Dr. Mateusz Maj Evangelist & Marketing Actuary

UBI: a report from the battlefield our Benelux experience

Business model

Value proposition

Privacy concerns

Regional difference between drivers and customers

UBI – INSURANCE TELEMATICS UBI programs are still lacking traction

ONE STOP SHOP PROGRAM – VITALITY PROGRAMS

•  Tangible value proposition through loyalty

program (discounts, cash-backs, rewards);

•  Viable business model through successful

ecosystem with multiple partners, where

rewards are offered by partners;

•  Vitality program – self-funded program

providing lower claims and higher customer

retention.

FUTURE OF INSURANCE – RISE OF ECOSYSTEMS

VIVADRIVE Build your own successful loyalty program

VivaDrive is a Platform-as-a-Service (PaaS) solution that allows car insurers and car leasing companies to build

comprehensive, cost-efficient and engaging loyalty programs for their drivers and customers.

VivaDrive is bringing to the insurance industry lower customer acquisition and retention cost, brand loyalty improvement and claims reduction.

VIVADRIVE Community-driven magic formula

Stay away from ‘price wars’ and focus on more efficient ‘value wars’

1. PROFILING & FEEDBACK Use our personal driving coach and have all

the insight to become a better driver

2. GAMIFICATION & REWARDS Driver engagement through game

dynamics & personalized rewards

3. COMMUNITY Connect with other drivers. Share personal experience. Benefit from the community.

VIVADRIVE Boost your business thanks to data - 360° driver & customer profile

Lukas Janssens (lukas@mail.com)

23 years old Leuven (BE) Newly graduated 4 years First policy 2013 1 car accident Volkswagen Polo

15 completed 63 gained 7 gained 11 requested 8 interactions

Age Place

Occupation Driver experience

Insurance Starting year N°

Car accidents Model

Challenges Credits Badges

Rewards Campaign

Membership Total distance

Total trips Total time

Distance - daylight Distance - night

Time - weekdays Time - weekend

May 2015 2184 km driven 97 trips 34:41:52

1984 km driven 200 km driven 15:27:43 19:14:09

Scoring

Insurance Risk Index

ENGAGEMENT PROFILE

351 KM DRIVEN

13 TRIPS

Driving patterns

Mobile app Web dashboard

CUSTOMER PROFILE DRIVING PROFILE

2 3

4 7.1 8.0 5.9 6.1 8.4

Usage patterns/behavior

VIVADRIVE Boost your business thanks to data – contextualized driver’s profiling

ROAD NETWORK CONTEXT Road type, road familiarity, rural/urban, regions, speed zones, …

DRIVING BEHAVIOUR CONTEXT Driving distraction (mobile phone use) & traffic psychology* (driver’s psychological profile)

DRIVING CONDITION CONTEXT Day/night, rush hours*, weekday/weekend*, trip duration*, …

DRIVING DYNAMICS CONTEXT Speed, acceleration, braking, cornering*, reckless events, …

CONNECTED CAR Integrate with connected car platforms

BRAND PARTNER Reach out to large user-base and link your app with a cool community e.g. Telco

FLEETS/LEASING Engage corporate communities

LOYALTY PARTNERS Share costs with loyalty partners

Collaborative business model through coalition loyalty program fuelled by AI & personalization

CREDIT CARD PARTNER Pre-paid loyalty card

GOVERNMENT & CITIES & NGO Prevention campaigns

that unlocks a new acquisition channel

6

1

2

3

4

5

VIVADRIVE Build and orchestrate your own successful business ecosystem

BUILD YOUR OWN COMMUNITY

VIVADRIVE Ready for a challenge?

USE CASE 1. Launch app for drivers

DRIVER PROFILE – Check how good you drive

DRIVING FEEDBACK – Become a better driver

COMMUNITY - Connect with your friends and colleagues

CHALLENGES - Compete with others

REWARDS – Earn rewards that matter to you

CAMPAIGNS – Be engaged via marketing campaigns

To help you understand and engage your customers & drivers we have a special B2B community management dashboard and Data APIs

COMMUNITY OVERVIEW

DRIVER OVERVIEW

DRIVER & CUSTOMER ENGAGEMENT OVERVIEW

USE CASE 2. Use community management tools

USE CASE 3. Start an Engagement Program

Start Driver Improvement and Loyalty Program with your existing portfolio

1.  Define a customer segment (mileage, preferences, claims experience, …);

2.  Set up driver improvement program including special challenges, driving feedback, and point system;

3.  Set up a loyalty program (rewards and marketing), where customers are rewarded for good driving, social activity and business;

4.  Define a viable business model;

5.  Integrate the program into into the insurance product experience.

USE CASE 4.Enjoy watching the results

CUSTOMER ENGAGEMENT VivaDrive drives customer engagement by incorporating mobile apps, driver improvement, loyalty program, and power of social media into the insurance product experience.

DRIVER/CUSTOMER DATA INSIGHTS VivaDrive combines driving behaviour, customers loyalty & satisfaction, lifestyle and business events. Our platform assures that you never miss out to increase a revenue with your existing portfolio.

INSURANCE 2.0 Having a dynamic picture of your customer and a driver rather than a static portrait means you are able to better tailor your products to each customer’s needs.

