Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Upcoming SlideShare
What to Upload to SlideShare
Next
Download to read offline and view in fullscreen.

Share

Innovation Cafe - Discussion Paper

Download to read offline

This whitepaper was produced as part of the "Innovation Cafe," a facilitated dinner discussion. The topics discussed in this paper are: (1) Real Time Data and Insurance; (2) Ethics and the Machine; (3) Tiny Data Collection Forms vs GDPR

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all
  • Be the first to like this

Innovation Cafe - Discussion Paper

  1. 1. Hosted By: Sponsored By: Published By: INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 12TH OCTOBER 2017 www.instech.club, December 11th, 2017, Hilton Canary Wharf, London Innovation, Future Technologies & AI for Insurance
  2. 2. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 2 | w w w . i n s t e c h . c l u b The Meeting Place for Top Insurance, Broker and Instech Executives in Europe Instech.club is designed to give insurers, brokers, re-insurers and instech companies new ideas, strategies and networking they need to win the innovation and disruption game. Chief Operating Officers, Chief Innovation Officers, Chief Marketing Officers, Chief Data Officers and Chief Technologists from the top 250 insurance and broker companies form the advisory board and the panel of speakers and participants. Dozens of innovators will be joining the panels and debates, with some of the most senior C-level executives from the world’s largest insurance giants, as well as medium size underwriters, brokers and small companies, to explore the future impact of this technology on your business. In short, all of your competitors, partners and future employers will be at this event! instech serves as a source of new ideas, proven strategies and meeting place for both top established insurance companies, instech innovators as well as investors. A New Approach Informal discussion formats such as dinners or networking drinks often bring together a wide range of experiences and deeply knowledgeable attendees, however there is rarely any formal outcome that captures the knowledge being discussed. Conversely, formal engagements such as conferences tend to only provide a superficial level of information due to the constraints of time and the need to adapt to a lower level of general knowledge on the topics discussed. Wzard Innovation use an innovative approach to address the key problems faced by other formats by combining industry expertise in facilitating interactive problem-solving workshops with an informal dinner discussion. The goal is to allow a depth of discussion and capture more detail on real problems and real solutions that can be provided as a take-away to participants and share with a wider audience.
  3. 3. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 3 | w w w . i n s t e c h . c l u b Introducing the InsTech Advisory Board Dinner …We’ve followed the same format for many years, this is the first time we have applied more structure, capturing insight and opinions to share with a wider audience. I hope you find this discussion paper helpful and informative. Katia Wyatt, Club2020 Founder and Host The InsTech Advisory Board Dinner involved two separate tables, for each topic table hosts navigated the discussion through three phases as outlined in Figure 1, leading the discussion from problems/challenges, through solutions/opportunities and finally identifying any actions that should be taken. Figure 1 - Discussion Stages Discussion Topics Three topics were selected for discussion: • Real Time Data and Insurance • Ethics and the Machine • Tiny Data Collection Forms vs GDPR
  4. 4. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 4 | w w w . i n s t e c h . c l u b Topic 1 – Real Time Data and Insurance The first topic originates from the challenges of increased data volumes being generated by various mobile and IOT devices. “Insurers are not ready for” real-time data In the first phase of discussion participants are encouraged to discuss their insights and problems. The differences of opinion were immediate with voices split between the feeling that companies do not yet have enough real-time data compared to the reality of insurers simply not yet being ready to ingest and utilise real-time data even if they had it. The consensus was there is a skills shortage for turning the increasing amount of data into valuable insight. “a shortage of skills” The debate on the types skills necessary demonstrated wide variation of opinion which ranged from feelings that current data scientists are not delivering enough insight, through to there being increasing needs for more data analytics. The volume of data is increasing and the paradoxical situation that on one hand companies are missing out on large volumes of data because they are ill prepared to capture it, compared to the broad acceptance that legislation such as GDPR will limit what can be collected in the future. Specific scenarios were discussed, the changes in car manufacturing for example has rendered much of the historical data gathered much less relevant. Meanwhile smart home devices are providing immediate benefits to customers but there is little real understanding regarding which of the devices give real value. “more bad data is better” than having less good data On the theme of Data Quality there was the surprising conclusion that more bad data is still better than less good data. A point that was counter to the general concern that the data being provided by current mobile devices could not be sufficiently relied upon. Figure 2 - Visibly sharing key points Inevitably the discussion returned to customer needs and everyone agreed that customers generally do not wish to talk directly to insurers and usage based insurance makes more sense to the next
