Building the Next Generation IoT & Telematics Platform
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The document discusses the transformation of the insurance industry through IoT and telematics, highlighting the increasing belief among insurance executives that IoT will significantly impact their industry in the near future. It presents the challenges faced by insurers in implementing IoT-based offerings and showcases Octo Telematics as a leading provider in this space, with extensive data collection and advanced analytics capabilities. The presentation emphasizes the potential of IoT to enhance customer engagement and risk management in the insurance sector.
Building the Next Generation IoT & Telematics Platform
- 1. 1© Cloudera, Inc. All rights reserved. Building the Next Generation IoT & Telematics Platform WEBINAR
- 2. 2© Cloudera, Inc. All rights reserved. Your Speakers for Today… Jonathan Hewett Chief Marketing Officer Charles Juniper Principal Analyst
- 3. 3© Cloudera, Inc. All rights reserved. Connected Car Insurance Solution of the Year Winner – IoT Breakthrough Awards - 2018
- 4. Ovum | TMT intelligence | informa4 Copyright © Informa PLC Today’s Insurance Proposition ‘Bucket’ & Opaque Pricing Multiple Policies Annual Renewal Disconnected From Insured Items Infrequent Communication Inefficient Claims ‘Pay to clear up the mess !!’ The IoT-Based Insurance Proposition Insurance as a Utility Pre-emptive Risk Management Value-Added Dialogue Automated Claims ‘Avoid the mess in the first place’ The emerging IoT insurance proposition
- 5. Ovum | TMT intelligence | informa5 Copyright © Informa PLC 25% 40% 23% 12% 38% 26% 25% 10% Transform the industry Significantly change the industry Some change Very little change Transform the industry Significantly change the industry Some change Very little change Two thirds of senior insurance executives believe IoT will significantly change the industry in the next three years. Mature markets Emerging markets ‘What do you believe the impact of IoT, telematics or wearable sensors will be on the insurance industry in the next three years? n = 474 insurance senior executives (September 2017)
- 6. Ovum | TMT intelligence | informa6 Copyright © Informa PLC IoT is changing the competitive dynamics of the insurance industry 8% 10% 10% 13% 13% 14% 17% 18% 33% 25% 27% 22% 31% 37% 35% 39% InsurTechs Utilities Telco Security Co's Vehicle Manf. Other FSI's GAFA* Other insurers Major Competitive Threat Competitive Threat * GAFA: Google, Amazon, Facebook & Apple ‘What level of competitive threat do the following types of organization present to your company when it comes to offering IoT, telematics or wearables-based insurance products?’ n = 474 insurance senior executives (September 2017)
- 7. Ovum | TMT intelligence | informa7 Copyright © Informa PLC 25% 22% 25% 20% 21% 21% 21% 18% 20% 19% Insurers face a broad set of challenges when implementing IoT insurance offerings ‘What are the most significant challenges preventing your organization implementing IoT-based insurance offerings?’ >$5Bn DWP <$5Bn DWP n = 474 insurance senior executives (September 2017) Overall complexity Ensuring data security Ensuring compliance Obtaining meaningful insight from IoT data Data collection
- 8. 8Octo Telematics |© 2018|Confidential 8Octo Telematics |© 2018|Confidential Octo in Numbers Note: As of 31 December 2017. Estimated market data from Ptolemus Consulting Group; total addressable market data relates to a study commissioned by us. The world’s leading insurance telematics provider #1 Globally 40% Market Share $33bn User-Based Insurance TAM 5,4 Mln Connected Users 25% Growth in Connected Users y-o-y >100 Industry Partners 15 years Operating History 186bn Miles of Driving Data 438k Crashes Analyzed
- 9. 9Octo Telematics |© 2018|Confidential 9Octo Telematics |© 2018|Confidential What we do Collecting over 2,000 parameter combinations Road Type Distance Collision Direction Location Cornering Braking Duration Comprehensive set of real-time driving data from connected cars… Data collection Software, data and analytics • Raw data is processed into actionable intelligence • Risk correlation and actuarial capabilities support industry leading driver scoring models and pricing algorithms …feeding into a proprietary analytics platform… Advanced analytics Insurance Solutions Claim Management Crash Reconstruction Pricing Services Emergency Call Stolen Vehicle Recovery Risk Assessment Digital Solutions …transforming auto insurance with our telematics solutions… Insights for insurance companies CONTINUOUS INNOVATION
- 10. 10Octo Telematics |© 2018|Confidential 10Octo Telematics |© 2018|Confidential
- 11. 11Octo Telematics |© 2018|Confidential 11Octo Telematics |© 2018|Confidential NGP is the combination of unique advance analytics and best of breed of insurance experience… • Pooled data including claims and policy • Second by second approach • Driveability score filed in 39 US States Typical Approach Our Approach DriveAbility Score & Components Billions of miles of granular telematics data External data Claim and policy data Predictive analytics ? Crash • Analytics 3D risk model • Using crash as target variable • Covering Insurance life cycle policy • Innovative ML techniques • High level of granularity and prediction • Performed across OBU and Smartphone data providing feed back tips Behaviours Habits Context Scoring Algorithm ROC max ROC cf ROC NSTAR ROC FFT Crash Roc Curve Possible optimal workingpoint at TPR= 93%, FPR= 7%, all filters cooperating FPRreduction after the introduction of the optimal combiner logic. Claims 1. Crash confirmation with 1MM of analysed events; 2. 10Kof Claims Data used to train the model. NGP 1.O NGP 2.0
