The UBI market today 1

The market for telematic is now global

Europe Canada - The AA - Co-operative - Linear - Desjardins - Admiral - Coverbox - - Industrial Alliance - - Direct Line - Renaissance - AIG - Generali - RSA - - Equity Red Star - Sara - Aurora - - - - Ingenie - Uniqa - - Insure the box - Zurich

US

- AAA - Japan - Am Fam - Aioi Nissay Dowa - Farmers - Sompo - GMAC - - Mapfre - Progressive - Safeco - - Australia - Travelers - AI Insurance - USAA - Insure Box South Africa Mexico - Discovery - MiWay - GNP - Hollard - OutSurance 0 1 2 5 10 20 40

Source: PTOLEMUS UBI Global Study 2013 - Note: The list of insurers is far from being exhaustive 1 The UBI market today

The 5 leading countries are all high premium markets

Penetration of UBI in total auto insurance policies (%)

Share of total auto policies

Time

Source: PTOLEMUS 2 Motor Insurance 2.0

ABI The time has come for insurance telematics publishes good practice guide EC published eCall delegated Insurance telematics has been through the Autoline act to mandate Test- launches st eCall by peak & disillusionment phases Achats 1 2015 gender smartphone ruling solution 1st OEM Amaguiz policies Norwich European launches Launch of st Union Commissio 1 OBD Insure The n decides solution in launches Box in the PAYD offer to mandate Europe Toyota & UK eCall Monti law Aioi launch Norwich implementa PAYD on Launch of Progressive Union stops Towergate Zurich tion Toyota's G- Coverbox reaches 1 PAYD & Aviva launches Book by Cobra M cum. UBI programme launch Fleet Wunelli customers Unipol & PAYD Intelligence OEMs Aurora commercial PHYD offer freeze Progressive launch insurance The AA and eCall launches Octo's NYC & Admiral devices MyRate, solution Qualcomm Massachus launch specs 1st PHYD Groupama launches sets PHYD offer launches Norwich PAYD / investigate offers MAIF & Amaguiz PHYD PAYD Gender Union MACIF PAYD solution models Moody's ruling launches launch system PAYD trial recommend becomes unsuccessf ÖSA launch applicable Progressive Renault s usage- ul telematics renames launches based Progressive telematics offer in MyRate commercial insurance pilots offer Germany TripSense Snapshot line PAYD UBI Discount programme program Unipol trial of Octo's solution

Technology Peak of Disillusionment Enlightenment Maturity trigger expectations

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: PTOLEMUS, based on Gartner's Hype Cycle 3 Insurance telematics Connectivity is changing everything - Numerous players will be tempted to offer PAYD insurance

Connected car services

Navigation & Car OEMs search vendors Telematics Handset service vendors providers Traffic & Resource Social Multimodal other eCall management networking navigation services

Maintenance Stolen Car Voice & Car sharing LBA / LBM vehicle firms maintenance messaging Mobile recovery operators

Energy Road user Financing PAYD / PHYD bCall Power management charging suppliers

Tolling operators Oil & Assistance companies Insurers leasing firms providers

LBA: Location-based Advertising; LBM: Location-based Marketing PAYD: Pay As You Drive insurance; Source: PTOLEMUS 4 PHYD: Pay How You Drive insurance How to make UBI a mass consumer proposition?

A new form factor for mass UBI?

Possible devices for UBI and more…

Digital Battery-powered Speed camera locator Black box OBD dongle PND tachograph modules

Aftermarket Dash Cigarette- camera lighter device Smartphone FMS box Smartwatch DSRC tag

Supplier OEM system Semi-embedded system system Vehicle keys

Line-fitted

Fixed Removable Portable

Source: PTOLEMUS 5 from 1.0 to 2.0 that has to evolve… - certified Hw - standard protocol TSP-TSP - MSD standard - standard protocol Hw vs TSP - standard interoperability and portability process - same hw platform for private, insurance and public interest service

6 Auto Insurance 2.0 2

Insurance telematics brings Auto Insurance 2.0

TODAY 2020

CURE PROTECT & PREVENT High claims ratio High expense ratio Fraud, theft, etc. Driving behaviour advice, eCall / bCall, etc.

OPAQUE & FOCUSED ON THE PAST TRANSPARENT & PREDICTIVE No understanding of actual risks, only of past risks Real-time visibility on risks, crashes, thefts, etc.

DIVERGING INTERESTS ALIGNED INTERESTS "Higher premiums: more profits for the insurer" "Lower premiums, lower claims: more profits for the insurer"

Source: PTOLEMUS 7 A sight on the 2013 study

“A truly comprehensive picture of the UBI market”

• 800 pages of in-depth analysis on the including our own evaluation & ranking UBI market based on • 10-year market forecasts - 200+ interviews in 25 countries - Country's readiness to telematics - 3 years of research performed by 6 consultants - Forecasts for the US, Canadian, LATAM, in 4 countries European, Russian, African, Indian, Chinese - The learnings from 15+ consulting assignments and Japanese markets for insurers, OEMs, TSPs, investors, etc. - Personal line / commercial line - Our experience & vision of the ecosystem incl. - Aftermarket / OEM OEMs and TSPs - 350+ figures (charts, tables, etc.) • Insurer's telematics market model results in 5 markets - 60 relevant patents listed • Case studies & learnings from ALD • A complete set of recommendations to Automotive, Autoline, Allianz, Amaguiz, Carrot, carriers, TSPs, OEMs, MNOs and Coverbox, Discovery Insure, Generali, GM OnStar, governments Hollard Insurance, Ingenie, Insurethebox, LeasePlan, Liberty Mutual, MAIF-MACIF, • A strategic analysis of the value chain The global reference report Norwich Union, Octo Telematics, Progressive, evolution including on the subject, quoted by: Solly Azar, Quindell, State Farm, Unipol, Uniqa, UK aggregators and Google, Young Marmalade, - The impacts of EOBR, eCall, CONTRAN 345, - The Economist Zurich ERA Glonass, the Monti law, the gender ruling, etc. • Detailed profiles of - The Wall Street Journal - The impact of the smartphone - 20 insurance markets - Corriere della Sera - Managing Big Data - 20 leading UBI insurers • A handbook of 45 suppliers' solutions

Note: A free 100-page abstract can be downloaded from www.ptolemus.com/insurance 7