octo: the hub for the telematics ecosystem€¦ · the connected car vision the insurance...

Information presents in this document are highly confidential and cannot be disclosed to any party without prior written consent

octotelematics.com

Smart Mobility World, Turin 2014Giuseppe LemessiHead of Automotive Telematics Services

Octo: The hub for the Telematicsecosystem


Agenda

2

The scenario

The connected car vision

The insurance telematics services

The importance of the customer experience

The business model

The journey


What does the competitive enviroment look like globally

3

(PTOLEMUS 2013 source)


Connected CarVision

4

Information presents in this document are highly confidential and cannot be disclosed to any party without prior written consent5

Roll out of eCall project, expected from 2017, willboost telematics development in automotive industry

5

• Roll-out of e-call project isexpected from 2016

• Only new type approval vehicles

will have to be equipped with telematics

• Average age for European vehicleparc was 8 years in 2010

– Germany: ~8 years– Italy : ~9 years– Spain : ~9 years

• Telematics is expected to be fullypenetrated after 2025(depending on car park renewalprocess duration)Time

World OEMtelematics equipped

vehicles

2016 >20252012

Advent ofeCall

~46 mn2

Effect ofeCall project

in Europe

Natural growthexcluding

external factors


Connected Car: the overall vision

6

Increased significance of

everyday connectivity

Car has to enter our digital life

Car as a piece of HW and SW

Let the car become an “on

line store”Update OTA new features/services

vehicle related


Connected Car: the option space

7

IN-CAR ENTERTAINMENT

SOLUTIONS• Music streaming• Social media

VALUE ADDED SERVICES

• Enhanced navigation• Parking services• Remote car unlock

CUSTOMER ADVENTURE

INTERNAL USAGE• CRM• Remote diagnostics• VRM

EXTERNAL MODELS• Rental services• PAYD / PHYD• Data brokerage

NEW BUSINESS MODELS


European market : % of OEMs offering or planning to offer each type of telematics services

8

Per

cent

age

(%)

0

10

20

30

40

50

60

70

80

90

100

Offered Planned

(SBD OE Guide Q3 2014 source)


European market forecast: new connections fitted to cars

9

N°

new

con

nect

ions

(00

0)

(SBD OE Guide Q4 2013 source)

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

16.000.000

2013 2014 2015 2016 2017 2018 2019 2020

Embedded

Tethered

Smartphone


10

1+1 = 3

Insurance Telematics Services


DYNAMIC RECONSTRUCTION

OF CRASH

PROACTIVE ROAD ASSISTANCE

STOLEN VEHICLE RECOVERYSECURITY SAFETY UBI

DRIVING BEHAVIOUR

DRIVING STYLE

WHEREWHEN

DURATIONHOW LONG

HARSH BRAKINGSHARSH ACCELERATIONS

CORNERINGSPEEDING

11

CLAIM



UBI

DRIVING BEHAVIOUR

DRIVING STYLE

WHEREWHEN

DURATIONHOW LONG

HARSH BRAKINGSHARSH ACCELERATIONS

CORNERINGSPEEDING

6

SAFETY CLAIMCrash

Crash notification (via mail/ fax/ e-mail)

2- 10 days

1- 2 days

Documents receipt and claim opening

Crash report automatic receipt simultaneously(with respect to crash

notification)

Call Center contact to open claim

immediately (or new contact within max

2 days)

Expert involvement and damage evaluation

Less than 10 days

Settler involvement, payment and claim

closing

Settlement payment and claim closing

5-10 days 5-10 days


(optional): in case of anomalous statistics

and / or high-value claims

Traditional approach

New proactive approach

Average days to settle claim:

25-30 days


<10 days

FNOL




6

Crash

Crash notification (via mail/ fax/ e-mail)

2- 10 days

1- 2 days

Documents receipt and claim opening

Crash report automatic receipt simultaneously(with respect to crash

notification)

Call Center contact to open claim

immediately (or new contact within max

2 days)


