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“Pay As You Drive” Bulletin October 2009

sminguijon — Wed, 21 Oct 2009 17:03:40 +0000

—– Original Message —–

From: s.minguijon@salvador-minguijon.es

Sent: Wednesday, October 21, 2009 6:54 PM

Subject: Pay As You Drive Bulletin October 2009

Dear Ladies and Gentleman,

In these moments there is a frantic activity in France with regard to PAYD. To explain what is happening we have to go back some years.

The project of Norwich had created a great expectation in all Europe and probably more in France, where the concept of individuality is deeply rooted.

So, quickly, MAAF presented a project that was not approved by the competent authority (CNIL) because:

- The excess of speed is a crime (in France) and crimes can only be registered by the state.

- It was not judged proportional the sensibility of the information of vehicle localization with the saving or utility that the user would receive.

During a time a lot of tension was generated because the insurance companies feared that they will lose the position of European leadership if they could not work in the development of this product in their own interior market.

Later on AXA presents a project for professional fleets that received the approval of the CNIL. I don’t have information of the further development of this project, but it is clear that it supposed the seed of the application created by STERIA-ORANGE-KUANTIC, which seems to be able to become one of the leaders in Europe.

Another actor that enters in scene is Solly-Azar. It’s a project focused to the profitability, directed to the niche of the young drivers and repeating the marketing outline developed by Norwich. It leans on in the interest of Cobra to win a hole in this market (also in England, following the same strategy) that its competitor Octotelematic has surrounded in Italy.

The new mark of Groupama, Amaguiz, was the next to move. In fact it is a little more than a test with a modest objective of reaching 30.000 clients in 3 years. It is only billed by the traveled kilometers, knowing well that the schedules and areas by those that you circulate would present a higher correlation with the risk. When using a different mark is eliminated in great way the risk that their own clients are those that change to this cheaper policy. The supplier of the technology is Octotelematic, a company that has demonstrated to have the ability and necessary commercial skins to transform its antitheft system into the application leader of the PAYD in Europe.

The following action, basically defensive, comes from AXA by creating a specific product for those drivers that make less than 4000 km a year. A market that otherwise would have corned Amaguiz.

Their technological partner is Steria and on this technological base, both MAAF and MMA are going to develop projects that probably have more ambitious targets.

And..there are more… AVIVA, AGF…

The first steps of AXA have some similarity with what is now happening in Spain with the activities of Mapfre.

What will happen in Germany?

What will make Siemens to be in this market? It is unthinkable that it wouldn’t have an outstanding role in Europe.

If somebody wants that their address is erased of my distribution list, please return me this message with the word “DELETE.”

As always, I have upgraded my “Pay As You Drive Directory ” and my News Bulletin.

Yours sincerely

Salvador Minguijón Pérez.
Interim Management.
+ 34 649 49 17 70
+ 34 976 59 58 71
Email: s.minguijon@salvador-minguijon.es
Web: http://www.salvador-minguijon.es

“Pay As You Drive” Bulletin September 2009

sminguijon — Thu, 17 Sep 2009 18:47:00 +0000

Dear Ladies and Gentleman,

Nowadays, and I hope it is something more than a passing fact, the main point of support of the projects Pay As You Drive is the impact that they can have in the development of a more ecological use of the vehicle, although in fact there are many other costs generated by the traffic that should motivate a bigger political support to this type of projects.

In this context, the most outstanding news is the commitment with the development of the policies “Pay As You Drive” on the part of the Californian government. As it has happened in other occasions, this can have a great repercussion in the institutions of other North American and European states.

The interesting thing of this position is that it prohibits the use of the GPS and of information on the localization for these projects. Limiting their use to such applications as emergency road service, anti-theft, map service or travel assistance provided they are carried out by entities without spirit of lucre, such as clubs etc.

Since these services are not of constant use, the information of the localization shouldn’t be systematic and therefore it would not be appropriate to consider it inside a project Pay As You Drive.

This would support the decision taken by Progressive of replacing their project Autograph, which used a GPS, by the current MyRate that does it without this information and additionally they also eliminated the necessity of installation, which is one of the main sources of problems of these projects.

