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