Exhibit 1015
`
`oovyauzs
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`AN INTEREST IN BLACK MAGIC - MOTOR TECHNOLOGY.
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`633 words
`
`1 January 1994
`Insurance Age
`INAGE
`25
`
`English
`Not Available for Re—dissemination.
`
`The latest developments in motor technology might seem like science fiction, but many of them will become the
`norm, says Tim Collison.
`
`The Duke of Wellington once said of steam locomotives: "| see no reason to suppose that these machines will
`ever force themselves into general use."
`
`Unfortunately, the insurance industry has at times been guilty of displaying a similar lack of foresight when it
`comes to matters of technology. But, shaking off this image, commercial motor underwriters are starting to sing
`the praises of some ingeniously applied technology.
`
`Black box data recorders, better known for their use in aircraft, are starting to be fitted in fleet vehicles, and could
`have a significant impact on claims experience. Motor insurers are also learning of the benefits of satellite
`navigation systems.
`
`The black box is a computerised unit installed near the dashboard of a vehicle. Drivers are issued with a
`personalised data cartridge, which is inserted at the beginning of a shift. The vehicle is immobilised until the
`cartridge is loaded.
`
`The unit records information such as driving speed, time and distance travelled and fuel consumption. At the end
`of each shift, data from the cartridge is downloaded on to a personal computer.
`
`The fleet manager can then use the information to assess operating efficiency and to analyse the performance of
`drivers in terms of exceeding maximum speeds, engine idling time and harsh deceleration.
`
`"The box can be used to build up a psychological picture of the driver, as it can indicate anxiety and stress
`according to driving habits," says Michael Rose, chief executive of JFD Insurance, which is involved in marketing
`the ICS Black Box.
`
`"Drivers who use the black box have far less accidents. Research conducted by Safety Assessment Monitoring
`with On—Vehic|e Automatic Recording has found that boxes reduce accident rates by 38%."
`
`While this could have a dramatic impact on claims experience, it is still early days, and Landmark Insurance is the
`only company currently offering an upfront premium discount for fleets fitting the unit.
`
`Most insurers agree that the device is an invaluable aid to risk management, but stress that it is only one aspect
`of the overall strategy. Peter Dower, Zurich's motor underwriting manager, commercial division, warns that the
`black box could meet with resistance from drivers. "Drivers might see it as Big Brother, which could cause
`employment problems for risk managers."
`
`The area of satellite technology is far more of an unknown quantity for the world of insurance. Global Positioning
`Systems (GPS), widely used in shipping for precise navigation, are now being developed for cars.
`The system uses a constellation of satellites, developed by the US Department of Defense which, with the right
`receivers, can pinpoint a position anywhere on the globe to within a few metres.
`
`Ford is developing a GPS system that will combine an emergency location facility with a stolen vehicle tracking
`system. Both these functions use the vehicle's GPS receiver to locate its position, and this information is relayed
`Page 1 of 2 © 2012 Factiva, Inc. All rights reserved.
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`Llberty
`Mutual
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`1015
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`Exhibit
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`Page 000001
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`to a central base using cellular telephony. The emergency services are then notified of the vehicle's whereabouts
`or, if the car is stolen, it can be tracked using a continuous satellite update.
`
`Ford hopes the device will cost as little as #200—#300. It could have the same potential for reducing motor claims
`that Tracker promises.
`
`But electronics experts at the PA Consulting Group think GPS technology has wider implications for the insurance
`industry, as it can produce all the data a black box can and record the vehicle's location. "The information could
`be used to accurately rate premiums according to styles of driving and locality of use," says PA's James
`Schoenenberger.
`
`Many insurers regard this as science fiction. Only time will tell.
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`Page 2 of 2 © 2012 Factiva, Inc. All rights reserved.
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