Tag Archives: crowdsource

The Next Frontier for Connected Cars

In 2006, UCLA Professor of Urban Planning Donald Shoup compiled the results of 16 surveys carried out between 1927 and 2001 on the time spent looking for a parking space. He reported that the average time spent looking for on-street parking was approximately eight minutes – a figure that has remained relatively unchanged since the 1930s.

This research also demonstrated that, on average, one vehicle in three in traffic is actually searching for somewhere to park. This figure has been confirmed more recently by a study from the San Francisco City Council, which concluded that an estimated one-third of weekday traffic was because of drivers looking for a parking space.

While solving the problem of road congestion via accurate traffic information has been looked at for decades – the RDS TMC protocol was invented in 1988 – and has already reached a good level of sophistication and accuracy, solving the parking problem via connected services is quite a recent topic and is still very much a work in progress.

As a matter of fact, most pure players in this field have been founded quite recently: as an example, JustPark in 2006; Parkopedia, ParkMe, Worldsensing and Anagog in 2009; and Parknav in 2011. The only companies to have emerged earlier are the parking payment companies, PayByPhone and Parkmobile, in 2000 and Pango in 2005.

On-Street and Off-Street

Parking essentially divides in two markets with two very different problems to solve: off-street and on-street. Connected services taking care of off-street parking are now quite advanced. In the three steps of information, booking and payment, the first is largely available (even if real-time data remains partial), but booking and advanced payment are still works in progress. Very few cars on the road today – or navigation apps – are able to find, book and pay seamlessly for a parking space in a garage.

The on-street parking problem is, by nature, more difficult to solve because detecting free parking bays in real time, at scale is complex and requires many sources of information. There are very different approaches to create this data.

Leveraging Traffic Probe Data for Parking

One is to make sense of the existing probe data currently used for real-time traffic. For example, Garmin is using this data to calculate the inflow and outflow of cars for each road segment in large cities and estimate availability (read here). The company has partnered with Parkopedia to include off-street parking information in their data model.

The GPS company launched this service in their mobile app during the third quarter in six German cities and is now adding cities in more countries: London, Amsterdam, Vienna and a few others coming in the U.S.

graph1

Inertial Data From Smartphones

Detecting parking and “unparking” events through inertial sensor data from drivers’ smartphones is another approach used by Anagog, which built a software development kit now embedded in several million apps (watch here). Through a signal processing algorithm, the company detects out of gyroscope, accelerometer and location data (GPS, etc.) parking events that are fed to a big data cloud that is now nearing 1 billion historical parking events.

Data From Car Sensors

Car makers such as Volkswagen (read here) or General Motors are also looking at producing data using car sensors.

In the case of Volkswagen, a pilot launched by the company uses the existing ultrasonic proximity sensors (used for parking) to assess the availability of free parking spaces on the side of the road when the car drives along a street. The data is uploaded in real-time and matched against map data to eliminate false positive (parking space for disabled people, etc.).

Parking Meters

Using data from on-street parking meters is another opportunity to get real-time, on-street parking information. Because a significant number of these meters are connected to the cloud, it is possible to build predictive data based on historical trends. Parkeon, a worldwide leader in parking meters, is among the companies enabling that opportunity and rendering this data through a mobile app, Path To Park (read more here), which is now available throughout France and in a number of cities in the U.S. and Germany.

Street-Based Sensor Infrastructures

Lastly, companies such as Worldsensing are placing sensors on each parking bay in the street, which obviously provides the most accurate data, but at a cost. Worldsensing, based in Barcelona, just closed a series B round of funding (for an undisclosed amount). Its largest deployment to date was in Moscow, where the company covered 13,000 spots. The next stage of the deployment will include more than 50,000 sensors.

Image processing is also a technology that could be used to sense free parking bays in streets. Data from fixed CCTV (used for security or traffic monitoring), smartphone apps, connected dash cams or even cars could be used for that purpose.

Obviously, the best information will come from the aggregation of these data streams (historical and real-time). Inrix, which announced in June that it will supply on-street parking data to BMW, combines data from cities, mobile payment companies, real-time parking data, connected car-sharing services and Inrix’s database of real-time vehicle GPS data (read here).

