device &
positioning suppliers
Telecom operators Automotive OEMs & suppliers
Financiers
2012 Directors’ report
(translation from the Italian orig
Insurers, aggregators & assistance providers
Content & application providers
OBD2 Bluetooth Dongle basic compatible car models
Telematics solution providers

3. PTOLEMUS 3
The Internet of Things affects many insurance lines
The car’s connections to other nodes and networks
Source: PTOLEMUS
e-health
(V2P)
Retail
Digital home
Smart Grid
(V2G) Smart City
Road network
V2I, V2V, ETC
Infotainment
application
integration
Future device environment - Macro-trends 2

4. PTOLEMUS 3
Major trends that insurers must take into account
Major trends
Smartphonisation
Massification
Diversification
Autonomous car
Car as a Service
Integration
with claims
Big data
management
Connected vehicle
integration
New entrants
and models

5. PTOLEMUS 3
We will focus on these 5 trends
Major trends
Smartphonisation
Massification
Diversification
Autonomous car
Car as a Service
Integration
with claims
Big data
management
Connected vehicle
integration
New entrants
and models

6. PTOLEMUS Source: PTOLEMUS
Smartphone-based offer is becoming the norm, first as a pre-
quote rating tool
6
• Wunelli partnered with SSP for
smartphone based UBI
- 1,000 Brokers will be able to obtain
a quote via SSP systems from a
panel of Soteria Drive insurers
• Other Wunelli-backed insurers, the
AA, AXA and Co-operative have
also launched their application
• Aviva has launched its own
application
- For customers with premium
above £400, discount can reach up
to 20% (Score over 7.1)
• So has Direct Line with discount
of up to 10%
5Trends and growth factors - smartphonisation

7. PTOLEMUS
Smartphones are the form factor of the future for UBI
• 3M driving assistance app
• 75% penetration: reach mass scale
and new segments
• More sensors than a black box (The
Floow uses 9 of them)
• Use as a universal interface, data
hub or tracking device
• Feature pilots include customer
service, billing, payment, claims...
• Can also complement other devices
• Hybrid solution will rapidly
calibrate smartphone
algorithms
• 80% of what black boxes do
7
Accelerometer
3-axis
gyroscope
Glonass
Barometer
Proximity
sensor
Light
level Touch screen
Camera(s)
GPS location & timeWiFiNFC
Bluetooth
iBeacon
Magneto-
meter
4G
connectivity
Microphone
Voice &
messaging
communication
Fingerprint
sensor
A smartphone brings more sensors
than a black box
Trends and growth factors - smartphonisation
Source: PTOLEMUS, The Floow

8. PTOLEMUS
Total volumes of new policies sold by device type - OEM & aftermarket (million)
Source: PTOLEMUS UBI market forecasts
The EU5 device market will become more fragmented...
8
Mutation of device form factors - Market uptake 5
EU5
0
2
4
6
8
10
12
14
16
2012 2013 2014 2015 2016 2017 2018 2019 2020
EU5- Volumes of policies sold by device type (million)
Line-fitted systems
Smartphones
Dash cameras
Windscreen devices
Self-install OBUs
Professionally-installed OBUs
Cut-down OBD dongles
Rich OBD dongles

9. PTOLEMUS
• Easy to develop - Standard cars API for all brands, standard
OSs (Android, iOS, HTML5, Genivi, etc.) and SDK
• Quick to market - Move dev timing from 4 years to 4
months. Set-up & update over the air, using smartphone‘s
virtualization
• Rich functionalities - Richer car APIs (command &
control), standard home API, city API, health API, wearable
API…
• Supplier & customer agnostic - Standard app or white
label app to be customised, no tie-in with suppliers
=> OAA will disrupt today’s connected
service value chain
Android is creating a smartphone-based data
collection standard for the car industry
2 mainstream car makers
Chinese OEMs
3 luxury car OEMs
Key factors to attract apps developersOEMs that did not signed the OAA
agreement
9
Trends and growth factors - smartcar

10. PTOLEMUS Source: PTOLEMUS, Renault
Renault is the fist car manufacturer to build partnerships
with a panel of insurers and to provide different UBI models
10
Renault's approach to telematics
Trends and growth factors - smartcar
Based on its R-link telematics platform, Renault offers 3
partnerships models to insurers:
• B2B model offering access to R-Link data to any
insurance company wanting to provide UBI under its
own brand
• A co-marketing model where the data is used in the
same way but the branding and communication is
shared between the 2 brands
• A white label model where Renault sells telematics
insurance under its own brand with an insurance
company providing the underwriting only
Renault’s projection is to have 200,000 R-Link equipped
cars on the road by the end of 2014, and 2.3 million by 2020
Amaguiz chose the co-marketing model for its PAYD
product

