How the IoT caused the Internet of Upside Down

How the IoT caused the Internet of Upside Down
The architecture around the Internet of Things and the constraints it poses has fascinated me for a long time. The good news for insurers is integrating the Internet of Things into insurance processes has some fairly common patterns now as described in my recent report []. For those with responsibility for the infrastructure of the Internet however, it is providing some interesting headaches. 
Upside down?
Why do I say upside down? In the early days of the Internet it was a collection of machines each with broadly the same importance connected together. As information services moved onto the Internet, followed by commerce and retail sites, banks and insurers and then streaming companies the Internet shifted more towards many machines seeking to consume from a (relatively) few machines. 
To support this demand architectures evolved to n-tier structures where data storage areas sat behind application servers, which sat behind web servers and then, not that long ago, caching servers and content delivery networks. 
The Internet has become a pyramid with a consumers machines at the bottom, hooked up to broadband geared towards downloading content quickly and increasingly powerful infrastructures delivering that content to be consumed. 
And then homes became data rich farms…
Suddenly homes are the sources of data everyone wants! Key information possibly of use to insurers even, now sits on devices at the bottom of the pyramid. In practice the Internet is shifting more towards the structure it had originally, but the infrastructure supporting todays services is not well suited to this new paradigm – or perhaps one that has re-emerged. 
In practice, most of this activity has moved from a pyramid to a less structured cloud already but software of the Internet is still catching up. 
So as you're looking at InsurTech firms or attending InsTech groups spare a thought for those poor architects and operations staff of the Internet and the headaches you're causing. 

Are insurers ready for the milenial and Z generation? A Latin American perspective.

Are insurers ready for the milenial and Z generation? A Latin American perspective.
At corporate level we usually conceive and refer to technology focused on the internal use and how to reach to the outside world to provide better products, have more efficient value chains and improve service.  For example insurance portals or technologies that will improve call center performance. This conception has been very useful to the insurance industry enabling evolution and innovation. Let’s take the UK insurance market for example. The auto industry started mainly as broker based but then evolved into direct insurance. It got somehow more sophisticated with the segmentation of net-worth customers. In this sense, the use of technology has been usually seen as a support to the business, but more and more it is becoming a central part of the business model for many insurers, especially for those new and disruptive players. Following the UK example, the use of telematics and “pay as you drive” and “pay how you drive” type of insurance products has lately enabled disruptive models that also integrate internet, mobile and social media to deliver products and services. These insurers recognize the fact that consumers have incorporated technology into their daily lives and that they expect from insurers the same level of engagement and user experience they have with other players in other industries such as Apple and Amazon just to mention two. Computers are everywhere, in the office, at home, in our appliances, and electronic devices; even phones are now computers, and consumers are using them to interact with people and companies by web access, e-mail or social media. Mobility is a fact that insurers need to recognize as they deploy new technology driven strategies. A usual misconception is that emerging markets are behind most mature markets in terms of internet, social media and mobile usage. You might be surprised to know that Latin America for example:
  • Had 231M internet users in December 2011 (10% of the world internet population);
  • Had 145M Facebook users in April 2012 (18% of worldwide Facebook users), and
  • Had +500M mobile connections as from March 2010 (86% of the Latin American population)
As for smartphones, clearly of more interest for deploying self service capabilities for agents and upper income consumers:
  • Brazil has more smartphone users than France or Germany
  • Brazil and Mexico together have more smartphone users than Australia has inhabitants
  • Argentina smartphone penetration (24%) is better than in Germany
Latin American countries also present above-average usage patterns in many areas:
  • 65% of Mexican smartphone users search on their phones every day, compared to 57% in the U.S.
  • 90% of Argentine smartphone users use their phones to access social networks, compared to 63% in Japan
  • 29% of Brazilian smartphone users have changed their minds about a purchase while in a store due to research conducted on their phone, compared to 15% in Canada
Mobile is changing the way Latin American consumers interact with the world…
  • 57% of Brazilian smartphone users read newspapers or magazines on their phones
  • 73% of Argentine smartphone users check email on their phones every day
  • 81% of Mexican smartphone users watch video on their phones
 …Especially when it comes to shopping
  • 26% of Mexican smartphone users have made a purchase on their mobile
  • 45% Brazilian smartphone users have purchased on their computer after researching on their mobile
  • 82% of Argentinean smartphone users have researched a product/service on their mobile
Usage data and user behavior is indicating that engaging with consumers and stakeholders through the use of internet, mobile and social media makes sense. Though, our research shows that the priorities and investments by Latin American insurers in these areas are very low. There might be some isolated efforts, but no integral approach to embrace these technologies to provide an improved customer experience which could result in growth, retention and efficiency. This seems to be the time to start acting, unless the insurance industry in the region wants to wait and see if a disruptive outsider sets the new standard. Worth the risk?

Happy birthday WWW

Happy birthday WWW

The World Wide Web is born in March 1989 in the CERN premises. In 20 years, internet has changed the face of the world and I wonder whether Tim Berners-Lee and Robert Cailliau – its inventors – knew at that time that they had developed a revolutionary way to communicate and exchange information. More about the birth of the World Wide Web can be reached here: and I encourage all our blog readers to have a look at this page.

In 20 years, the internet has revolutionized our world. Could you imagine yourself living nowadays without having an internet access? When trying to think of it I find myself a bit lost! Can you imagine yourself sending a fax each time you need to communicate something to a colleague or a client? or waiting for the next TV news broadcast to get a brief information about stock markets around the world? Would you be patient enough to wait till the next day to receive comments and opinions of informed observers and analysts about top news? I can definitely not imagine such a situation. For me it would be a nightmare.

Thank you Tim and Robert!