Consulting Group Global UBI market dashboard Presentation and sample London - 6 th February 218 - intellectual property
in a nutshell The consulting & research firm for the connected world Consulting services Fields of expertise Strategy definition Investment assistance Procurement strategy Mobility services Car pooling Fields of Car expertise sharing Smart parking Multimodal mobility Ride hailing Road side assistance Tax refund Innovation management Business development Deployment Vehicle services & telematics bcall ecall FMS SVT / SVR Tracking VRM In-car Wi-Fi Fuel cards Parking Navigation Speed cameras Traffic information Market research services Usage-based charging Vehicle data & analytics Car As A Service Electronic Toll Collection AI CAN-bus Crowd-sourcing Data protection Mobility-as-a- Service Road charging Driving behaviour OBD Predictive analytics UBI / PAYD Vehicle rental Vehicle leasing Remote diagnostics xfcd Vehicle automation ADAS Autonomous cars Autonomous trucks Enabling technologies Positioning (GNSS / WiFi / cellular) M2M / connectivity s Telematic devices V2X 2
in a nutshell Our clients are across the mobility ecosystem Analytics, maps & applications providers Automotive manufacturers & suppliers Mobile telecom operators Fleet & fuel, ITS & regulators Telematics solution providers Device & location suppliers Insurers, aggregators & assistance providers OBD2 Bluetooth Dongle basic compatible car models Banks & private equity investors! 212 Directors report (translation from the Italian original which remains the definitive version) 3 Financial Statements of the Company and the Group at 31 December 212
in a nutshell - Research brings unparalleled depth of knowledge in connected and autonomous vehicle services The reference reports on UBI, quoted by The Economist, the Financial Times and the Wall Street Journal The most comprehensive research on insurance analytics The most thorough analysis of ADAS and AVs Referenced figures and forecasts for 14 connected car services For more information and pricing details, please contact fbruneteau@ptolemus.com The reference on vehicle payment services Reinventing fleet management 4
Quantitative UBI market dashboard - Content Our quarterly UBI dashboard monitors the market metrics every quarter in 17 countries/ areas The metrics to shape your UBI commercial strategy 11-page barometer of the global UBI industry - Covers 36 companies - Issued on a quarterly basis - 3+ charts, tables & figures A global dashboard covering - Advanced markets: US, Canada, France, Germany, Italy, Spain, UK - Emerging markets: APAC, Benelux, China, Latin America, Russia, the Nordics, other European markets Leverages both public information and primary research - A large set of public information collected from conferences, desk research, etc. - Supplemented and validated by primary research & data (Interviews, supplier questionnaires, own market forecasts, etc.) Brings all key market news Estimates UBI volumes and sales for all main players - Insurance companies - TSPs - Technology providers Deciphers the key market trends - UBI penetration - Number of programmes - Mix by business model (PAYD, PHYD, TBYB, etc.) - Market share of all main insurers, TSPs and device makers - Technology mix (es, OBD, apps, etc.) - Business line mix - Segment mix (Young drivers, mature drivers, etc.) - Channel mix aftermarket / OEM 5
Global market dashboard Q4 217 The global UBI market grew 6% in Q4, capping off a strong year of steady growth 1, Breakdown of UBI policies by insurance group 8, 6, 4, 2, 39% 19% 7% 9% 12% 13% Market share of key TSPs active UBI policies Insurers 26% own provision Insurers own provision 3% 5% 8% Active UBI policies in key UBI countries (in s) SAMPLE DATA, CONSULTING GROUP COPYRIGHT US Italy Canada UK Germany France Spain Market share of key TTPs active UBI policies UBI policies (million) Active programmes* programmes** Global UBI indicators Q1 217 New programme launches (last 6 months) Windscreen OBD light 26 programmes 42% Self install black box OBD Line-fitted CLA Q2 217 Q3 217 Q4 217 If you need more data points, contact thomas@ptolemus.com, tel: +44 7973 889 392 17.4 353 67 Source: estimates 6