11. PTOLEMUS
Annual global connected car sales by connectivity type (million units)
Source: GSMA, Exane BNP Paribas estimates
2
We expect embedded solutions to gradually become dominant
11
Trends and growth factors - smartcar

12. PTOLEMUS Source: PTOLEMUS
From the US come new models but also
new dangers
• New dedicated channel players: OEM, bCall,
Claims, Aggregators, Actuarial & data houses
• Upcoming disruption from the 2 giants
- Google will enter the insurance market
- Google could acquired an “Indy Dongle”and
integrated its offer with its aggregator capabilities
- Apple adds sensors to its iPhone every year
- Apple has patent to provide e911 calls
• A large number of well-funded B2C2B start-ups
have emerged: Automatic, Mojio and Zubie
- Started to offer a "free" channel to market to insurers
12
3Trends and growth factors - new models and changing ecosystem
Insurers and
service providers
will need to keep a
close watch on how
this market evolve
and be ready to
partner with an
adapted offer

13. PTOLEMUS
Early partnership in the UBI ecosystem
13
• Wide range of functions and price
• Independent dongle providers can
become aggregators
- 2-side model: VAS + UBI sales channel
- Access to car + driver data
- Natural data custodian
• They will require a simplified rating
process - ex: Progressive’s 3 criteria
• Mobile operators are potential allies
but their commitment needs to be
validated
• Car sharing transforms the car into a
service
- Insurers will need to provide specific
covers
Indy dongles are rapidly finding a place in this market
Trends and growth factors - new models and changing ecosystem

14. PTOLEMUS 14
Key factors
We expect over 100 million UBI customers worldwide by
2020
Source: PTOLEMUS UBI Global Study
Global motor insurance premiums from telematics (€ in millions)
0
10 000
20 000
30 000
40 000
50 000
60 000
2012 2013 2014 2015 2016 2017 2018 2019 2020
UBI premium generated - Total market - Worldwide
Europe
North America
Asia - Pacific
LATAM
Africa
1
• Global increase in online insurance
• Regulatory mandates such as Contran 245,
ERA Glonass or eCall
• More connected services and vehicle leading
to better optimisation
• Chain reaction from the first leader
• Since Progressive all US insurers have a
UBI product
• Since Industrial Alliance, 6 other
insurers have followed in Canada
• A new programme every 6 month
appears in Germany
• Generali has announced 2 UBI trials in
Brazil
• 2 brokers announced UBI programmes in
the same month in Australia
Trends and growth factors - the market opportunity
0
5
10
15
20
2012 2013 2014 2015 2016 2017 2018 2019 2020
France
Germany
Italy
UK
Rest of EU 27
Russia
Rest of Europe
New telematics-enabled policies (in millions)
European personal line market

15. PTOLEMUS
Conclusion
UBI is heading towards the mass market.
How to avoid becoming redundant by telematics newcomers?
Thank you!
• Insure you have solid and reliable app’s
development capabilities
• Produce individual and family insurance plans
using pervasive connectivity
• Migrate all insurance customer services on multi-
device platforms
• Reinforce internal IT system and data analytics to
truly leverage telematics-based insurance data
• Constantly monitor the telematics architecture’s
evolution
• Develop strong affinity partnerships with car
makers, automobile clubs, dealerships and other
types of devices
• Export UBI model outside the car to other
connected “Things”
15

16. PTOLEMUS Consulting Group
S t r a t e g i e s f o r M o b i l e C o m p a n i e s
Brussels - Boston - Chicago - Hamburg - London
Milan - New York - Paris - Vienna
thomas@ptolemus.com
www.ptolemus.com
@PTOLEMUS
Thomas Hallauer, Research Director
thallauer@ptolemus.com
+44 7973 889 392

17. PTOLEMUS
PTOLEMUS in a nutshell
Who we are
17
• The 1st
international strategy consulting
firm specialised in telematics and
location-based services
• Strategy combined with real industry
expertise and operational experience
• A focus on achieving results for our
clients
• Close links with the mobility ecosystem
• Presence in 7 countries - Austria, Belgium,
France, Germany, Italy, the UK & the US
from Ptolemy, the
Egyptian savant
who built the 1st
map of the world in
the 2rd century
• Over 20 consultants bringing 160 years of
aggregated experience in telematics, geo-
location & mobility
• 50 assignments completed in last 5 years
• Over $1 million revenues in 2014

