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Insurance Telematics in Europe and North America

  • June 2016
  • -
  • Berg Insight AB
  • -
  • 190 pages

Insurance Telematics in Europe and North America is the second strategy report from Berg Insight analysing the latest developments on the insurance telematics market This strategic research report from Berg Insight provides you with 190 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions

Highlights from this report:

Insights from 30 new executive interviews with market leading companies
Comprehensive overview of the insurance telematics value chain and key applications
In-depth analysis of market trends and key developments
Case studies of more than 40 insurance telematics initiatives
Summary of the involvement of vehicle OEMs and mobile operators New data on vehicle populations in Europe and North America
Market forecasts by country lasting until 2020

This report answers the following questions:

What types of insurance telematics products are offered on the market?
Which are the leading providers of insurance telematics technology?
What business models are available for insurers entering the insurance telematics space?
Which are the most successful insurance telematics programs today?
How are mobile operators approaching the insurance telematics market?
How are the vehicle OEMs involved in the ecosystem?
Which are the major drivers and barriers for insurance telematics adoption?
Which are the key future trends in the industry?

How will the insurance telematics markets develop in Europe and North America?

The integration of telematics technology constitutes the latest revolution for the automotive insurance industry The concept of telematics is a portmanteau of telecommunications – long-distance communication – and informatics – the science of information Telematics in general thus refers to the collection of information related to remote objects such as vehicles via telecommunication networks

The introduction of telematics technology in the context of automotive insurance is commonly referred to as usage-based insurance (UBI) or insurance telematics Solutions of this type generally enable automotive insurers to improve pricing mechanisms based on actual driving data, gain better control of claims and differentiate their offerings to current and prospective policyholders Variants of insurance telematics which have been popularised over the years include behaviour-based pricing models such as Pay-As-YouDrive (PAYD), Pay-How-You-Drive (PHYD) and Manage-How-You-Drive (MHYD)

The addressable market for insurance telematics is significant A total of around 282 million vehicles were in use in EU23+2 in 2014, including over 246 million passenger cars In North America, an estimated total of around 276 million vehicles were in use in 2014, out of which passenger cars and light trucks are estimated to represent almost 263 million vehicles Some kind of basic automotive insurance is mandatory in most developed countries and there are moreover a number of subcategories of insurance that provide coverage for different types of unforeseen events involving motor vehicles Motor gross written premiums in EU23+2 reached a total of over € 125 billion in 2014 The equivalent number for North America was US$ 215 billion (€ 162 billion) in 2014