  5. 5. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 5 | w w w . i n s t e c h . c l u b generation of customer. Two facts which lead directly to the need for real time pricing that differentiates based on actual customer behaviours. However, this is an approach that is more difficult than inferred pricing, but it is also expected to be the future approach. As this scenario becomes realistic customer lifestyle changes would need to be tracked automatically and produce micro- adjustments to the pricing. In concluding the discussion, the view was taken that the customer journey is changing and the touchpoints will no longer be directly with the insurers themselves. Action is needed to find out who is now closer to the customer and ensure these channels are open to us. “Usage based insurance” makes more sense If there is an unexpected opportunity then it will be moving insurance from a grudge purchase to a convenience service for which the customer is positive about. In bringing the topic to a close, the advisory board concluded: • There is a need for more skilled people able to deliver insight from data • The ability to record more data, irrespective of quality right now, is important • Customer demands are changing the touchpoints for insurance, identification of these new touchpoints is high priority • Real time data will be critical for delivering future value Throughout this session a Trello board was displayed for everyone to see, prompting a cross-fertilisation of ideas between the different tables. Figure 3- The Trello Board used for sharing key points on Real Time Data
  6. 6. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 6 | w w w . i n s t e c h . c l u b The Value Proposition Canvas was used to summarise in real-time the discussions which focused on the customer, driving out potential products and services that meet changing customer demands: Figure 4- Initial Value Proposition Canvas Further Thoughts – Real Time Data and Insurance The discussion on real time data could have taken many routes, a few other areas to consider on this topic might be: • Using Real Time Risk Models for Fraud Detection • Real Time Data for Cyber Security • Machine Learning evaluating real-time behaviours and identified pay-as-you-go needs (insurance because you’re looking for a new car, mortgage if you’re looking at houses, etc.) • The advance of Smart Cities, when everything is connected real-time, will there even be an option to opt-out? • There are already third-party insurance companies beginning to disrupt by using real-time lifestyle products
  7. 7. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 7 | w w w . i n s t e c h . c l u b Topic 2 – Ethics and the Machine Ethics are the code of conduct that distinguishes between good and evil, between right and wrong, and between virtuous and non-virtuous characteristics. The rapid advances in technological change are leaving many to debate the ethics of the changes we face. A debate largely driven by the advances in automation and artificial intelligence. Figure 5- Insight and Debate The discussion generated some passionate debate from the advisory board, with the opening gambit of “You can approve my claim with AI, but you cannot deny it,” being a general view. Others were unhappy with the term “AI,” pointing out that it was an over-used term and it should be redefined as the ability for self-learning. “You can approve my claim” with AI, but you cannot deny it! Several discussions were heard about the many fears regarding the risk of self- learning machines generating unconscious bias and thereby poisoning the underlying data. Several prominent examples of AI’s being closed down because they began to deliver racist and sexist responses were cited. Some took the view AI was just data analytics and good data analytics would generate the same results. This led to the question of the data being analysed, what types of data is it permissible – or ethical - to be collected on individuals in the first place? Here many members of the board had strong feelings that we cannot trust financial services organisations to behave ethically with the data if they were given a complete free reign, and legislation such as GDPR is essential to ensure only necessary data is collected. “Rules and Regulations” cannot keep pace Most members felt that rules and regulations cannot currently keep pace with the changes, so regulation is only part of the answer. The debate on regulation was particularly focused around the growth of AI solutions, without full traceability the “computer says no (and we don’t know why)” scenario is unacceptable. “An uninsurable sub-class” Bringing the discussion to insurtech, the question was raised whether the adoption of AI to track behaviours would create an