We don’t have information on their penetration in the market, but what we know is that in one year, their offer has extended to 14 states and that it is incorporating some more every month.

In Europe the thing is not so clear, basically all the projects incorporate GPS in the belief that the E-Call or E-Toll system will imply their obligatory use in the automobile and that “their readiness would justify the use of its information for the application PAYD.” This is a quite doubtful reasoning. In fact so much Progressive as Norwich, the pioneers in this system, reached the conclusion that the future didn’t go this way.

Continuing in Europe we have to stress the interest of the company leader in Spain Mapfre with their project Y-Car and the presentation of a new policy for motorcycles eBike10. This has motivated me to open a new blog in Spanish to speak with more detail of the Ibero-American projects.

And, of course, we also have to mention to AXA that has launched a project in France leaning on the technical support of Steria and in Italy, where AXA-Carlink has recovered the project Autometrica that was the first European PAYD project.

If somebody wants that their address is erased of my distribution list, please return me this message with the word “DELETE.”

As always, I have upgraded my “Pay As You Drive Directory ” and my News Bulletin.

Yours sincerelly

Salvador Minguijón Pérez.
Interim Management.
+ 34 649 49 17 70
+ 34 976 59 58 71
Email: s.minguijon@salvador-minguijon.es
Web: http://www.salvador-minguijon.es

“Pay as you Drive” Bulletin March 2009

sminguijon — Thu, 26 Mar 2009 08:23:13 +0000

Dear Ladies and Gentleman,

As we had commented the previous month, the current crisis and the pressure in prices are moving to the insurance companies toward more novel products and it can be an incentive for the installation of PAYD projects .

In general it seems that we must give up 20% of the previous economic activity and the solution to this crisis passes to create new activities or to restate the current ones to give more value or to diminish the cost from a global point of view (that means those that the client pays but also those that it costs to the society), in this sense a project PAYD with its influence in the reduction of the use of the vehicle, contamination, traffic congestion and accidents seems to respond perfectly to this outline.

The insurance companies don’t usually inform on the results of their projects or tests because the competition among them is very hard and any small strategic advantage is very important, for that reason it is interesting the information that 7% of the new contracts of Solly Azar are PAYD policies, practically identical of the one that Norwich defined in England for young drivers. Solly Azar is a wholesaler insurance trader specialized in niches and with 120.000 automobiles assured in France.

In Italy the market of anti-theft of vehicles has been traditionally very important and this has created a suitable environment for the development of this sector.

Solly Azar uses Cobra equipment, which is working very intense and seriously in the project PAYD. This is causing a reaction on the part of Octotelematics, which had achieved an important penetration in the market of the added services and hoped to be able to take advantage of this to get a leadership position in the applications PAYD in Italy and for extension in other countries.

Although the experience doesn’t seem that was satisfactory in the case of the Spanish Mapfre and neither seems that it can have many possibilities of success in Germany. On the other hand in the own Italy there are others very important projects, like the one that are developing Fiat, Accenture and Telecom Italy.

In United States there is a high social motivation toward PAYD and a good acceptance on the part of the public.

In South Africa has been presented a new project MiDriveStyle that seems to be very complete.

In fact the number of actors doesn’t stop to increase in the entire world, conform to it goes seeing clear more and more that the future spreads toward pay per use taxes, as much in Europe as in United States.

I have repaired an old link to a report in Spanish on the PAYD project which was exposed in the IGC 2006 and to the text in English of the patent EP070009.

If somebody wants that their address is erased of my distribution list, please return me this message with the word “DELETE.”

As always, I have upgraded my “Pay As You Drive Directory ” and my News Bulletin.