VIABLE BUSINESS MODEL VivaDrive helps you quickly launch a vibrant community with an engaging loyalty program and a business ecosystem with various loyalty partners. Together with partners you share costs, build stronger relationships with your customers and strengthen your brands.

IMPROVED ACQUISITION & RETENTION

Strong marketing, brand and value proposition

Independent community with a meaningful value

Emotional connection and involvement with a fair price and a transparent product

BENE

FIT FR

OM

USE CASE 4.Enjoy watching the results

USE CASE 4.Enjoy watching the results

CLAIMS IMPROVEMENT

Private, constructive and personalized feedback

Automated and post-drive feedback including all the driving events related to driving safety and driving economy

High engagement thanks to combination of gamification, rewards and social aspects

BENE

FIT FR

OM

ROAD VIKINGS – REAL EXAMPLE First bigger experiment

App launched on December 7th, 2015

50% of active users uses the app at least 2 hours per day

90% male, mainly young professionals 23-35 years old

50% daily commuters

60% of drivers improved their driving behaviour

100K VPP’s

collected 2.5M

kilometers driven

6000 users

ROAD VIKINGS – REAL EXAMPLE Lessons learned

1. Positive selection – Road Vikings solution attracts good drivers and those who want to improve driving

2. Driving improvement works – Road Vikings, even with good driver group, is able to positively impact driving behaviour through

a)  rewards – the biggest factor but even small rewards have a big impact;

b)  gamification – our competition system works very well and driver collected 70k VPP points;

c)   intrinsic motivation – there is a group of people who are interested in being better driver without being rewarded – minority but still substantial (15%-20%).

3.  Road safety can be sexy

WHAT’S NEXT? LET’S BUILD AN ECOSYSTEM AROUND THE COMMUNITY!!!

LESSONS LEARNED Who owns your customers?

CUSTOMER OWNERSHIP •  Insurers know little about their end customers, because historically they viewed

producers as their customers;

•  Producers: captive and independent agents, brokers, MGAs, RIAs, advisors, planners;

•  Is it possible to design UBI without producers?

OUR EXPERIENCE •  It is difficult to have a large scale UBI program without involving producers unless

you are ‘direct’;

TAKEWAYS •  Add additional engagement and gamification program for producers;

•  Try to make producers important stakeholders of the UBI program and part of your customer-centric strategy.

LESSONS LEARNED – ROAD VIKINGS INSURANCE The WOW effect – reality check?

INSURANCE AS A LIFESTYLE BRAND? - BEGINNINGS

•  You are calling on behalf of whom? I don't know, I don't understand. I cannot make a decision now, I have to go and ask my agent”

•  Do I have to do it? Is it because I had an accident last month and I did not report it?

•  Why? What? I am not sure. What email? I saw that but I did not understand and I deleted.

LESSONS LEARNED The WOW effect – reality check?

INSURANCE AS A LIFESTYLE BRAND? – IT WORKS !!! Community driven ecosystem

"Not only I collect points and drive safer but also noticed that can make 150km more on each full tank” -> Brings in 2 extra people

Epic idea, amazing app! Ok, it has a few bugs, it does some funny things, but the support was instant, the idea is amazing and supportive for us drivers to chill down (or up) our feet

(at least, I try to...) … All in all, I love this app and haven’t skipped a single drive yet with it. Good work!!!

Praises me for my awesome driving skills. That’s more than the wife does. What more can I ask?

Current stats of @roadvikings: 99 trips, 1888km, 9.5 life-time score, 75 points and plenty of goals completed

CHARLES

STEPHEN

JENS

ARNAUD

LESSONS LEARNED Communication and engagement – personal line

UBI VIA THE LOYALTY PROGRAM– A WOW EFFECT

•  Ability to enhance customer engagement •  Target the right offer to the right

customer; •  Effective and consistent

communication strategy via customer’s preferred communications channel (mail, email, landline, mobile phone or social media);

LESSONS LEARNED Business model

CREATE A STRONG DRIVERS COMMUNITY

Smartphone based

Gamification Community

Driving behavior Business behavior

Social behavior

SOLUTION

Brand related Mobility/car

Lifestyle

APPROACH ASSESSMENT REWARDS

Main benefits for a company •  Increase renewal rate (15%)

•  Decrease claims costs (10%)

•  Cost neutral for a company 50/50 cost split with partners

Main benefits for a driver •  Personalized rewards – with value of 15-20% of

a premium on average per driver

TRY VIVADRIVE TECHNOLOGY

UBI VIKINGS Try out VivaDrive – www.roadvikings.eu/munich

DOWNLOAD THE ROAD VIKINGS APP

JOIN THE UBI VIKINGS COMMUNITY Enter ‘RVMUNICH’ code in the “Communities’ section

DRIVE

CHALLENGES & CAMPAIGNS Participate in premium driving related challenges and earn Viking Plunder Points (VPP).

WIN REWARDS Exchange VPP into premium rewards

DRIVE FOR CHARITY Drive for Wild or Drive for Syria

Dr Mateusz Maj Evangelist & Marketing Actuary

mat@vivadrive.io 0032 494 899 891 0048 786 212 481

www.vivadrive.io

www.roadvikings.eu/munich/

‘RVMUNICH’ code