Global market evolution - Active programmes Q4 217 UBI growth is coming from a few Western countries but tomorrow it will driven by a multitude of emerging markets Active UBI programmes by country If you need more data points, contact thomas@ptolemus.com, tel: +44 7973 889 392 1 2 5 1 15 2 25 3 35 4+ Source: 7
Global market evolution - Active programmes 4 3 2 1 More than 35 UBI programmes globally If you need more data points, contact thomas@ptolemus.com, tel: +44 7973 889 392 31/3/29 3/6/29 3/9/29 31/12/29 31/3/21 3/6/21 Number of active UBI programmes worldwide by quarter since 29 3/9/21 31/12/21 31/3/211 3/6/211 3/9/211 31/12/211 31/3/212 3/6/212 3/9/212 31/12/212 31/3/213 3/6/213 3/9/213 31/12/213 SAMPLE DATA, CONSULTING GROUP COPYRIGHT 31/3/214 3/6/214 3/9/214 31/12/214 31/3/215 3/6/215 3/9/215 31/12/215 31/3/216 3/6/216 3/9/216 31/12/216 31/3/217 3/6/217 3/9/217 31/12/217 USA UK Russia Italy Germany France Canada Source: quarterly UBI Dashboard 8
Global market evolution - Insurance companies Q2 216 2 15 1 5 Progressive s rapid growth has impacted the whole market 1,5 1, 5 UBI policies (s), quarterly growth and market penetration (%) UBI penetration rate (%) Total UBI policies (million) Estimate based on UBI study forecast 11% 9% 8% Q3 215 Q4 215 Q1 216 Q2 216 Number of active UBI policies by insurance company (in s) 4, Progressive UnipolSai 3,5 Allstate 3, Generali Liberty Mutual 2,5 State Farm Nationwide 2, Intact insurance 3% 2% 1% % 15, 12, 9, 6, 3, Total UBI premiums generated ( million, annual basis) Canada USA UK Spain Italy Germany France Q3 215 Q4 215 Q1 216 Q2 216 Share of active UBI policies by insurer (%) 31% 27% 5% 7% 11% 19% Progressive UnipolSai Allstate Generali Liberty Mutual Top global insurance companies by market capitalisation UBI programme UBI estimated penetration rate Berkshire Hathaway Trial x Allianz x AIG x Ping An Trial x AXA x AIA Group x x ING Group x x Zurich Insurance x x Leading UBI insurers Country UBI estimated penetration rate Progressive US xx UnipolSai Italy xx SAMPLE DATA SHOWN FOR ILLUSTRATION ONLY, Allstate US xx CONSULTING GROUP COPYRIGHT Source:. 9
Global market evolution - TSP-based vs. insurer in-sourced programmes Q2 216 Large insurers have stated their desire to insource, but the dominant model continues to be TSP-based 15 12 9 6 3 TSP Insurer own provision 62% 38% Active UBI policies (million) Q3 215 Q4 215 Q1 216 Q2 216 UBI programmes by type (%) 9% 61% 39% 38% 38% 249 programmes 62% 62% TSP Insurer own provision Active policies from in-sourced UBI Active UBI policies from TSP-based programmes (%) programmes (%) Progressive Octo Telematics Allstate Vodafone Automotive Allianz Viasat MetroMile Verizon Telematics 1% Auto-Owners Insurance IMS 21% 23% Insurer ownprovision 7% 3% Share of active policies from in-sourced UBI programmes 5% 7% Market addressable to TSPs SAMPLE DATA SHOWN FOR ILLUSTRATION ONLY, CONSULTING GROUP COPYRIGHT 6% 91% n.a <3% 3%-1% 11%-29% 3%-39% -49% 5-7% >7% Source: 1
Global market evolution - Telematics technology providers Q2 216 While Danlaw has overtaken Xirgo in North America, Meta System remains the dominant player in Europe Number of active UBI devices by TTP (in s) 5, Meta System Danlaw Xirgo Tech 4, Vodafone Automotive Movitrack Viasat Verizon Telematics 3, Calamp 2, 1, Top TTP market share holder in each country XX Danlaw Xirgo Tech Share of active UBI devices by TTP (%) SAMPLE DATA SHOWN FOR ILLUSTRATION ONLY, CONSULTING GROUP COPYRIGHT Scope 6% 2% 12% 18% 41% Meta System Danlaw Xirgo Tech Vodafone Automotive Verizon Telematics Source: 11
Global market evolution - Devices mix Leading insurers are adopting a multi-device strategy while TSPs mostly keep a single device approach 15, 12, 9, 6, 3, Unipol Allstate Generali Liberty Mutual State Farm Nationwide Active global UBI policies by device type (in s) Device mix for key insurance groups (%) Dash camera Cigarette-lighter-adapter OEM Light OBD dongle OBD dongle Windscreen device Self-install black box Breakdown of UBI policies by device in use (%) 55% Self-install black box Windscreen device Vodafone Automotive OBD dongle Light OBD dongle Movitrack Viasat OEM Verizon Telematics Cigarette-lighter-adapter IMS Modus 2% 2% 2% 28% 11% Device mix for key TSPs (%) SAMPLE DATA SHOWN FOR ILLUSTRATION ONLY, CONSULTING GROUP COPYRIGHT Q2 216 Self install black box Windscreen device OBD dongle Light OBD dongle OEM Cigarette-lighter-adapter Dash camera % 2% 6% 8% 1% % 2% 6% 8% 1% Source: 12