Table Of Contents

Insurance Telematics in Europe and North America
Table of Contents i
List of Figures vii
Executive summary 1
1 The automotive market 3
11 The automotive market in Europe 3
111 Vehicles in use and car density 3
112 New car registrations and leading manufacturers 7
12 The automotive market in North America 7
121 Vehicles in use and car parc density 7
122 New car registrations and leading manufacturers 8
13 Automotive insurance 10
131 Basic insurance terminology and categorisations 10
132 The fundamentals of automotive insurance 11
133 Traditional automotive insurance risk rating and pricing criteria 12
134 Developments of the actuarial toolbox for motor insurers 14
14 The European automotive insurance market 17
15 The North American automotive insurance market 17
2 Insurance telematics solutions 19
21 Introduction to insurance telematics 19
211 The rationale for telematics-based insurance policy pricing 19
212 Brief history of insurance telematics offerings 21
22 Usage-based insurance and related concepts and applications 22
221 Manual reporting 23
222 Usage-based insurance telematics - PAYD, PHYD, MHYD, TBYB 23
223 Continuous and time-limited telematics data recording 27
224 Usage-based pricing vs claims-related insurance telematics 29
225 Personal lines and commercial lines insurance telematics 30
226 Value-added services related to insurance telematics 31
23 Insurance telematics infrastructure 33
231 Vehicle segment 35
232 Insurer segment 42
233 End-user segment 45
234 Network segment 47
235 GNSS segment 50
24 Business models 52
241 In-house development 52
242 Leveraging telematics partners 53
243 Underwriting without direct client interaction 53
3 The European insurance telematics market 55
31 Regional market characteristics 55
311 Italy 55
312 United Kingdom 56
313 Spain 58
314 Austria 59
315 France 59
316 Benelux 60
317 Switzerland 61
318 Scandinavia 61
319 Germany 63
3110 Eastern Europe 65
32 Insurance telematics case studies 65
321 Italian insurer UnipolSai has an installed base of 26 million blackboxes 66
322 Generali acquires MyDrive and has reached 920,000 telematics policies 67
323 Allianz's dedicated Telematics subsidiary serves several European operations 69
324 Insure The Box has sold 625,000 blackbox-based policies in the UK 72
325 Direct Line grows rapidly in the UK and has 78,000 active UBI policies 75
326 Aviva Drive app has reached 550,000 downloads in the UK 76
327 UK-based Ingenie adds Highway Insurance to its panel of underwriters 76
328 Towergate's iKube policies are powered by TomTom Telematics 77
329 Fiat and Volkswagen works with Carrot Insurance and Trak Global 78
3210 Marmalade has over 50,000 customers in the UK 80
3211 RSA has launched UBI programmes in the UK, Canada and Norway 81
3212 Coverbox starts using windscreen trackers and mobile app 82
3213 Autoline launches Chillidrive powered by Lightflows 83
3214 Citroën pilot used standard-fitted telematics solution powered by Teletrac 83
3215 BMW's ConnectedDrive enables UBI powered by Allianz in the UK 84
3216 Renault-Nissan Alliance partners with The Floow 85
3217 Daimler Financial Services runs PHYD pilot programme 85
3218 German insurer Signal Iduna launches UBI based on TomTom OBD device 86
3219 Telefónica moves to smartphone-only solutions 88
3220 UNIQA SafeLine powered by Dolphin Technologies has a focus on safety 88
3221 Groupama in France has launched PHYD insurance 89
3222 Chipin has 5,000 insurance telematics end users on the Dutch market 91
3223 Spanish MAPFRE Group has also launched insurance telematics in the US 92
3224 ÖSA and Sparkassen Versicherung offers eCall services in Germany 93
3225 GDV launch eCall service with 46 participating German insurers 93
3226 Zavarovalnica Triglav works with Amodo to bring UBI to Eastern Europe 94
3227 Scope Technologies and Eucon team up to launch pilot with HDI Global SE 94
3228 AXA focuses on recording crashes in Switzerland 95
3229 Telia Company introduce cloud-based connected car platform 96
3230 Paydrive offers UBI in Sweden 97
4 The North American insurance telematics market 99
41 Regional market characteristics 99
411 United States 99
412 Canada 100
42 Insurance telematics case studies 101
421 Progressive has reached 40 million cumulative participants in the US 102
422 State Farm transitions to smartphone solution using a Bluetooth beacon 105
423 Allstate has reached 10 million active UBI policyholders 106
424 Esurance announced the DriveSense mobile app in June 2016 109
425 Desjardins offers smartphone app for insurance telematics in Canada 110
426 Toyota and Aioi Nissay Dowa form telematics insurance services company 111
427 iA Financial Group's Canadian UBI offer Mobiliz is powered by Baseline 111
428 Telogis has partnered with Travelers and Liberty Mutual for fleet insurance 112
429 Sprint's ecosystem of UBI expert partners includes IMS and Modus 114
4210 True Mileage uses NFC technology, works with Ohio Mutual Insurance Group115
4211 VOXX's Car Connection dongle now also supports insurance telematics 115
4212 Spireon adds insurance telematics to its NSpire platform 116
4213 OnStar joins Verisk Telematics Data Exchange 117
4214 Samsung enters the telematics market by launching Samsung Connect Auto118
4215 Intact has sold 230,000 UBI policies in Canada and invests in Metromile 119
5 Market forecasts and trends 121
51 Market analysis 121
511 Insurance telematics policies and penetration in Europe and North America 122
512 Form factor developments in Europe and North America 125
52 Value chain analysis 128
521 Insurance industry players 129
522 Telematics industry players 131
523 Automotive industry players 135
524 Telecom industry players 138
525 IT industry players 141
526 Mergers and acquisitions in the insurance telematics space 142
53 Market drivers and barriers 146
531 Macroeconomic environment 147
532 Regulatory environment 148
533 Competitive environment 150
534 Technology environment 151
54 Future industry trends 152
541 Continued broadening of the insurance telematics concept is expected 153
542 Insurers will embrace both UBI and claims-related insurance telematics 153
543 Form factor shift to favour mobile devices in the short term 154
544 Connected cars pave the way for mass-marketisation of insurance telematics 155
545 New data exchanges expected to make OEM data available to small insurers 155
546 Commercial applications to grow alongside personal lines insurance telematics156
547 Privacy concerns are softening across customer segments 156
548 Big Data: Ownership and portability of telematics data to be scrutinised 157
549 Autonomous cars alter the playing field for motor insurance 157
6 Company profiles and strategies 159
61 Agero 159
62 Agnik 159
63 Baseline Telematics 160
64 CalAmp 161
65 Cambridge Mobile Telematics 162
66 CCC Information Services and DriveFactor 163
67 Dolphin Technologies 164
68 Geotab 165
69 Hubio 166
610 IMETRIK Global 166
611 Intelligent Mechatronic Systems 167
612 LexisNexis and Wunelli 169
613 Meta System 170
614 Modus 171
615 MyDrive Solutions 172
616 Octo Telematics 172
617 Quartix 176
618 Scope Technologies 177
619 Teletrac Navman 178
620 Telogis 178
621 The Floow 178
622 TomTom Telematics 179
623 Trakm8 180
624 TrueMotion (Censio) 180
625 Verisk Analytics 180
626 Vodafone Automotive 181
627 Willis Towers Watson 183
628 Zurich Fleet Intelligence 183