Yours sincerelly

Salvador Minguijón Pérez.
Interim Management.
+ 34 649 49 17 70
+ 34 976 59 58 71
Email: s.minguijon@salvador-minguijon.es
Web: http://www.salvador-minguijon.es

“Pay as you Drive” Bulletin February 2009

sminguijon — Fri, 27 Feb 2009 17:09:30 +0000

—– Original Message —–

From: Salvador Minguijon Perez

To: s.minguijon@teleline.es

Sent: Friday, February 27, 2009 5:57 PM

Subject: “Pay as you Drive” Bulletin February 2009

Dear Ladies and Gentleman,

Since the publication of my last bulletin in September many things have changed in the business world.

We still don’t have very clear where we exactly are neither which will be the situation in which we will find a balance again. The insurance companies and in general the whole service sector is being subjected to a great pressure in prices that forces them to concentrate on restructuring and reduction programs cost.

This has been quite negative for the projects PAYD but the situation can change very quickly. The market is now much more receptive and sensitive to the prices and this improves the possibility to segment it and that is what really tries to make the PAYD project.

Accenture has published a magnificent study on the future evolution of the insurance, although I am not certain that it is available in English. And on the other hand Exigen has also published a notable work specifically on the project PAYD.

It is also of interest an article that analyzes the relationship among the cost per kilometre and the use of the vehicle, a study on the risk of the aggressive conduction and another about the risk in the conduction of the youths in England.

In France we surprise ourselves when discovering that AVIVA continuous his project in spite of the cancellation of the same one in England., being added to MMA, MAAF, Amiguiz (Groupama) and Solly Azar. A explosion of projects that has taken place as soon as the CNIL has moved away its veto to these projects.

We are also surprised that in England we find a new project Coverbox that contributes some novelties, it is led by the company Wunelli-Cobra and it seeks to constitute a technological platform on those that the insurance companies can hang their applications PAYD. This would solve one of the paradoxes that the PAYD presented and it is that it was very attractive for the small insurance companies that work on niches, but only possible for the big insurance companies, for those that represented more a risk that an opportunity. For now Co-Operative Car Insurance that has been added to the experience.

Also in England Admiral has begun to make its experiments, in this case with Greenroad.

In United States, Progressive continuous with their implementation and with Kentucky they are already nine the states in those that you can hire the policy MyRate.

There are interesting activities in India and Australia. and new news of companies that continue betting very strong for this such project as PTV and Skymeter.

If somebody wants that their address is erased of my distribution list, please return me this message with the word “DELETE.”

As always, I have upgraded my “Pay As You Drive Directory ” and my News Bulletin.

Yours sincerelly

Salvador Minguijón Pérez.
Interim Management.
+ 34 649 49 17 70
+ 34 976 59 58 71
Email: s.minguijon@salvador-minguijon.es
Web: http://www.salvador-minguijon.es

“Pay as you drive” Bulletin September 2008

sminguijon — Sat, 27 Sep 2008 17:32:44 +0000

—– Original Message —–

From: Salvador Minguijon Perez

To: payd@salvador-minguijon.es

Sent: Saturday, September 27, 2008 7:24 PM

Subject: “Pay as you drive” Bulletin September 2008

Dear Ladies and Gentleman,

The most important news during this month has been the Californian government’s announcement of supporting the system PAYD, whenever it doesn’t incur in the risk of processing information that could be used to interfere in the private life of the citizens. It has been written in a draft regulation, yet still to be negotiated in detail.

Steve Poizner, Insurance Commissioner in California, exposed the motivations of this support that basically were sustained in a magnificent study of the Brooking Institution.

The reference of California is very important. With less than 40 million inhabitants, its economy could allow it to belong to the group of the 8 more industrialized countries of the world and it is an example as for technological level and quality of life.

Maybe it is the moment to remember that Progressive continues ahead with its project and that it is having a good welcome, although in many North American states it is necessary to adapt the legislation so that a PAYD insurance is possible.

We also have Real Insurance in Australia that has just presented an insurance of the type PAYD, we suppose that learning of the experience of Hollard in South Africa.

On the other hand we can find the desperation of the promoters of this type of projects in Canada. They considered that there were given the ideal circumstances to develop this project and little by little they are realizing about how it seems to be lost the possibility to play a significant role in the same one definitively.

