Welcome!

Big Data Journal Authors: Yeshim Deniz, Elizabeth White, Carmen Gonzalez, Liz McMillan, Dana Gardner

Related Topics: IoT Expo, Java, Wireless, Linux, Cloud Expo, Big Data Journal

IoT Expo: Article

Insurance Industry Disrupted, the Quantified-Self

Wearables, Telematics, Code Halos and Digital Transformation

By Peter Abatan, Studio Thirteen, Cognizant

The New Finance Meet-up group is currently running a 6 part series over a period of 6 months to determine what could disrupt the Insurance industry. In the most recent meet-up the focus was on how the quantified-self could disrupt the insurance industry. I came away from the meet-up with the conclusion that smart insurers will begin to develop products that are more customizable to the individual needs rather than offering products desiged on demographics, i.e., where you live, your age group, family size etc.

So what is the quantified-self? The quantified-self is the data that has been accumulated on the individual's behavior, health status, medical conditions and overall well-being by the individual themselves (We call this data Code Halos at Cognizant). In the future many experts believe that it will be the basis on which insurance products are sold to customers.

There is still a lot of controversy around ownership of data and whether once that data has been released to an insurer whether it can be withdrawn, and whether an adverse event could impact or prevent an individual from being able to buy an insurance product. However, many experts have come to the conclusion, that smart insurers would use this adverse data to help customers to manage that event better rather than use it as an opportunity to charge very high premiums.

For example if you drive more in the night you are three times more likely to have an accident than someone who drives during the day (Forbes). In this scenario, your insurance company can help with providing tools that minimize the probability of that happening instead of charging very high premiums for someone who has driven in the night for the last 20 years and never had an accident. There are no guarantees that the person would never have an accident in the future, but the tools provided can help reduce that risk to a minimum.

There were about 40 to 50 delegates that attended and attendees came from new start-ups, the technology and insurance sectors. The session started with a product feature from Francis White from AliveCor. AliveCor is a heart monitor that provides individuals with the ability to track heart health anywhere, anytime at an affordable cost, you can see more about the device at www.alivecor.com. What is great about this company is that it has a cloud strategy in which you can grant access to your ECG data. It also has alerts that will warn you of any impending dangers and therefore recommend that you contact your physician. The device is portable enough to fit onto the back of a smartphone and takes the ECG reading from both thumbs allowing you to take readings anytime and anywhere.

The second product feature was by Matt Lewis, the founder of Quantid (www.quantid.co), a start-up that is aiming to revolutionize the health industry. Quantid already does what MapMyWalk and Training Peaks already does and more. Quantid describes itself as the Facebook of quantified human data. It is a social networking platform, enabling users of personal tracking devices and apps to make profound improvements to their health, fitness and overall well-being by delivering insights and analysis of their quantified personal data. Although at the time of writing this report their website was down, I can say that the founder has some well meaning ambitions.

Quantid supports a rich set of features; the application integrates with most popular tracking products on the market, making it easy for users to access all their personal data aggregated within a single platform; it allows users to share specific datasets with friends, doctors and other practitioners; and it offers the ability to set reminders, goals and challenges. Quantid plans to amass an enormous database of quantified human data. "By leveraging the power of big data analytics we plan to develop sophisticated algorithms to identify trends and correlations, enabling our customers to generate powerful insights into their behavior, health status, medical conditions and overall well-being." The key challenge to Quantid is the matter of trust, and the guarantee that the customer's data would never under any circumstances be sold or given to third parties.

The host for the meet-up, Eddie George, took 10 minutes describing what thequantified-self is and how wearables are key to this concept. He described it as all the vital health and other data that could affect how you are offered insurance premiums. Your health and activity data or the lack of it will, in the future, affect the premiums that you pay for health and life insurance.  It will also impact your vehicle insurance. This also led to the question as to how much of your quantified-self do you let your insurance company know about you in order to offer a fair premium.

George identified 3 challenges that face the quantified-self namely, aggregation, analysis and access. Aggregation in the sense that currently individuals are in possession of different types of data related to their health and physical training/activity, therefore it might make analysis a lot more challenging, also access to this data is highly siloed and spread across different providers.

