1. Innovate Products and Services
Greg Meyer, COO, CSAA Insurance Group
Nick Eppinger, Sr. VP Insurance Sales & Membership, AAA Mid Atlantic
CREATE THE PERFECT CUSTOMER EXPERIENCE
EXPAND DISTRIBUTION AND GROW MEMBERSHIP
CONNECT TO THE DIGITAL WORLD
GROW
RUN
TRANSFORM
FOSTER A CULTURE OF INSIGHT AND INNOVATION
COMPLETE AND OPTIMIZE OUR MEMBER-CENTRIC PLATFORM
ACCELERATE AND INNOVATE PRODUCTS AND SERVICES
Before I speak about IP&S, our #1 priority is to continue to improve transactional quality through continuous monitoring, identifying problems, and mitigate member impacts
I am also going to provide a quick review of SS. Please keep in mind he difference between SS rating and underwriting models and PAS which is our policy administration platform.
Finally, when we talk about our efforts to A & I P & S Nick Eppinger is going to join me give us his view on the exciting rollout of the New UBI in mid atlantic

2. Signature Series Signature Series Schedule
Auto – Launched in all states except CA
Home – Launched late 2014 in AZ, PA, VA, NJ
Will launch in all other states, excluding CA, by late 2016
Convert existing book by year-end 2017
Signature Series Design Homeowners
Leverages affinity and unique data of 19.7 million members
Member loyalty benefits:
By peril rating
Territorial factor refinement (to reflect risk concentrations)
Inclusion of CAT-specific rating variables (e.g., elevation and distance to coast)
Expanded number of market tiers
Incorporate Signature Series Auto rating variables
By any measure we use to assess SS is market leading – rating factors, price dispersion and granularity
_ most importantly SS offers highly competitive and sustainable rate for target high retention and high life time value members.

3. Signature Series Auto Results
MULTILINE VS MONOLINE CLOSE RATIO – (ALL)
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Multiline
Monoline
Close Ratios
Close ratio for multi-line members is extraordinary relative to market (varies by state)
Market-leading price segmentation plan highly competitive for lowest loss frequency, high retention and high lifetime value members.
Superior insurance risk selection creates sustainable competitive pricing
Success in target segments also presents challenges in “Competitive” tiers
100%
80%
60%
40%
20% 0% J I H G E D C B A F
(Best)
(Worst)
Annualized Retention % (Includes mid-term cancellations)

4. Accelerate and Innovate Products and Services
AutoPay
Connected Home Market
Joint-Use Vehicles
UBI
We are going to briefly review our plans for …

5. Create Usage-Based Offering for Members
Foundational
Competitively priced UBI product
Competitive
Telematics benefits via a mobile app that displays driving stats
Leading
UBI compatible with multiple devices that incorporates connected-car technologies
Integral part of a connected car
AAA Arizona distributes 3,000 units in 2014
Metromile offers mobile app with telematics dongle so users can view vehicle location, miles driven, and engine status
Progressive and telematics providers including OnStar launch next-gen connected car capabilities
UBI
UBI is a core component of automobile insurance.
Over 20% of members will purchase our new UBI product, UBI gives members ability to manage the cost of their insurance
UBI is being shown to reduce the riskiness of young drivers over time in longitudinal studies
The companies who offer UBI discounts will attract and retain the cohorts of young lower risk drivers
I am going to ask Nick Eppinger to speak about UBI

6. Address Growing Trends of Sharing Economy
Foundational
Develop ride-sharing endorsements in key markets
Competitive
Partner with sharing companies to distribute products and stay abreast of emerging trends
Leading
Partner with sharing companies to distribute products and stay abreast of emerging trends
MetLife partnered with Lyft to develop and distribute product for rideshare drivers
Note: Rideshare and Home-Share markets uncertain – competitors cautious
Of course consumers change over time and one of the best examples is the proliferation of the sharing economy.
We need to make sure that we offer members the same level of protection and security if they are operating their vehicle part time commercially.
By showoff hands, how many people in the audience have used UBER or LYFT?
In 2015 our plan is to design and file a RS product
Joint-Use Vehicles

7. Enter Connected Home Market
Foundational Offer policy discounts to customers with connected home features
Competitive
Partner with connected home companies to streamline insurance discount offerings with connected home products
Leading
Partner with sharing companies (i.e., TNCs) to distribute products and keep abreast of emerging trends
Connected Home Market
State Farm offers “Control Your Home, Protect Your Family and Save Up to 10% with Home Automation and Security”
Liberty Mutual and Vivint, one of the nation’s largest home automation companies, jointly offer insurance discounts with the purchase of connected home products
Home technology is undergoing dramatic change and the reliability and cost of technology will continue to drive utilization.
With the IGs investment in UBI, we are developing the same processing capabilities and expertise required to process and analyze vast amounts of connected home data.

8. Create E-Products for Simplicity
Foundational Eliminate certain fees or provide discounts for some mix of e-doc delivery, auto-pay, and self-service
Competitive
Deliver complete, easy-to-use online purchase with consultative tools packaged with e-docs, auto-pay & self-service – full e-product” experience
Leading
Allow for seamless migration to other channels during the lifecycle of the policy, especially at or after renewal – including assignment to local agent
Allstate offers 10% eSmart discount for an ePolicy
Progressive discounts
Sign online
Internet (originate quote online)
Paperless (bills/docs via )
Esurance
Coverage Counselor gives users a few simple questions to answer for a list of coverages to consider
Bank of America offers low-balance checking accounts (ATM or online-only) to some segments, e.g., college students, upgrading to no-fee access to tellers and other services as balances grow
Of course we need to offer members an experience when, where, and how they want.
Each year, an increasing percent of consumers (especially younger consumers) want to transact with their company digitally. They also want lower costs.
E products offer significant reductions in costs, satisfy a preferred method of interaction for a growing % of members, and allow us to offer more competitive prices.
E products will be one of the tactics we use to drive expenses and prices lower for younger drivers
I am going to turn it back over to Deb
E-Products
AutoPay