Welcome!

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.

Latest Stories
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...