It seems really that there is a understanding in that, not only the problem of the climatic change that already of for itself it should be enough, but rather the economic evolution will also impose unavoidably an evolution toward systems of the type PAYD. Without a doubt this it is the reason so that the English government continues maintaining his tests to apply a Road Tax, conceptually derived of the PAYD of Norwich.

After an organizational parenthesis, we have the opportunity to know the activities of Siemens and the recently created Cinterion again. Both companies should be dedicated to play an important paper in the conception of projects PAYD.

As always, I have upgraded my “Pay As You Drive Directory ” and my News Bulletin.

Yours sincerelly

Salvador Minguijón Pérez.
Interim Management.
+ 34 649 49 17 70
+ 34 976 59 58 71
Email: s.minguijon@salvador-minguijon.es
Web: http://www.salvador-minguijon.es

“Pay As You Drive” Bulletin July 2008

sminguijon — Thu, 31 Jul 2008 21:03:12 +0000

—– Original Message —–

From: payd@salvador-minguijon.es

To: s.minguijon@salvador-minguijon.es

Sent: Monday, August 04, 2008 9:08 PM

Subject: “Pay as you drive” information

Dear Ladies and Gentleman,

Last two months have been of an intense activity on the PAYD proyects.

The most important event has been the annulation of the “Pay As You Drive” proyect for private users of Norwich Union because it was being the main reference for a lot of activities in all the world.

This notice was made a little bit later than the Progressive announcement (which initial project Autograph was the base of the PAYD Norwich one), his experimental system Tripsense would convert in a national project called MyRate.

We will also explain the United States situation, where there is a deep argue about the suitability of PAYD systems.

We will also refer to the activities in France, where Groupama, Maaf y Solly Azar are quickly making their projects public.

At last we will try to make some conclusion about what is taking place with this project and which could be the success keys.

About the Norwich project, it was already known that it wasn´t rearching the market share previously thought. It seems that it was a product hard to sell because it was only a third-party insurance and there was an important uncertainness about the possible use that could be given to the information obtained by the system.

On the other hand the maintenance of the entire system represented a very high cost, we must remember that Norwich managed all technological aspects of the project by themselves. It had small chances of changing in a medium term and also the provided information by the project was very committed, passing through several companies for its treatment and it would have been very bad to repeat another experience like the one they had recently with data protection and the Financial Services Authority.

The truth is that the Norwich project was very well prepared, it included additional services directly offered by Trafficmaster and RAC and had a excellent marketing planning, having made an enormous effort for lot of years.

What failed?

Firstly it was scheduled that car manufacturers assemble the devices at source. There was a moment of euphoria when the English government decided to introduce the same system for tax collection related to traffic, which was followed by a big disappointment when the 3 million people protest made this concept was abandoned. And last, we came to the conclusion that, without any legal or car manufacturers synergy, it is not probable that the general market will accept massively to monitor its position and speed systematically.

In relationship with Progressive, we should follow their activities very closely because it is not foreseeable mistakes in their approaches. We must remember that it was rehearsing the Autograph system for years, which once left the GPS system began work on an experimental system called Tripsense that had no GPS but a lot of information about how and when the car was used and now this system renewed with a specific hardware and incorporating a telecommunications system has become the project MyRate to be offered throughout the United States.

We also have GMAC, which provides a policy based only on the mileage but exclusively for the G.M. OnStar system customers. The insurance company says that the only information it receives the system is the odometer reading.

In the U.S. there is a high political awareness about the issue of CO2 emissions and PAYD system is regarded as one of the best alternatives, and is challenged only in so far as to the possible loss of privacy that certain information brings. This is the reason why the two insurance companies ignore the location information and transmit only aggregate information in long periods of use. Although the GMAC case this is not exactly like this because the system transmits a lot more information to the system that manages ON STAR services.

In France we have several examples of how the market is developing. In less than six months, we have gone from not having anyone providing this type of policy to have several more than three ready to be launched.

We have a small business Solly Azar which has virtually copied the model of the policy Drive Time from More Than and that is geared to the young customers niche, charching per kilometre and trying to avoid driving at night.