Parknav, a start-up based in the U.S. is also using a very diverse set of data (car-sharing, telecom, fleet, crowd-sourcing), including POI data (bars, schools, etc.) to infer probabilities about parking availability.

Accurate information about free on-street parking bays is a complex matter that will take many more years to solve, but the opportunities are huge for the whole car industry and beyond. The first opportunity is the time saved for drivers and the alleviation of stress and frustration. Once this first opportunity will be realized for drivers, its overall social impact will be big: less traffic, less pollution, less money spent on fuel.

Unused Parking Inventory

The last market opportunity in smart parking is to further eliminate barriers between the offer and the demand, between people circling in streets and empty parking bays, in enabling yield management of underused private parking inventory.

Residential buildings, companies, hotels, schools, hospital or churches have parking spaces that are empty or partially used during workdays, nights and weekends, vacations, etc. Companies like JustPark (UK) or Zenpark (France) are targeting this segment using connected technologies to unlock the value of this inventory and grow the total parking spots available.

On Jan. 28 in Brussels, the ConnecteDriver conference, in partnership with consulting firm Inov360, will gather the brightest minds and the most innovative companies to discuss the fascinating topic of smart parking:

– Hans-Hendrick Puvogel, COO at Parkopedia
– Anthony Eskinazi, head of product and co-founder, JustPark
– William Rosenfeld, CEO, ZenPark
– Bertrand Barthelemy, president of Parkeon
– Ruth Portas, sales manager, Worldsensing
– Ofer Tziperman, CEO, Anagog
– Martin Treiblmayr, product manager, Garmin
– Vincent Pilloy, co-founder and CEO, Inov360
– Parknow (speaker name to be confirmed)

How to Stir Dialogue on Cyber Security

While I continue another implementation of my Security Enterprise Risk Management Program (SERMP), I am also continuing to explore the program’s flexibility, to help my colleagues in the information technology security field explain to others in the organization the level of risk they face and the progress being made in managing it. The SERMP tool and process can adapt to multiple frameworks, so I asked my colleague Steve Zalewski, a chief security architect, if he would share his thoughts on alternative frameworks that he might “drop” into the SERMP.

Steve:

The concept of SERMP is well grounded in practical experience, as you outlined in your previous article. It creates a great tool to start the dialogue between the two risk management functions: the established business risk team and the nascent IT cyber security risk function. You have accurately represented ISO 27000 with the 12 security domains outlined as a starting point to bring the teams to the table, providing a meaningful set of definitions to the IT security domains.

As these SERMP teams gain momentum and maturity, there are alternative security frameworks available that can provide additional perspectives for the business discussion. This will improve our outcomes against the ultimate goal of a balanced analysis of total risk based on the key business processes and business continuity plans.

Let me explain what I mean by this. Based on the “technical” security controls of ISO 27000 being populated into the SERMP tool, you have established a productive dialogue based on security capabilities, which is a bottom-up approach.

Grace:

Using a crowdsourcing approach, we have a diverse team that is gathering information and populating the SERMP tool, which is a “bottom-up approach,” though I would liken it more to a “hunting gathering” approach, as we are collecting data and documentation related to governance, which is “top down.” And, because we are seeking dialogue and information from various groups on the information that is readily available at the time, we are approaching the issue “sideways” too.

This might seem chaotic, but because of the SERMP tool and the disciplined procedure, we are able to make that tradeoff.

The ISO 27000 has been used for both of my implementations thus far, as this framework was chosen by the organization as the standard, but I’m eager to integrate other frameworks into the process.

chart1

Figure 1: Standard Technical Security Controls ISO 27000

Steve:

Compare this with the cyber security framework that was released based on security risk:

chart2

Figure 2: Cyber security Risk Function and Category Unique Identifiers. Source: NIST Framework for Improving Critical Infrastructure Cyber security Version 1.0

As you can see, this aligns to the notional information and decision flows as represented in the diagram below.

chart3

Figure 3: Notional Information and Decision Flows Within an Organization. Source: NIST Framework for Improving Critical Infrastructure Cyber security Version 1.0

Grace:

I can see incorporating the NIST framework by layering in additional categories with the current domains and functions. I would continue to document the strategies for each.

graph

Note: The reporting houses the above information for each domain, plus how the organization is managing the program: Establish, assess, treatment, monitor, review activities and metric tracking for: risk statement, risk impact, key risk indicators (KRIs), risk remediation initiatives, current state (KPI), target state (KRI) and projects.

