Presented at ORBiT Real Time Days 2014 Panel discussion by: Debbie Olsen, Quindell Clinton D'Souza, CGI Blair Currie, IMS Paul-Andre Savoie, Baseline Telematics Patrick Vice, Frank Cowan A well-constructed panel of experts unravel the mystery of telematics for us. We need to understand why this will be important for our customers, what will be the impact on brokers and what we as insurance experts need to know.

1. TELEMATICS
Debbie Olsen, Quindell
Clinton D’Souza, CGI
Blair Currie, IMS
Paul-Andre Savoie,
Baseline Telematics
Patrick Vice, Frank Cowan
www.orbitcanada.ca

2. What Brokers Need to Know about Telematics
ORBIT Education Days

3. List of Slides
• How it works – the variety of technologies
• What it is – the variety of offers & solutions
• Why does insurance care so much?
• Why it’s important to you – the future

4. How it works – 7 Steps (Device)
1. Receive
Device
3. Configure SIM
Card in Device
via Text (SMS)
4. Insert configured
Device into
vehicle OBD port
5. Raw Data
transmits
automatically
and directly
6. To secure data
servers in the cloud
for processing
7. Results:
Secure
Private
User
access
24/7
to online portal results via any device.
2. Insert 3G SIM Card
with Mobile Bill Plan
for data and text

5. 5
The Potential to Turn Underwriting on its Head
Description Mnemonic Value ANSI
GPS position report (“breadcrumb”) GEO_LOCATION 0x0121 DATETIMEGPS
Start of trip (engine on or hybrid powering drive-train) TRIP_START 0x0122 TRIPSTART_ODO
End of trip (engine off or hybrid no longer powering drive train) TRIP_END 0x0123 TRIPEND
Idle time (zero speed concurrent with non-zero RPM) IDLE 0x0124 INTDATETIMEGPS
Geofence boundary crossing GEOFENCE 0x0126 HEADING or FOOTING
60-80 second pre-collision data for RPM, SPEED and THROTTLE
(for accident reconstruction)
BLACK_BOX 0x0128
Time accumulated in each of 4 speed bands (per trip) MULTI_THRESHOLD 0x0129 MULTI_THRESHOLD
Fuel consumption SAE_FUEL 0x002F INTDATETIMEGPS
Longitudinal acceleration/deceleration (includes collision
detection)
OID_ACCEL_LONG 0x3801
INTDATETIMEGPS
64_DATETIMEGPS
Lateral acceleration/deceleration (hard cornering, hard
acceleration and hard braking)
OID_ACCEL_LAT 0x3802 INTDATETIMEGPS
Vertical acceleration/deceleration (rough road detection) OID_ACCEL_VERT 0x3803 INTDATETIMEGPS
Battery voltage level OID_SAE_BATTERY 0x600A ASN1_BYTE
Odometer OD_SAE_ODOMETER 0x6050 32_DATETIMEGPS
Vehicle Identification Number (reported only once at boot-up, if
available)
OID_SAE_VIN 0xE082 OCTSTR

6. Public Telematics offers in the Canadian Auto P&C industry
Company In Production Announced Solution Provider Comments
Industrial Alliance –
captive agent
 Baseline Telematics True UBI, PP, but PLPD and Quebec only
Desjardins – direct
The Personal - direct
 iMetrik
Discount only; PP, Customers may not be
faithfully installing the devices
CAA - direct  Quindell Non-insurance - Roadside assistance
IBAO - broker  Quindell
Discount only; offered under nda to multiple
insurers
The Co-operators –
captive agent
 IMS Discount only; PP, just launched
Ingenie – is a brokerage

Quindell
Targeted Young driver program as in the U.K.,
PP
SGI - broker
 Baseline Telematics
Safer Roads ; motorcycles
Intact – broker
Belair - direct
 OCTO Discount only; just launched
6

7. 7
Why is Telematics in P&C hotter than ever?
Source: Fergusson, D., Swain‐Campbell, N., & Horwood, J. (2003). Risky driving behaviour in young people: prevalence,
personal characteristics and traffic accidents. Australian and New Zealand journal of public health, 27(3), 337-342.
Usage and Behaviour
Correlate with Incident
Frequency
Transportation research board (TRB) in 2007
Washington meeting: “exposure to the feedback
generated over 40% reduction in crash rates”
http://www.oryarok.org.il/webfiles/audio_files/072173_Musicant_Lotan_Toledo.pdf

8. 8
Dynamic Geofencing
• Boundaries drawn where
there is street-level access
to GPS satellites
• On-board device detects
when vehicle crosses
boundary
• Boundaries can be
changed at any time
• Can be used to evaluate
U.S. or out-of-province
exposure

9. The global marketplace is ready for widespread
adoption of UBI
Percentage interested in UBI
9
80% 50%51%52%69%
ITALY SPAIN FRANCE GERMANY USA

10. Why it’s important – the future
The Internet of Things

11. Telematics
1 Do you think telematics is here to stay and
why?
2 Is telematics a personal lines only solution?
3 What opportunities and threats do you think
telematics creates for brokers?
4 Will the data be “portable” enough for a broker
to qualify for a telematics discount
immediately with the new company?

12. Telematics
5 This refers to privacy and consent; who
controls what data is being collected and can a
client say “give it back”?
6 How can brokers bring value in a Telematics
world?
7 How different will the pricing be for Telematics
clients?
8 How will brokers explain the different options
to consumers?

13. Telematics
9 When a telematics client calls in for a quote,
what will be involved for a broker get a rate for
them with multiple carriers?
10 Will all clients have to go to Telematics to
ensure a competitive price?
11 How has the Telematics worked in a broker
environment in other areas?
12 How does the data that is collected get to my
BMS?

14. Telematics
13 How will I know if my client is using
Telematics so that when they want a quote
to do a change of vehicle, I will know how
to quote them?
14 What do you think is next?