Maaf has opted for a typical test limited to 3000 customers, which offers a discount. As partner has chosen Masternaut, we must remember that along with Cybit is one of the suppliers approved by Norwich for insurance PAYD professional.

And then we have Groupama, which launches its PAYD insurance policy through a new brand Amaguiz, in order to avoid that its own customers are those who opt for this alternative and if something goes wrong not to endanger its image. It also proposes a turnover linked to the number of kilometers . None of these three cases is transmitted the speed or the position of the vehicle, despite the fact that some of these equipments incorporate a GPS system because are standard terminals.

If we try to draw conclusions from the projects and tests that have been done, we should:

1. Only the distance is not a meaningful indicator of risk, if not dealt with the times, kind of way, speed, violence in the driving or other parameters really linked to risk.

2. Efforts should be made to minimize that sensitive information would be transmitted in detail.

3. It is not logical to pretend the insurance companies are the ones that develop this application, spending small fortunes and tremendous efforts in testing with some technologies that have no need to acquire.

4. There is a niche of private market who has no problem in letting the insurance company have access to information of their vehicle use.

5. There are many niche markets that value sufficiently certain advantages offered by the geolocation (fleets, company cars, leasing, antitheft, etc.) to admit it, and consequently be open to a kind of insurance policy with PAYD Detailed information.

The technology is reducing tremendously the costs of devices with embedded software and geolocation services that can be offered through them. A special hardware solution dedicated to the implementation of PAYD is possible only for very ambitious projects.

If somebody wants that their address is erased of my distribution list, please return me this message with the word “DELETE.”

As always, I have upgraded my “Pay As You Drive Directory ” and my News Bulletin.

Yours sincerelly

Salvador Minguijón Pérez.
Interim Management.
+ 34 649 49 17 70
+ 34 976 59 58 71
Email: s.minguijon@salvador-minguijon.es
Web: http://www.salvador-minguijon.es

“Pay As You Drive” Bulletin May 2008

sminguijon — Wed, 28 May 2008 17:09:02 +0000

—– Original Message —–

From: Salvador Minguijon Perez

To: s.minguijon@teleline.es

Sent: Wednesday, May 28, 2008 5:44 PM

Subject: “Pay As You Drive” Information

Dear Ladies and Gentlemen,

Due to a tragic family event, I have been inactive in this project during 3 months. When I began to upgrade my database, I was surprised by the speed with which the events are happened, until the fact that I cannot comment all the important news that have taken place to avoid this report be of a non reasonable extension.

It seems that another change in the profile of the technology companies that are promoting this project has taken place. At the beginning they were very big companies, as IBM, T-System or Siemens, but we soon saw that those that were really able to make a place in the market were the companies specialized in fleetsmanagement. And we also saw how these were immediately substituted by companies specialized in anti-theft and recovery of vehicles. Now they are the companies of M2M, those that have interest in developing this market which in fact is only a part of a wider and general market for them.

We have to mention to Navento that is closing a distribution agreement with Telefónica (in whose group is also O2), and in this context we also have to mention to Telit-Xirgo, IMETRIK, Pinkcar, the agreement between Mio and Sara or the activities of Europ Assistance.

But we should not forget companies with an activity guided towards the PAYD like Iris-global, Stok or PTV that far from being demoralized by the concession of the prize “Big-Brother”, have taken as a challenge demonstrating that this project doesn’t have to be disrespectful with the privacy of their clients.

And neither the anti-theft companies that feel very comfortable in their relationships with the insurance companies and are also forced to fight to stay in a market that is suffering a deep transformation.

But what is really interesting it is the dynamics that is generating in France, where unlike the rest of the countries, they are the own insurance companies and not the technological ones those that are promoting this project. We have projects of Groupama, MAAF, AXA, Solly Azar and even of Aviva (Norwich Union) who have a license for exploitation in France of the patent EP 0700009. This dynamics has been possible for the clear pronouncement of the CNIL, to instances of the activities promoted by L’Argus de l’Assurance.