Italian market evolution - Insurance carriers Q2 216 Quarterly growth remains consistent in Italy at 6% 6, 5, 4, 3, 2, 1, UBI policies (s), quarterly growth and market penetration (%) UBI penetration UBI policies Estimate based on UBI study forecast 6% Q3 215 Q4 215 Q1 216 Q2 216 3% 3% 3% 21% 7% 55% 7% Share of active UBI policies (%) 6% 2% 16% 12% 8% % 5, 4, 3, 2, 1, UnipolSai Generali AXA Intesa San Paolo Assicura Allianz Groupama Sara Reale Mutua Gruppo Catolicca Assicurazioni 3, 2,5 2, 1,5 1, 5 Active UBI policies by insurance company (in s) UBI premiums generated ( million, annual basis) Q3 215 Q4 215 Q1 216 Q2 216 Gruppo Catolicca Reale Mutua Sara Groupama Intesa San Paolo Axa Allianz Generali UnipolSai 215 October: MAPFRE acquires Direct Line in Italy and Germany November: Replacing the Monti law, the competition bill is now discussed in parliament 216 Recent events Source: carrozzeriaautorizzata.com April: Infomobility strengthen partnership with Generali for provision of telematics insurance and replaced Vodafone June: The senate approved an amendment to the competition bill potentially mandating installation of the black boxes on all means of transport by 217. Public vehicles would first be impacted, followed by private vehicles. Source: facile.it SAMPLE DATA SHOWN FOR ILLUSTRATION ONLY, September: Generali and Progressive announce a R&D agreements in order to improve their data analytics capabilities CONSULTING GROUP COPYRIGHT Source: Business Wire Source: 13
Italian market evolution - Telematics service providers Q2 216 The Italian market is dominated by local providers Share of active UBI policies by TSP (%) 12% Young drivers Low risk drivers Pre-licence drivers 9% Older drivers 1 Safety/Security Specialist cars Forgiveness Fleets Motorbikes 75% UBI programmes by target segment 1 1 2 6 Octo Telematics Vodafone Automotive Movitrack Viasat Insurers own provision 5 1 15 2 25 3 35 35 4, Octo Telematics Vodafone Automotive 3,5 Movitrack Viasat 3, 2,5 2, 1,5 1, 5 Number of active UBI policies by TSP (s) UBI programmes by model (%) Leave-in Roll-over Try before you buy XX 1% programmes SAMPLE DATA SHOWN FOR ILLUSTRATION ONLY, CONSULTING GROUP COPYRIGHT 14 Source:
Italian market evolution - Telematics technology providers Q2 216 The device landscape remains highly concentrated Share of active UBI devices by TTP (%) 9% 12% 79% Meta System Vodafone / Cobra Movitrack Viasat 4, 3, 2, 1, Number of active UBI devices by TTP (in s) Meta System Vodafone / Cobra Movitrack Viasat Breakdown of Meta System devices (in s) Breakdown of Vodafone Automotive devices (in s) 4, 1, 3, CLA 75 OEM 2, Light OBD dongle OBD dongle 5 Windscreen device Self-install black box 1, 25 SAMPLE DATA SHOWN FOR ILLUSTRATION ONLY, CONSULTING GROUP COPYRIGHT CLA OEM Light OBD dongle OBD dongle Windscreen device Self-install black box 15 Source: -
Italian market evolution - Devices Despite a large market share, black boxes see growth in anticipation of the black box amendment beginning 217 5, 4, 3, 2, 1, Unipol Generali Allianz Axa Intesa San Paolo Active UBI policies by device type (in s) Device mix by insurance company (%) CLA OEM Light OBD dongle OBD dongle Windscreen device Self-install black box Self-install black box Windscreen device OBD dongle Light OBD dongle OEM CLA UnipolSai created a standalone telematics company, AlfaEvolution Technology, to support the telematics initiatives at Group levei Under this new model, UnipolSai would still consider outsourcing functions such as device installation, device logistics, SVR, private ecall, etc. Share of UBI device technology in use (%) SAMPLE DATA SHOWN FOR ILLUSTRATION ONLY, CONSULTING GROUP COPYRIGHT 31% 7% 62% Q2 216 Self-install black box Windscreen device OBD dongle Light OBD dongle OEM CLA 25 5 75 1 Source: - Note:* Sesto Senso is considered as a windscreen-based programme but it also includes a black box 16