Steve:

Information security risk frameworks are still maturing as the practice begins to mature. No single security framework is correct, so be flexible based on the maturity of your SERMP implementation, and don’t be afraid to experiment with the newer risk-based frameworks as the team gains confidence in the information security arena.

Grace:

Steve can you outline for me how you see the difference between a security risk assessment (SERMP) and an IT security assessment?

Steve:

A security risk assessment methodology is based on the guidelines found in:

  • ISO/IEC 27001:2005, information technology – security techniques – information security management systems – requirements
  • NIST SP 800-30, risk management guide for information technology systems
  • BS 7799-3:2006, guidelines for information security risk assessment

A risk assessment scope is defined based on the most “critical” or “valuable” business information assets identified in regard to the potential impact to the business if the asset’s confidentiality, integrity or availability was breached. Through data gathering and analysis, including business continuity plans, critical business processes analysis and critical business impact analysis, the assessment questionnaires, interviews and tests are determined. The observed organizational vulnerabilities to the threats, based on existing security controls, are assessed, and a risk analysis is performed.

The completion of a security risk gap analysis is to determine the organization’s compliance with the appropriate regulations, laws and security standards. In addition, a security improvement plan is defined for each risk and “gap” identified, and the implementation of the risk treatment plan is prioritized according to the highest risk scores. The result is to reduce the organization’s business risks to an “acceptable” level.

A security assessment methodology is based on the guidelines found in:

  • NIST SP 800-53, security and privacy controls for federal information systems and organizations

The goal of an IT security assessment (also known as a security audit, security review or network assessment), is to ensure that necessary security controls are integrated into the design and implementation of a project.

A properly completed security assessment should provide documentation outlining any security gaps between a project design and approved corporate security policies.

Management can address identified security gaps in three ways:

  • Management can decide to cancel the project
  • Management can allocate the necessary resources to correct the security gaps
  • Management can accept the risk based on an informed risk/reward analysis

In summary, the characteristics are:

IT Security Assessment

  • Narrower scope and current state focus
  • Start and end date, with a final report
  • Conducted by IT security experts
  • Is a “point in time” assessment

SERMP

  • Broader scope and continuous improvement focus
  • Continuous review
  • Has a periodic re-evaluation date with a “living document” report
  • Conducted by mixture of personnel with varied backgrounds
  • Focus on reducing business process security risk by analyzing the associated security risks

Grace:

Steve, that was very helpful in distinguishing between these two very important, but distinct assessments. For SERMP, we use the high-level findings of the IT security assessment as one of the sources of content, so the IT security assessment is critical to the SERMP process. The SERMP provides a high-level report of the current risk levels and the maturity of the mitigations in place that will drive improvement in the IT security assessment.

As always it is great to collaborate with you, and I encourage other risk professionals to work closely with their information technology colleagues.

About Steve:

steve

Steve Zalewski has spent 10-plus years in the cybersecurity field and is currently the chief security architect at Levi Strauss, responsible for the company’s enterprise security strategy. Before this, Steve was the enterprise security architect at Pacific Gas & Electric, leading the security architecture team responsible for the company’s cybersecurity technical strategy and architecture. Other positions have included security manager at Kaiser Permanente and senior engineering/management positions developing storage networking, data protection solutions and operating systems. He has five patents in data protection and multi-processor operating system design and holds CISSP, CISM and CRISC security certifications.

Can We Disrupt Ourselves?

Brian Duperreault, CEO of Hamilton Insurance Group, delivered these remarks to the recent Global Insurance Forum, held by the International Insurance Society (IIS) in New York City.

It’s a real pleasure to be with you at what is arguably one of the most important annual events in our industry.

I was just 18 years old when the International Insurance Society had its first global meeting in Austin, Texas. I entered the industry in my 20s and joined the IIS in my 30s.

Since then, I’ve benefitted professionally and personally from the knowledge I’ve gained and the friends I’ve made at these annual meetings.

