Much More Than Just UBI

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Ronald Johnston
5 years ago
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1 Much More Than Just UBI Michel Laurin President and C.O.O. Industrial Alliance, Auto and Home Insurance inc. 1 R + V Re s Event September 3, 2015

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5 Our Mission in the ia Group To help ia and its distribution networks attract new clients through the direct sales of P&C personal lines insurance products in the province of Québec 5

6 Intact TD Aviva RSA CoOp Wawanesa Economical Desjardins Lloyds State Farm Allstate Travelers Northbridge Capitale AIG Zurich RBC Chubb Gr.Shield Bankers FM Guarantee Allianz Gore ACE INA AMA Liberty Continental ia SSQ Peace Hills Portage P&C Premium Volume in Canada (in $M)

7 7 And this is the innovation we came up with

8 8 How did we come up with this?

9 Let s go back in time Before September 2010 We had nothing under the radar September 2010 Vendor s visit Proposal to use telematic technology to improve the way we manage automobile risks Traditionnal approach 9

10 Let s go back in time From october to december 2010 Period of stepping back and thinking about it Our inspirations 10

11 11 We then put 3 ingredients into the same basket adding to it our 2 insiprations

12 12 We selected a cause

13 and how we would tackle it In an alluring way combining insurance and technology 13

14 Again back in time March and April 2011: Imagine the business model and its underlying basic principles Full time «mission» for 6 executives 4 from IAAH 2 from Baseline Telematics 14

15 Again back in time May 2011: Mandate a full time «mission team» of 15 employees that will, within 12 months, conceive a product : Improving driving behaviors Through telematics Starting from a white page Using a LEAN approach And shattering paradigms 15

16 And they did! On April 11, 2012: 16

17 - First and foremost a cause Make young people (particularly those aged 16 to 24) aware of issues related to speed and dangerous driving behaviors Influence young people to become responsible in a positive and non-coercive way Bring together a community of young drivers Reduce accidents and save lives 17

18 - A new approach to insurance 100 % self-service on the Web Simple and easy : very few questions to get a quote A single product «All Risks» Coverage for everyone Only 1 deductible (250$) And only 1 option : Replacement Cost (for new veh.) 18

No purchase nor installation cost for clients Detects mileage, speed,

19 - A more up to date technology Transmits data like a GPS Through cellular waves Permanent installation in the car The only «condition» of the Program No purchase nor installation cost for clients Detects mileage, speed, forced accelerations and heavy braking These data become the basis for pricing 19

20 $$$ - A bold pricing approach Program Basic Premium Mileage «Standard» insurance premium for youths $$$ Exceptional behavior : up to 25 % off Irresponsible behavior : Up to 100 % surcharge 20 (applicable sur prime d appel et kilométrage)

21 - A benevolent companion Weekly driving report by Summary of behaviors Comparison with other young people of the «community» 21

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23 - Secured proprietary information Secured transactional client portal Updated in real time Allows the driver to monitor his behaviors And thus, to continually improve! 23

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25 - A variable monthly bill A different premium each month Based on mileage And behaviors Payable within 15 days By credit or debit card 25

26 - A community Social media interaction on a continuous basis Real-time «Voice of the customer» Which led to adjustments to the program after only 6 months! 26

27 - Much more than just UBI Through the use of telematics: Added contribution to society Based on what we know and do best With new value added features : Continued active communication Behavior awareness information Creation of a virtual community Customer driven improvements (wiki-type program) 27

28 The daring Rethink Insurer- Insured Relationship 28

29 Any question? Michel Laurin President and C.O.O. Industrial Alliance, Auto and Home Insurance inc. 29 R + V Re s Event September 3, 2015

VOTING AT ANNUAL GENERAL MEETING

VOTING AT ANNUAL GENERAL MEETING ALBERTA VOTING BY MEMBERS AT AN ANNUAL GENERAL OR SPECIAL MEETING, OR BY MAIL, SHALL BE BASED ON THE MEMBER S TOTAL VOLUME OF VOLUNTARY AUTOMOBILE DIRECT WRITTEN PREMIUM