  8. 8. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 8 | w w w . i n s t e c h . c l u b uninsurable sub-class whose behaviour would be considered an unnecessary or excessive risk. Inevitably the powerful language recognition of Alexa (and others) was recognised, leading to the debate of whether bots could ever achieve a sufficient level of empathy. On a more pragmatic level the fear of job losses was a big concern irrespective of industry (the use of drones for A to B transport in the future for example). Similar to the previous discussion topic, the potential need for insurance companies to repackage their offering to meet customer needs was discussed. The need to break down traditional lines of business to meet future customer needs was highlighted a number of times. “Fear of Job Losses” a concern Bringing the discussion to a close there was agreement that customers would be happy to use AI to triage and advise, presenting better quality of information to staff, but would be unhappy if the result was a decline. Participants also agreed that Live Chat is an important stepping stone, it will lead to a chatbot and eventually provide the stepping stone needed to adopt AI. The “trolly problem” (a thought experiment where you are given a disaster scenario and have to decide how to respond when presented with the choice of killing a child or a doctor) is actually irrelevant, if the choice is made to simply protect the customer / driver. Using data to recognise the customer situation, or context, would open new opportunities to move from reactive insurance to proactive insurance, automatically determining the next course of action without the need for manual (human) involvement. Finally, and despite the slow pace of regulatory change, there was still the general view that regulation is needed to ensure ethical behaviour by corporations. Figure 6- Customer (Proposition Canvas)
  9. 9. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 9 | w w w . i n s t e c h . c l u b In bringing the topic to a close, the advisory board concluded: • There are mixed views on the ethics of Financial Services companies, therefore regulation remains a cornerstone. • Customers are unlikely to be accepting of an AI denying claims. • The fear of job losses throughout multiple industries is a genuine concern Further Thoughts – Ethics and The Machine The discussion on ethics could have taken may routes, a few other areas to consider on this topic might be: • The Virtual Me - Who owns the Virtual you? Company ownership if employee leaves? Or After death? If your knowledge is stored in a Neural Network, what does that mean? • Surveillance - fraud detection, suicide watch, compliance breach are all possible but we don’t / can’t do this at the moment because of our ethics. What happens when a country doesn’t apply the same principles? • Impact on Taxation of earnings if automations begin to cap the upper earnings, changing the nature of the economy and delivery of public services • Increasing use of AI for Elder Care, or use of Humanitarian Drones • Automated Armed Robots • UK Government indicating the decision not to regulate AI
  10. 10. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 10 | w w w . i n s t e c h . c l u b Topic 3 – Tiny Data Collection Forms vs GDPR The final topic was perhaps the most challenging for our participants, discussions focused on the current situation and challenges rarely moving into opportunities, solutions or potential action. The conversation began with a sharing of the background to data analysis, a discipline that has seen a lot of change over the last 3 years. Historically data required simplification to analyse in any realistic timeframe, whereas now it is possible to analyse greater volumes of data in real- time. While some felt that there was a lot of scaremongering by legal and compliance teams, creating unnecessary panic about GDPR within organisations, others felt that GDPR was actually great news for consumers as it provided them with necessary protection. A more challenging concern was that the introduction of GDPR will inhibit opportunities for innovation. “GDPR will inhibit innovation” Relatively few discussions focused on the “tiny data collection forms” beyond the broad agreement that customers would prefer a lower data collection burden. While a small form of data entry using publicly available data is possible – generally as a result of people openly sharing data through social media – there is a feeling that GDPR will also make this more difficult to achieve in the future. “personalised services require” more data Millennials are considered to be distrustful of companies, yet are also demanding more personalised services, which in turn requires more data to achieve. The challenges facing insurance companies broadly breaks down into what do you store, what do you hold on to, and being clear about what value the data is giving you. Questions on the practicalities of GDPR regularly raised to the surface, such as whether GDPR would be enforceable? What can we do with historical data? What happens to marketing data for which explicit consent has not been given? Or what is necessary to make legacy systems compliant? Figure 7 - Desert and Discussion in action