Everything seems to indicate that in Germany we could also meet with a similar phenomenon, because there are many activities, expectations and discussion forums on this project, there is an entity Bfdi that is usually clearly pronounced on the related topics with the defense of the intimacy and Swiss Re, which is a discussion promoter in many occasions.

There are some very interesting documents, the first one belongs to the Swiss government, and it is accessible in German, French and Italian and it refers to the defense of the privacy and the projects PAYD. The second refers to the problem of the traffic congestion in England. The third is a presentation of Mr. Voggenauer, only available in German and the fourth refers to the impact of this project in the improvement of the environment.

If somebody wants that their address is erased of my distribution list, please return me this message with the word “DELETE.”

As always, I have upgraded my “ Pay As You Drive Directory ” and my News Bulletin.

Yours sincerelly

Salvador Minguijón Pérez.
Interim Management.
+ 34 649 49 17 70
+ 34 976 59 58 71
Email: s.minguijon@salvador-minguijon.es
Web: http://www.salvador-minguijon.es

“Pay As You Drive” Bulletin January 2008

sminguijon — Sun, 27 Jan 2008 21:58:00 +0000

—– Original Message —–

From: Salvador Minguijon

To: s.minguijon@salvador-minguijon.es

Sent: Sunday, January 27, 2008 10:52 PM

Subject: “Pay As You Drive” Information

Dear Ladies and Gentlemen,

As I exposed in my answer to Mr. Engel of the company Stok, the technology companies are increasing, with their continuous evolution and desire to access to the “Pay as you drive” market, the uncertainties that the insurance companies have, obtaining the contrary result of the one that they expect.

As an example I have taken some information of the insurance company Sara, which offers a policy based in this concept.

In one of their advertising pamphlets we can observe a study on the use of the vehicle in Italy and the saving analysis for a user that only makes 6000 km a year.

I also enclose a detailed pamphlet of how the billing of the policy works. You can translate the text with an excellent quality using the Google translator.

You can observe that it is an incipient project, guided to a very concrete market and taking advantage of the fact that the automobile insurance in Italy is very expensive.

On the other hand we have the technology companies that have been able to reduce the cost of the equipment that install the vehicle from 600 up to 150 Eurus in 6 years, and probably will reach 75 Eurus in other three years.

The technical perspectives are permanently changing, just as examples of the last novelties we have tremendously ambitious projects as the one of Magneti Marelli with Telecom Italy. Trafficmaster offers the non English insurance companies a complete solution, being this the only way to endorse an experience of years. PTV, far away from being depresed when receiving the Big-Brother prize, has depthly revised its project to guarantee the confidentiality of the information, and offers a technological capacity out from any doubt. Companies with a radically innovative and aggressive position marketing as Navento. Or companies of allways like Cobra firmly bet in this market.

An unbridgeable breach has opened up among what the technology companies offer and what the insurance companies (which are the clients after all) need or are willing to prove and that certainly cannot be an application that has hope of 3 year-old life.

It is difficult to think that this situation can be solved, so everything seems to indicate that at the end the own technology companies will be those that will offer the policy “Pay as you drive” directly to the user, negotiating their global contract later on with insurance companies.

If somebody wants that their address is erased of my distribution list, please return me this message with the word “DELETE.”

As always, I have upgraded my “ Pay As You Drive Directory ” and my News Bulletin.

Yours sincerelly
Salvador Minguijón Pérez.
Interim Management.
+ 34 649 49 17 70
+ 34 976 59 58 71
Email: s.minguijon@salvador-minguijon.es
Web: http://www.salvador-minguijon.es

“Pay As You Drive” Bulletin December 2007

sminguijon — Mon, 31 Dec 2007 12:08:58 +0000

—– Original Message —–

From: s.minguijon@salvador-minguijon.es

To: Salvador Minguijon

Sent: Monday, December 31, 2007 1:03 PM

Subject: “Pay as you drive” Information

Dear Ladies and Gentlemen,

The most important notice of this month is that the Holland government wants to establish a compulsory Road Pricing System in all the territory in the year 2016. We must take into account that a project like this one presents big similarities with the “Pay as you drive” one and that Holland is the origin of most of the world leader telematic enterprises.