Glossary 185
Index

List of Figures

Figure 11: Vehicles in use (EU23+2 2014) 4
Figure 12: Passenger car density per 1,000 inhabitants (EU28 2013) 5
Figure 13: Passenger car registrations by manufacturer (EU28 2015) 6
Figure 14: Vehicles in use (North America 2014) 8
Figure 15: Passenger car registrations by manufacturer (North America 2015) 9
Figure 16: Motor insurance statistics (EU23+2 2014) 16
Figure 21: Distribution of fatal crashes by day of week and time of day (US 2014) 20
Figure 22: Subcategories of usage-based insurance and insurance telematics 22
Figure 23: Schematic classification of usage-based and claims-focused insurance telematics 30
Figure 24: Insurance telematics infrastructure overview 34
Figure 25: Examples of principal insurance telematics form factors 35
Figure 26: Examples of feedback from Desjardin's smartphone app Ajusto 38
Figure 27: Example of a windscreen-mounted Bluetooth device from CMT 40
Figure 28: GDV-Stecker 12 V device 41
Figure 29: Schematic insurance telematics risk rating process 43
Figure 210: Web- and smartphone-based interfaces and dashboards for end-users 46
Figure 211: Mobile network operators in Europe and North America (2016) 48
Figure 212: Mobile operators in Europe by M2M subscriber base (Q4-2014) 49
Figure 213: Mobile operators in North America by M2M subscriber base (Q3-2015) 50
Figure 214: Telematics strategies for insurance providers 52
Figure 31: Growth of insurance telematics at Generali (2012-2015) 68
Figure 32: Overview of the Your Portal interface for insurethebox policyholders 74
Figure 33: User interface and OBD device of Sijox's AppDrive powered by TomTom 87
Figure 34: Chipin's OBD device 91
Figure 41: Progressive's Snapshot OBD-II telematics device supplied by Xirgo 103
Figure 42: State Farms's Bluetooth-beacon enhanced smartphone app 105
Figure 43: Growth of Allstate's UBI offer Drivewise (2011-2015) 107
Figure 44: Growth of Esurance's UBI offer DriveSense (2011-2015) 109
Figure 45: Schematic overview of Metromile's coverage for Uber drivers 120
Figure 51: Insurance telematics policies and penetration (Europe 2015-2020) 122
Figure 52: Insurance telematics policies and penetration by region in Europe 123
Figure 53: Insurance telematics policies and penetration (North America 2015-2020) 125
Figure 54: Insurance telematics policies by country (North America 2015-2020) 125
Figure 55: Distribution of insurance telematics form factors (Europe 2015-2020) 126
Figure 56: Distribution of insurance telematics form factors (North America 2015-2020) 127
Figure 57: Key players in the insurance telematics value chain 128
Figure 58: Examples of telematics hardware providers serving the insurance space 134
Figure 59: Examples of mobile operator partnerships in the insurance telematics space 138
Figure 510: MandAs in the insurance telematics space (2014-2016) 144
Figure 61: Octo Telematics' end users by country (March 2015) 173

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