Development of an ecosystem of partners to launch a telematics car insurance company
Financial services

Defining business case and revenue-sharing model for a consortium established to offer insurance telematics services to OEMs and insurance companies


Challenge

The client wanted to tap into new vertical-growth segments and increase its efforts regarding connected-car propositions and telematic insurance solutions.


The consortium envisaged setting up a partnership with a global insurance telematics provider in order to offer insurance telematics services to OEMs and insurance companies. ADL was therefore asked to develop an insurance telematics/connected-car partnership model, and supported the client in: 

  • Defining an appropriate partnering approach; 
  • Aligning technical requirements; 
  • Developing a business case; 
  • Developing a revenue-sharing model

Approach

Arthur D. Little conducted the project in two phases: concept definition and concept detailing. 
In the first phase Arthur D. Little developed partnering models that included insurance telematics, e-call and extended services propositions, and conducted workshops with the client to identify the appropriate partnering model. 


The second phase, concept detailing, was conducted in two work streams: 

  • definition and alignment of technical requirements of the insurance telematics provider and an OEM interested in a partnership with the client; 
  • development of a business case and a revenue-sharing model for the client, the insurance telematics provider, the OEM and an insurance company

Value

Arthur D. Little delivered a sustainable business case and revenue-sharing model for the client and all parts involved.