Welcome!

Agile Computing Authors: Liz McMillan, Elizabeth White, Pat Romanski, Xenia von Wedel, Rishi Bhargava

Related Topics: @ThingsExpo, Java IoT, Mobile IoT, Linux Containers, @CloudExpo, @BigDataExpo

@ThingsExpo: Article

Insurance Telematics, Code Halos, Gamification and Privacy

Data ownership and privacy are two big issues that we all need to be thinking about these days

Data ownership and privacy are two big issues that we all need to be thinking about these days. Mobile, telematics and IoT technologies have reached the point that it is very easy and cost effective to track the location of just about anything.  What personal information are you willing to give up in order to get a better insurance rate?  We are seeing more business models these days based upon personal data and tracked activities and locations which should be giving each of us a sense of urgency to think through these issues.

Peter Abatan, Program Manager for Mobility Services with Studio13 at Cognizant shares some of these considerations with us here.

A couple of weeks ago, Quindell and RAC in the UK announced that it has launched a £100m scheme for black boxes to be installed in cars. RAC aims to sell these telematics tracking devices to its 2.5 million members in order to help safe drivers reduce their premiums, plus the opportunity to drive additional revenue by monetizing the data (using the Code Halos).

I am not too sure that this strategy is something that most drivers will buy into for the following reasons:

  1. It does not really offer the customer a substantial benefit that is quantifiable. If the customer realizes that this approach will only save them a nominal cost it is unlikely to motivate them to pay for the device to drive the premium down by just £100 or there about.
  2. I never automatically renew my motor insurance with the same company, as I am always searching for the best deal when my policy is about to end. In general, car policy buyers are becoming more informed to make sure they do not renew their insurance without shopping around for the best deals.

Today the conversation around privacy is a very sensitive issue, and RAC may find out that the desire to lower premiums may be trumped by the need for privacy. For example we already know that the probability of having an accident during the night is higher than during the daytime. If as an individual I do more driving in the night than in the day, why would I have a box installed in my car when it will drive up my premiums in the long run?

There is also the issue of driver's location being monitored, and the law enforcement asking to give up data on an individual's whereabouts. These are decisions that will weigh heavily on the mind of customers as to whether or not they should have these boxes installed.

At the beginning of the year at the annual Consumer Electronics Show (CES) in Las Vegas, Ford marketing head Jim Farley sparked a fury among privacy advocates when he said during a panel discussion, "We know everyone who breaks the law, we know when you're doing it". He went on to say "We have GPS in your car, so we know what you're doing. By the way, we don't supply that data to anyone."

The alternative approach should be that the customers choose to install the black box themselves and choose which data they want to share with their insurance company. The more data they are willing to share the higher the possibility for lower premiums, this with the option to no longer share that data at any time they wish, will make for a good proposition.

This is the whole idea behind the concept of the quantified-self. The individual is in charge of their data and they choose what part of that entire dataset they want to share or to withhold. This is why I see the RAC/Quindell initiative as a high-risk strategy that might not yield the returns that it is hoping for.

While the idea of giving holders of health or life policies heart rate monitors sounds like a ludicrous idea, on the other hand the idea of giving policy holders the opportunity to upload data to indicate that they have a consistent active lifestyle and not at risk of a serious health issue or sudden death might encourage some policy holders to share this data because they like what they have achieved to reduce any of the aforementioned risks and would like to be rewarded for it.

It is important to note that for some policyholders, the reward has to be seen as substantial, otherwise it may not be enough for them to want to participate. This is where gamification comes into its own and where web portals like MapMyRun andTraining Peaks would begin to benefit from helping to develop the concept of the quantified self.

In using gamification to create excitement, there also has to be rewards for consistent performance. Independent portals for driving behavior where car drivers can show off their good driving skills may give insurers the opportunity to reward good driving not just in terms of lower premiums but rewards through gamification. These rewards will go to individuals whether they hold the sponsors policy or not.

According to a USA Today editorial, it was reported that 94% of all new cars manufactured today have black boxes. If that is the case, then car companies need to begin open up that data source such that it is easy for the owners to monitor and manage their own data, which can in turn be provided to the insurer should they desire to do so. This will cause initiatives like RAC/Quindell to review its strategy, as it will eliminate what is already considered a very fragmented market in terms of device and data interoperability.

This should be the approach that RAC and Quindell considers without locking the customer into a black box that would no longer be useful should the policyholder decide to change insurer. Hence, it makes sense that insurers do not reinvent the wheel but seek to partner with car manufacturers so that car owners can access that data that insurers need to reward what is considered good behavior on the roads.

References:
1. USA Today. January 15, 2014. - Is your car's black box the next privacy battlefield?

Peter Abatan is a project manager and a team member of Studio13, which provides product and service design to a wide variety of Cognizant's customers.

****************************************

Kevin Benedict Writer, Speaker, Editor Senior Analyst, Digital Transformation, EBA, Center for the Future of Work Cognizant View my profile on LinkedIn Learn about mobile strategies at MobileEnterpriseStrategies.com Follow me on Twitter @krbenedict Browse the Mobile Solution Directory Join the Linkedin Group Strategic Enterprise Mobility Join the Google+ Community Mobile Enterprise Strategies Recommended Strategy Book Code Halos Recommended iPad App Code Halos for iPads

More Stories By Kevin Benedict

Kevin Benedict is an opinionated Senior Analyst at Cognizant's Center for the Future of Work, SAP Mentor Alumnus, speaker, writer, and mobile and digital strategies expert. He is a popular keynote speaker, and in the past three years he has shared his insights into mobile and digital strategies with companies in 17 different countries. He has over 30 years of experience working with enterprise applications, and he is a veteran mobile industry executive. He wrote the Forward to SAP Press' bestselling book on enterprise mobility titled Mobilizing Your Enterprise with SAP, and he has written over 3,000 articles.

@ThingsExpo Stories
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.