Less than 10 days

Settler involvement, payment and claim

closing

Settlement payment and claim closing

5-10 days 5-10 days


(optional): in case of anomalous statistics

and / or high-value claims

Traditional approach

New proactive approach


25-30 days


<10 days

FNOL

UBICLAIM

Client Segmentation

Customer Loyalty

Tutoring Effects

Tailored Tariffs

Shaping Predictable Patterns based on scoring

CLAIM &

CRASHES

UBI

SCORING

SCORING

http://www.google.it/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=WswnQc9S4eFSPM&tbnid=o-JV4C3s2l0AsM:&ved=0CAUQjRw&url=http://www.123rf.com/stock-photo/loyalty.html&ei=wopSUr3RF4qt0QXtkoDwBA&bvm=bv.53537100,d.bGE&psig=AFQjCNHPEP3npNG-K2iwdA6qudNXWQwfHA&ust=1381227559647807

http://www.google.it/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=WswnQc9S4eFSPM&tbnid=o-JV4C3s2l0AsM:&ved=0CAUQjRw&url=http://www.123rf.com/stock-photo/loyalty.html&ei=wopSUr3RF4qt0QXtkoDwBA&bvm=bv.53537100,d.bGE&psig=AFQjCNHPEP3npNG-K2iwdA6qudNXWQwfHA&ust=1381227559647807

http://www.google.it/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=RXUtMIDhQLOpFM&tbnid=G5NkH-eqcWLoRM:&ved=0CAUQjRw&url=http://www.rildosan.com/&ei=dzBTUemPHYaYPYaRgcAN&bvm=bv.44342787,d.Yms&psig=AFQjCNGEseYvltoMvAUkzpIk5VTWskGXZQ&ust=1364492471369258

http://www.google.it/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=RXUtMIDhQLOpFM&tbnid=G5NkH-eqcWLoRM:&ved=0CAUQjRw&url=http://www.rildosan.com/&ei=dzBTUemPHYaYPYaRgcAN&bvm=bv.44342787,d.Yms&psig=AFQjCNGEseYvltoMvAUkzpIk5VTWskGXZQ&ust=1364492471369258


Telematics delivers far more than Crash, Claims and Pricing advantage…

365

OncePer hour

1

Ho

w im

po

rtan

t is

it?

Self-actualization

Self-esteem

Safety

Love/Belonging

PhysiologicalSuper

-market

Real EstateAgent

Bank

Dentist

Telematics Auto

Insurer

Doctor

Auto Insurer

UtilitySupplier

Home insurer

Hair-dresser

Search Engine

Mobile Operator

Credit Card

Provider

Number of contacts per year


Big Data is coming to Insurance

(PTOLEMUS 2013 source)


16

The Business Model


Connected car: the main different types of connected services

18

UBIINFOTAINMENT

MAINTENANCE

PPU/PAYDNAVIGATION

CONVENIENCE

SUSTAINABLEMOBILITY

FLEET MANAGEMENT

SAFETY

SECURITY

TRAFFIC

ROAD CHARGING

DRIVER

VEHICLE

INSURANCE

AUTOMOTIVE


20

Connected car: automotive & insurance connected services

AUTOMOTIVE INSURANCE

UBI

PPU/PAYD

SAFETY

SECURITY

TRAFFIC

MAINTENANCE

NAVIGATIONCONVENIENCE

SUSTAINABLEMOBILITYINFOTAINMENT

Insurance current Telematics services OEMs current Telematics services


How Octo’s strategy helps insurers and OEMs business

21

Octo as a Telematics Service Provider links togethermultiple Insurers and OEMs managing data and revenuesexchange in a sustainable profit growth scenario


The Journey


172,687 new customers in a month

12 years of flawless execution in the Insurance Industry

135 billion data points analyzed to deliver insight to our partners

As at 30.09.2013

Founded in 2002, Octo is the largest Insurance Telematics provider in the world with more than 3 Million Active Customers on the Road.

118,000 data points recorded, processed and stored every minute

Octo


millionactive customersSeptember 2014

“If you want to go fast, go alone.If you want to go further, gotogether”

Thank you for your attention