From Evolution to Revolution

Dr. Ingo A. BlöinkDaimler Insurance Services30th June, 2016

Impact of the “Smart Car” on Insurance Sector

Megatrends

€ 447 billion

13 seconds

est. economic cost of road accidents per year*

occurrence of road death in Germany in 2014**

occurrence of traffic accident in Germany in 2014**

est. number of connected cars in 2020 vs. in 2014***

every

*Source: World Report on Road Traffic Injury Prevention, WHO, 2004**Source: DVS (Deutscher Vekehrssicherheitsrat, 2016)***Source: Goldman Sachs; CrunchBase; Delta Partners analysis

290 million vs. 84 million

Future developments in mobility and vehicle safety in particular will save millions of lives. The economic effect on related insurance business will amount to billions.

Autonomous DrivingCar Sharing

Telematics

Ambient AssistantE-Health

Ageless Consuming

Single EconomyIdentity

VersatilityInternet of ThingsVirtual CurrencyCrowd Funding

Slow Culture

Urban Farming/MiningSmart Cities

E-MobilitySharing Economy

Open Innovation

New MothersStart-Up CultureOn-Demand Business

Trust Economy

Big Data

Cyber Crime

GlocalizationGlobal Cities 5.6 hoursevery

2

Autonomous Driving “…autonomous driving features are already available, while full self-driving automation will be ready by 2025-2030…” *

Assisted Driving Partial Autonomous Driving

“Hands Off” “Feet Off” “Brain Off” “Eyes Off”

Stages

*Source: Roland Berger Report “Autonomous Driving”, Nov. 2014

Cruise ControlDistronic

…

Active Lane KeepingDistronic Plus

Cross-Traffic AssistantPedestrian Recognition

…

Steer AssistLane Keeping

V2V Communication…

Highly Assisted Driving Full Autonomous Driving

Full AutonomousPersonal Assistant

V2V2I Communication…

3

Reduction of Claims

•  Product Liability•  Operator Liability•  Cyber Risks

Opportunities New business model/Customers

•  Mobility Insurance•  Fleet Insurance•  Non-/close-to-insurance solutions

Concentration of competition Exit of market players Reduction in frequency and severity of claimsImpacts

4

“Traditional insurance players have to change their business models and seek new offerings to ensure survival.”

“…an 80% drop in crashes over the next 20 years thanks to so-called ‘autonomous vehicles’…” *

“By 2030, when half of the vehicles have reached full autonomous driving, the total insurance premium could drop by 45%.” **

*Source: Roland Berger Report “Autonomous Driving”, Nov. 2014 **Source: based on a KPMG study “The Future of the German Motor Insurance Industry”, 2015 ***Source: IIHS Status Report 2015

“…an average of 28 driver deaths per million vehicle car in 2012, down from 48 deaths in 2008 model cars…” ***

MOBILITY

More on Insurance Impact

“…own cars but shared with family/friends…” “…no more ownership but only a mobility

fee (oder/pay on-demand vs. flat fee)…”

“…increase in the number of fleets…”

“…less vehicle per household…”

Teaming up/strong integration with Mobility Companies

Change into Mobility Companies

5

“…driverless ‘Pods’ and autonomous vehicles on the rise…”

Sharing Economy

People will focus on

?

M

obilit

y OEM and Mobility Service Providers*

Daimler Financial Services

Daimler Insurance Services Daimler Fleet Management

Mobility Services

End Customers

Eco System

Owne

rshi

p Ownership

M

obility

e.g.

e.g.

6 *Schematic diagram only

e.g.

Mercedes Me

7

Move Connect •  Remote Online services •  Live Traffic Information •  Remote Park Pilot •  …

Assist •  Services •  Warranty & Mobility •  Digital Services Report •  …

Finance •  Financing •  Leasing •  Insurance (UBI/PHYD)

Inspire •  meBlog •  Dialog & Inspiration •  …

•  car2go •  moovel •  Blacklane •  Mercedes-Benz Rent •  …

•  mytaxi •  Flixbus

Today “Mercedes Me” is a unique interactive customer platform that will be expanded for additional “in car” and “out of car” added value services in the future.

(Driverless) Data and Future Services*

Pay-How-You-Drive Insurance

Personal Digital Assistant

Mobility Guarantee

Personalized Products

Travel Insurance

On-Demand Offering

Pay-How-You-Drive Leasing

8 *Schematic diagram only

Mobility Revolutions

9

1st Revolution

2nd Revolution 3rd

Revolution?

@US Patent Office

Backup

Icons: made by Freepik from www.flaticon.comIcon(PHYD Insurance): www.ingenie.com/teenage-car-insurance

Credits