After George's description of quantified-self we were all split up into break out sessions where we discussed whether there is a benefit for insurance companies and the individual when it comes to this subject matter? One key outcome from my break out group was that, if insurance companies could use the quantified-self to help the individual to make better decisions, rather than punish through hefty premiums it will guarantee the survival of that organization in what is considered a very competitive landscape. Another lesson shared was that insurance companies should start to use technology and the quantified-self to bring individuals on the fringe who normally find it difficult to get insurance into the fold and make the insurance products more accessible to these group of people.

From the number of representatives from the insurance industry at the meet-up, one thing was clear, the insurance industry knows digital transformation is imminent, and they do not want to be caught unawares when this happens.  They want to approach it from a position of strength, rather than from a position of weakness by developing a closer and stronger relationship with their customers by offering better products and services that are value for money.

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


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

 

Kevin Benedict Digital Curator, Writer, Speaker 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

 

***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and digital transformation analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

More Stories By Kevin Benedict

Kevin Benedict is the Senior Analyst for Digital Transformation at Cognizant, a writer, speaker and SAP Mentor Alumnus. Follow him on Twitter @krbenedict. He is a popular speaker around the world on the topic of digital transformation and enterprise mobility. He maintains a busy schedule researching, writing and speaking at events in North America, Asia and Europe. He has over 25 years of experience working in the enterprise IT solutions industry.

Latest Stories from Big Data Journal
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Having just joined a large technology company with 20 years of history, it would be suicidal to believe that I can immediately move the entire organization to the DevOps mindset and model. For those not familiar with the term, “Eventual Consistency” is a model used in distributed computing to ensure high availability. In this context, it’s a model for replicating best practices and automation across IT teams and business units. The logical place to start with automation is the on-boarding of a ...
The Open Group and BriefingsDirect recently assembled a distinguished panel at The Open Group Boston Conference 2014 to explore the practical implications and limits of the Internet of Things. This so-called Internet of Things means more data, more cloud connectivity and management, and an additional tier of “things” that are going to be part of the mobile edge -- and extending that mobile edge ever deeper into even our own bodies. Yet the Internet of Things is more than the “things” – it me...
Fujitsu has a long and demonstrated history delivering world-class solutions that enable businesses to succeed in a highly competitive market and ever-evolving technology landscape. The Fujitsu Cloud ISV Partner Program is one more way we’re delivering exceptional value to our customers, where we focus on helping companies transform and deliver their solutions in an “as-a-service” model from our cloud. Our aim is to work closely with leading solution providers to take full advantage of not only ...
The emergence of cloud computing and Big Data warrants a greater role for the PMO to successfully manage enterprise transformation driven by these powerful trends. As the adoption of cloud-based services continues to grow, a governance model is needed to orchestrate enterprise cloud implementations and harness the power of Big Data analytics. In his session at 15th Cloud Expo, Mahesh Singh, President of BigData, Inc., to discuss how the Enterprise PMO takes center stage not only in developing th...
General Electric (GE) has been a household name for more than a century, thanks in large part to its role in making households easier to run. Starting with the light bulb invented by its founder, Thomas Edison, GE has been selling devices (“things”) to consumers throughout its 122-year history. Last week, GE announced that it is officially leaving that job to others. While the lighting division will stay, GE will now turn its attention to selling industrial machinery and analytics as a service t...
Come learn about what you need to consider when moving your data to the cloud. In her session at 15th Cloud Expo, Skyla Loomis, a Program Director of Cloudant Development at Cloudant, will discuss the security, performance, and operational implications of keeping your data on premise, moving it to the cloud, or taking a hybrid approach. She will use real customer examples to illustrate the tradeoffs, key decision points, and how to be successful with a cloud or hybrid cloud solution.
For the last hundred years, the desk phone has been a staple of every business. The landline has been a lifeline to customers and colleagues as the primary means of communication – even as email threatened to render the telephone obsolete. For some purposes, like conference calling, there was simply no substitute. That is, until a few years ago. With all due respect and apologies to Mr. Alexander Graham Bell, the desk phone is becoming just one solution, out of many devices, used for the modern...
Software is eating the world. Companies that were not previously in the technology space now find themselves competing with Google and Amazon on speed of innovation. As the innovation cycle accelerates, companies must embrace rapid and constant change to both applications and their infrastructure, and find a way to deliver speed and agility of development without sacrificing reliability or efficiency of operations. In her keynote DevOps Summit, Victoria Livschitz, CEO of Qubell, will discuss ho...