18. PTOLEMUS
PTOLEMUS in a nutshell
An international management team
18
Brussels Frederic Bruneteau, Managing Director
• MS. HEC Paris, MS. CEMS University of Cologne
• Background: TomTom, Vodafone, Arthur D. Little, BNP Paribas
• Specialties: LBS, telematics (eCall, UBI, etc.), mobile networks
Frederic Lassara, Senior Expert
• MSc. Management, Marseille Business School, Bachelor of
Laws, University of Aix-Marseille & IHEDN
• Background: PSA Peugeot Citroën, Covisint, Datops
• Specialties: Automotive, telematics
Chicago Valerie Shuman, Senior Expert
• BA with highest honors from the University of Michigan
• Background: Navteq, Ygomi, CVTA, SEI, Verety
• Specialties: Connected vehicle services & content
London Hamburg Meinrad Zeller, Senior Expert
• MS Mathematics & Computer Science, Univ. of Göttingen
• Background: TomTom, Philips Automotive, Philips Semiconductors
• Specialties: Automotive telematics & electronics
Milan Sergio Tusa, Associate Partner
• MBA ISIDA Palermo & Law degree, Palermo
• Background: Magneti Marelli, Cobra, Nokia, Tele Atlas, Philips
• Specialties: Telematics, automotive, mapping
Alex Willard, Director, Global Technology Practice
• BSc. Engineering & Naval Architecture and MSc. Systems
Monitoring & Diagnosis, Southampton City University
• Background: Lysanda, MSX International, Ford, Roush Tech.
• Specialties: Fleet telematics, car monitoring tools
Boston Eric Pite, Associate Partner
• M. Eng., Telecom ParisTech & MBA, London Business School
• Background: TomTom, Motorola, Sendo, Sagem
• Specialties: Consumer electronics, connected vehicle services
Thomas Hallauer, Research & Marketing Director
• BA, International Business, Southbank University London
• Background: Mobile Devices, Telematics Update
• Specialties: UBI, location-based services
Maria Grazia Verardi, Senior Expert
• MSc. Physics, Bologna University
• Background: Cobra Automotive, Delta Electronics, Ylum
• Specialties: Telematics, automotive, R&D in ITS
Vienna Marijan Mumdziev, Senior Expert
• PhD Computing, Univ. Vienna & MBA Univ. Minneapolis
• Background: Deutsche Telekom, Nokia Siemens, Telekom Austria
• Specialties: Mobile telecoms, UBI
Paris
New York

19. PTOLEMUS
PTOLEMUS in a nutshell
PTOLEMUS is the first strategy consulting firm focused on
telematics and geolocation
19
Strategy
definition
Vision creation,
strategic
positioning,
business plan
development,
board coaching &
support
Investment
assistance
Strategic due
diligence,
market
assessment,
feasibility study,
M&A, post-
acquisition plan
Innovation
management
Value proposition
definition, product
& services
development,
architecture design,
assistance to
launch
Business
development
Partnership
strategies,
detection of
opportunities,
ecosystem-
building, response
to tenders
Our consulting services
Procurement
strategy
Specification of
requirements &
tender documents,
launch of tenders,
supplier negotiation
& selection
Implementation
Deployment plans,
complex / high risk
project & program
management, risk
analysis &
mitigation strategy
Usage-based charging
PAYD / PHYD insurance, road charging / electronic tolling,
fleet leasing & rental, car sharing, Car As A Service, etc.
Telematics & Intelligent Transport Systems
ADAS, connected vehicle, crowd-sourcing, fleet
management, eCall, bCall, SVR, tracking, vehicle data
analytics (OBD / CAN-bus), VRM, V2X, xFCD
Positioning / Location enablement
M2M & connectivity
Our fields of expertise
Car infotainment & navigation
Connected services (Traffic information, fuel prices, speed
cameras, weather, parking, points of interest, social
networking), driver monitoring, maps, smartphone
integration, smartphone-, PND- or embedded navigation,

20. 3
PTOLEMUS in a nutshell
We just published the Usage-Based Insurance Global Study,
the most comprehensive report written on the subject
• 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 Canadian, US, Latin
American, 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
Financial Times and The
Wall Street Journal
Note: A free 100-page abstract can be downloaded from www.ptolemus.com/insurance