  11. 11. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 11 | w w w . i n s t e c h . c l u b The topic of data quality also resurfaced when considering the use of IOT data in relation to GDPR; IOT can be ambiguous as to which person the data has been collected for. “IOT can be ambiguous” In conclusion the final topic was perhaps more interesting from the view of how participants addressed the topic rather than the specifics of the topic being discussed. Participants openly stated that their energy for GDRP discussion was lacking, a scenario that is likely reflected in many organisations across the UK who are struggling forward with GDPR. It also generated the most polarising views, which cited a doomsday scenario at one extreme, through to comparisons with Y2K (a lot of fuss about nothing) at the other. In bringing the final topic to a close, the advisory board concluded: • Customers prefer lower data collection burden • There is a lack of education across insuretech on the real impact of GDPR • More data is needed to provide personalised services for customers Further Thoughts – Tiny Data Collection Forms vs GDPR The discussion on GDPR could have taken may routes, a few other areas to consider on this topic might be: • Surveillance has a need for data that is a challenge for GDPR (Fraud Detection, Suicide watch, compliance Breach) • People are ignorant, they don't care that they give data away for free, regulation and education is therefore needed. • We are not obliged to use social media (Facebook, LinkedIn, etc) yet we have signed up to give everything away for free, we don't read the T&C! • Could you develop a proposition that uses deep data about customers to understand their needs and deploying e-health technologies to build relationships and guide customers’ behaviour?
  12. 12. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 12 | w w w . i n s t e c h . c l u b Feedback and Lessons Learned • Traditionally discussions tend to focus towards insight and problems, the new approach generated more information on solutions and actions. • The shared Trello Board allowed discussion points to be shared between tables and participants to reflect on key points. • Participants were reallocated to different seating arrangements for each topic / dinner course, an approach generally frowned upon, but near unanimously agreed as an effective approach for this format. • Three topics were selected for the first event, our view is fewer topics would provide increased opportunity for greater depth. • Information that may have been missed during the event (it took place at the other table for example) is available for review and sharing with members who were unable to attend. • The output is a resource for sharing more widely, to customers or internal staff, promoting insights gathered. • Additional research, value-added insights or promotional materials can also be incorporated into the final report. Contact Wzard Innovation for more information Wzard Innovation combines industry expertise in facilitating interactive problem-solving workshops with informal discussion formats such as dinner events or networking. Our first experiment for the InsTech Advisory Board Dinner was deemed a terrific success, facilitating deeper discussion and documented insights for sharing with a wider audience. If you would like to find out more about this innovative new format then email info@wzard.co.uk or contact us directly, details on the following page. Figure 8- Capturing Feedback
  13. 13. INSTECH ADVISORY BOARD DINNER DISCUSSION PAPER 13 | w w w . i n s t e c h . c l u b Hosted By: Katia Wyatt Co-Founder & Director katia.wyatt@club2020.co.uk 07847617977 Gabi Cogorno Co-Founder & Director gabi.cogorno@club2020.co.uk 078135 13701 Sponsored By: Simon Laird Partner simon.laird@rpc.co.uk Mark Crichard Partner mark.crichard@rpc.co.uk James Phythian-Adams Legal Director James.Phythian- Adams@rpc.co.uk Prepared By: Rod Willmott CEO, Chief Wzard rod@wzard.co.uk 07450 273103 @rwbdjr Rob King COO, Chief Operating Wzard rob.king@wzard.co.uk 07711 250545 @Rob_King_ Thank You Thank you to Club2020 and the InsTech Advisory Board for their support, participation and insight in the production of this paper. Next Event www.instech.club, December 11th, 2017, Hilton Canary Wharf, London Innovation, Future Technologies & AI for Insurance

This whitepaper was produced as part of the "Innovation Cafe," a facilitated dinner discussion. The topics discussed in this paper are: (1) Real Time Data and Insurance; (2) Ethics and the Machine; (3) Tiny Data Collection Forms vs GDPR

Views

Total views

61

On Slideshare

0

From embeds

0

Number of embeds

1

Actions

Downloads

1

Shares

0

Comments

0

Likes

0

×