The Austrian publication Oekonews stress the relation between Road Pricing and the emission of greenhouse gases.

It continues an intensive activity in France due to this project. E-bonus has been the last one in submit its proposals. Its particularity is that it processes the information in the own vehicle to avoid that a very detailed information could infringe the law.

It has also been a notice that the MileMeter project has been in second place in the Amazon Web Services Start-up Challenge and the submission of an alternative in England to the project “Pay as you drive” by Amicus VMS focused to vehicle operators. It avoids any mention to the automobile insurance, and therefore the possible patent EP 0700009 and having to face Norwich Union.

But in my opinion the most important notice was the article of Ian Cowle in where he stress the possible human lives that the project “Pay as you drive” of Norwich could have saved during the year 2007. This has been a very annoying point for me the low repercussion that this aspect has taken in the project.

If somebody wants that their address is erased of my distribution list, please return me this message with the word “DELETE.”

As always, I have upgraded my “Pay As You Drive Directory ” and my News Bulletin.

Yours sincerelly

Salvador Minguijón Pérez.
Interim Management.
+ 34 649 49 17 70
+ 34 976 59 58 71
Email: s.minguijon@salvador-minguijon.es
Web: http://www.salvador-minguijon.es

“Pay As You Drive” Bulletin November 2007

sminguijon — Fri, 30 Nov 2007 09:24:35 +0000

—– Original Message —–

From: s.minguijon@salvador-minguijon.es

To: Salvador Minguijon

Sent: Friday, November 30, 2007 9:21 AM

Subject: “Pay as you drive” Information

Dear Ladies and Gentlement,Traqueau has made a market survey among the professionals of the sector of the insurance in France, with the conclusions that it exists the impression that in a short term this system will reach a quota between the 15 and 20% of the market, the third part of the insurance companies would be ready to market its product in less than two years and most of them in a period between 2 and 5 years. The main barriers are the legal framework and the privacy respect.The publication Zukunfsletter is manifested in the same way and doesn’t doubt to predict that this project will change the sector of the automobile insurance.

It is very interesting to contrast these informations with the declarations of Markus Rehle, a significant Allianz executive, in which he expresses his doubts about if this project can be implanted in a significant way in the individual market in a short term. Being Allianz, together with Axa, one of the unquestionable leaders of this market in Europe, it is easy to suppose that this project is not of his pleasure because it implies radical changes and difficulties in a business that both companies perfectly dominated.

The following step for the consolidation of this project has been carried out by Magneti Marelli announcing an agreement with Telecom Italy for the development of telematic applications for the automobile, where the project “pay as you drive” would have a very important part.

The really thing is that there are other similar projects in gestation phase. Meanwhile in Italy the companies usually communicate their intentions and projects as soon as they have intention of executing them, in the rest of Europe the companies only communicate things that are absolutely sure of achieving. This is possibly because the Italians mainly value the creativity and they are very tolerant with the errors, while in other countries of Europe what prevails is the reliability.

A sample of this is the existent confusion with respect to the state of the projects “Pay as you drive” based on manifestations of different companies. The reality is that the insurance company that has installed more devices of Octotelematics is Unipol and that the own Unipol, when describing its application, does not really talk about what we understand as “Pay as you drive.”

So that the peoble who don’t know anything about electronic, and so they can make an idea of the evolution of this technology, I recommend them to see the page 13 of the catalog that Harald Naumann has sent me. Impressive, isn’t?

I hope that I can inform you on what has happened with the patent EP0700009 next month. I am convinced that it will have a great repercussion in the dynamics of this project.

If somebody wants that their address is erased of my distribution list, please return me this message with the word “DELETE.”

As always, I have upgraded my “Pay As You Drive Directory “ and my News Bulletin.

Yours sincerelly

Salvador Minguijón Pérez.
Interim Management.
+ 34 649 49 17 70
+ 34 976 59 58 71
Email: s.minguijon@salvador-minguijon.es
Web: http://www.salvador-minguijon.es