- 12. 12Octo Telematics |© 2018|Confidential 12Octo Telematics |© 2018|Confidential ..and is game-changing along the insurer’s entire value chain Technical pricing Policy underwriting Portfolio management Claims management Reserving Risk management Disruptiveinnovationdegree Consolidated market practice/ established use cases Assessing claims settlement based on accident dynamics data Implementing driver’s score-based portfolio pruning Reducing variability in the best estimate liabilities/SCR by enhanced prediction of ultimate claims cost Enhancing current business model Suggesting best product to buy based on driver’s habits (e.g., deductibles, additional benefits) Enhancing motor technical pricing (incl. severity) Consulting support Portfolio optimization Enabling new profit levers Feedback to drivers Effective reward programs Innovative products: • Pay per use • Real time risk score based New business opportunities based on carrier data Forecasting claim size Driver identification/Distr acted Driving
- 13. 13Octo Telematics |© 2018|Confidential 13Octo Telematics |© 2018|Confidential Platform architecture Partner ecosystem End User Insurance Partner Long-term Rental Partner Universities & Research Dealer / Installer Service Control Room Outsourced Logistics Auto OEM User Interface Marketing, Sales, Contact, Services API Gateway ERP System 3rd Party Device Service Orchestrator Telematics Platform Data Streaming & Service Inventory Octo Device Telematics Data Store Geospatial System Analytics Engine Telematic Device Management 3rd Party Device Other Vertical Devices (Home, etc.) IoTHub Digital CRM
- 14. 14Octo Telematics |© 2018|Confidential 14Octo Telematics |© 2018|Confidential The platform at the end of migration Octo’s platform overview – platform evolution and migration Customers Mobile Apps Insurance Companies IoT Devices API Portal Developer Portal API Lifecycle FORCE Product Catalogue Security & Assistance Customer Contract & Order Call Center & Trouble Ticketing SMS/Mail End-User contract & order Field services Community Cloud End Users & Operations Mgmt Invoice & Billing Data View End User Control Mgmt Scoring Data View Device & Service Data View Report & Dash- boards Ticket & Claim API Gateway On line integration MFT Batch integration ESB BAM Integration Platform BPM IoT Hub SM S UD P MQT T HTP MultiProtocolMgmt Security Telematic platform mgmt Device Management Technical Service Catalogue Device & Service Inventory Telematic data Telematic Data Store Data Lake Business Analysis Scoring & Risk index Billing Logistic Customer & service data Service KPI DWH Telematic Platform Engine Crash & Claims SVR Trip points Eco Driving OtherGIS Traffic Meteo Octo Algorithm Pattern Identification Real Time Analysis Data Streaming Event Management CEP
- 15. 15Octo Telematics |© 2018|Confidential As an IoT Platform, NGP enables cross vertical integration IoT Platform moves focus from product view to the customer view (multi-vertical) Cross-Vertical use cases enabled to have an enhanced customer engagement for risk profiling and event management (Crash, home alert etc…)
- 16. 16Octo Telematics |© 2018|Confidential Delivering Business Impacts from NGP 186 Billion Miles World’s Largest Insurance Telematics Database 11 Billion Data Points/ Day 50% Reduction in Time to launch UBI 5.4 Million Connected Cars New Product Capabilities
- 17. 17Octo Telematics |© 2018|Confidential 17Octo Telematics |© 2018|Confidential NGP Unique Relevance to Support Business Value from Telematics Flexible to integrate new insurance verticals IoT Platform opens to integrate 3rd party sensors Multi-vertical and enable to correlate events from different vertical to build a unique customer experience Time to deliver Platform Configuration - Easy to configure new telematics offer by leveraging on service catalogue and orchestration of provisioning process Enhanced and managed customer experience Ease-to-integrate with customer’s IT system Data availability and relevance Granular data in near real-time Large spectrum of sampling rate for position and driving behaviour events Improved business outcomes Availability of scoring algorithms based on extended data base High performance and enriched data for improving crash management Fast prototyping of new services and open architecture for ecosystem Development Environment for customer or other SI engaged for designing new services on NGP
- 18. 18© Cloudera, Inc. All rights reserved. To learn More… Download the Ovum Case Study: Building Flexible and Scalable Data Platforms How Octo Telematics implemented a next- generation IoT and telematics platform https://www.cloudera.com/content/dam/www/marketing/resources/case-studies/ovum-cloudera- case-study.pdf.landing.html
- 19. 19© Cloudera, Inc. All rights reserved. Thank you Questions?