Why is O2 doing car
insurance?
The reason, and the role of data
Steve Wright
Head of Product & Operations. O2 Drive
Insuretech December 6th 2016
A bit about O2
You probably know O2 as …
A leading mobile provider
We’ve been awarded best customer service
seven years running by Ofcom
And we also do this
Smart devices have
become remote
controls for our lives
We spend
2h 26m
every day on
our smart
devices.
53%
of all web
traffic is on
mobile.
47%
of all Black
Friday
purchases
from
mobile.
…powered by the cloud
and big data
Unlocking the potential for smart datadriven services
Analogue
‘print’
Internet access
‘e’
‘equality’
Smart
Walled garden control
‘social’
‘i’
‘two-way’
‘apps’
‘sharing’
‘intelligent’
We believe that the car will be transformed next
Have you ever ….
value
Driven without
an MOT or Tax?
Not believed what
a mechanic said
about your car?
Broken down or
been in an
accident and not
had all the
information you
needed?
Felt undervalued
by your insurance
company?
But there's a growing
consumer trust gap
that we can address
through a consumer first
approach
While most consumers choose Most don’t understand what data is being
collected and how it’s being used
to share data …
91
%
70 %
value easier access to
information that digital
technology brings
would share their personal
data for a discount
Only …
25 %
know they share
their location
23
%
know they share
their web searches
Our approach is to build confidence through
openness and a clear value exchange
Source: HBR Customer Data - Designing for Transparency and Trust, May 2015
Resulting in increased
blocking
Our vision is to make the connected transport easy
through our mobile-first approach
Insight
“All drivers, especially
younger ones, see the
benefits of connected
car capabilities but see
no easy way of buying,
installing or using them
Our Vision
“We will make the
benefits of a connected
car as clear as those of a
smartphone, and as easy
to buy and use for
everyone
Insurance is the logical start point because the
model is broken – we can establish a new value
exchange between insurers and customers
Insurers
Loss Ratios
Constant
concern
especially
with digital
new entrants
disrupting
Data
Opportunity or
threat? How to
analyse and
use?
Customers
Expensive
But no
rewards, and
lots of
‘unfair’
restrictions
No tech no
talk
‘No tech to
help me and
I never hear
from them
O2 Drive insures you for who you are
and rewards you for what you do
Insight
Opportunity – O2 Drive
O2 Drive
Improve your driving. Get
exclusive perks. And let us take
care of your car, with Car
Assistant.
Responsible young drivers
struggle to get insurance at a
competitive price
Insurance companies struggle to
develop loyal and responsible
bases
Insight
Help young
drivers benefit
from responsible
driving
Opportunity
A data-driven
connected car
proposition –
starting with
insurance
Benefits
Insure you for
who you are
and reward
you for what
you do
Privacy
Separate
service –
consent with
O2 & comfort
O2 will manage
data
The O2 Drive proposition
https://drive.google.com/file/d/0B9818Ka0Lwh4OGRaX29qdE1hc1E/view
https://drive.google.com/file/d/0B9818Ka0Lwh4OGRaX29qdE1hc1E/view
There have been some key lessons for us
Agile working key for momentum
and speed
Building a relationship with a
new regulator
Understanding
a new value
chain
Partnering
with the
right
people
critical in
a new
industry
“Do you agree that data is poised to
transform insurance provided it’s
utilized in a customer-led way? If so
can your business afford not to
embrace this working with key
partners?”
[email protected]
Thank you
Back up
Why
The telecoms industry has been changing for some time
Declining revenues
Huge investment required
Ever-changing competition
New services
Connecte
d
Autonomous cars will be a reality by 2021 –
connected cars are a reality now
Proposition
It all adds up to a compelling proposition
Discount at renewal
1 Personalised pricing for O2 customers
5
• For Box on Board customers
our insurers can see safe
driving and might give additional
discount at renewal as a reward
£
• A competitive quote through
aggregator or direct channel
• Better deals for O2 customers based
on data
2
An app that puts you in control
• Car Assistant
• Help and advice on what to do in an
emergency, all your policy details
• Driving stats and tips on how to be a
safer driver
Rewards
• Priority-style rewards just for
being a Drive customer
delivered through the app
• Additional rewards for safe
driving behaviour
• High NPS scores
4
33
Defaqto 5 star rated insurance
• Market-leading insurance cover
unwritten by industry leaders
• Uninsured driver protection as
standard
Insuring customers for who they are. Rewarding them for what they do
DISCOVER, DISRUPT, DELIVER
Connected
We are focussing on Connectedness; Smart Car,
Smart Home and Smart Metering
Smart Car
“O2 Drive
Connected Car
Smart Metering
Connected Home
Connectedness.
Smart Home
“O2 Home
DISCOVER, DISRUPT, DELIVER
Data is King
Resulting in increasing blocking
And new regulation
GDPR will enshrine new rights & obligations
Right to be
forgotten
Right to data
portability
Informed &
affirmative
consent
…
Fines up to
€20Mn or 4%
global turnover
Insigh
t
Insurance is the logical start point because the model is broken –
we can establish a new value exchange between insurers and
customers
Insurers’ challenges
• Loss ratios
• Increasingly demanding
customers
• Digital infrastructure
• Working with new digital
market entrants
• Understanding, analysing
and using new data
sources
• Distribution costs
DISCOVER, DISRUPT, DELIVER
How customers feel today
What O2 are going to do about it
“No rewards”
We’ll reward you for being a
great driver
“Insurance is so expensive”
We’re a place for the good
drivers
“No digital tech”
We’ll make your driving
experience more connected
“So many unfair
restrictions”
We give you freedom: no
curfews etc
“Why does my insurance
only help me with a crash?”
We’ll be with you on every
journey via our app
“I never hear from them”
We’ll be bringing hints and tips
on driving safely
We’re making driving better
Navigating. Servicing. Insuring. Rewarding.
You get it all done quicker with O2 Drive.
Can’t wait? You don’t have to.
Sign up for the free trial now.
Close
O2 Drive – award winning
In May O2 were awarded the prestigious TM Forums digital service innovator award for O2 Drive, with special
reference to use of data
https://www.tmforum.org/about-tm-forum/awards-and-recognition/digital-world-awards/winners/
DISCOVER, DISRUPT, DELIVER