Today, I’m going to talk about an issue that represents a distinct threat to our industry. I might even go so far as to call it an existential threat.

But, like all threats, it also represents a great opportunity.

In it could lie the seeds of a legacy of meaningful change for each of us charged with leading our industry.

So I’m going to address the question: Can we disrupt ourselves?

I’m going to start by saying a few words about Twitter.

Bear with me. I do have a point to make that’s relevant to insurance. Twitter has one billion registered users so far… about one human out of every seven on Earth.

Only 6% of Twitter users are over the age of 45. More than 300 million active users—most of them under 45—join Twitter each month.

Twitter started as a platform for sharing personal moments. It’s morphed into an information delivery system that plays a major role in distributing news, marketing products and affecting the outcome of political and social developments.

And this instant, real-time communication comes with the restriction that you can only use 140 characters to get your message across.

Twitter’s simple idea completely disrupted the way we communicate. I used Twitter as an example of disruption last week when I spoke at the Young Professionals Global Forum in London. I called that speech “Risk in 140 Characters.”

Since then, the CEO of Twitter has stepped down amid charges that the platform isn’t evolving as quickly as it should, and there’s been a lot of soul searching about how this disruptive form of social media can keep current in this ever-changing, ever-evolving age of disruption.

In spite of Twitter’s challenges, I believe the metaphor is a good one. It’s time to select, analyze and price risk, faster and more efficiently – the equivalent of risk in 140 characters.

The young professionals I spoke to last week are all digital natives. As Don Tapscott, who studies the digital economy, says: They’ve been bathed in bits since they were born.

They embrace technology and use it to navigate their world, their relationships and their work swiftly and creatively.

These digital natives are mobile, wireless and connected with their peers all over the globe.

Meanwhile, in the other corner, I—and most of my friends here in this room—are digital immigrants. We’ve had to make a deliberate and conscious choice to adapt to digital ways of doing what we used to do on paper, over the telephone, or through other physical or, at best, analog, means.

Even though it was our generation who invented the Internet, many of us have the feeling of being strangers in a strange land. Using search engines and apps to navigate life and work doesn’t come naturally to us.

We digital immigrants tend to shun social media or dabble around the edges, still thinking Facebook, Twitter, SnapChat and Instagram are trendy chat rooms where younger people tell everybody what they’re up to a thousand times a day.

But the truth is that social media, which erupted onto the scene as a means of personal contact, has quickly morphed into a powerful engine of collaboration with profound ramifications for business development.

Digital natives know that. And because they know it, and use that knowledge to great effect, they are leaping ahead of the digital immigrants in our generation.

There’s a term for this: digital lapping. And this lapping of one generation by another is the basis for the disruption that’s blowing apart traditional business models. For digital natives, disruption is the new normal.

You know what I’m talking about. How many music stores saw iTunes coming? How many taxi dispatchers saw Uber coming? How many hotel chains saw Airbnb coming?

How many Blackberry execs even saw the iPhone coming? Well, maybe they saw the iPhone coming, but it’s an understatement to say their reaction was too little, too late.

Pick any industry, and you can see the pattern emerging.

The automotive industry is a telling example. Sergio Marchionne, CEO of Fiat Chrysler, recently said he’s “more determined than ever to pursue industry consolidation lest technology disrupters beat the auto industry at its own game.” Marchionne’s warning came after a meeting at Google and Tesla, and after spending almost an hour in a driverless car.

“The agenda needs to be moved,” he said, “or all these technology disrupters will come in and make our life incredibly uncomfortable.”

Clearly, all industries are facing massive disruptions because of technology. With new models of service delivery, new categories of products and restructured value chains, society and the customer expect far more than traditional businesses can offer.

These expectations represent a potentially bleak scenario for the insurance industry, because in many respects we are way behind the curve as far as technology is concerned.

And we are groping in the dark for an effective solution to attract digital natives to the industry.

Digital natives are the much-discussed, much-researched Millennials.

Born in the eighties and nineties, they’re the offspring of the Baby Boomers. They’re sometimes known as Echo Boomers or the App Generation.

Millennials are the most diverse generation we’ve ever had. In the US, 35% are non-white, and researchers who study generational differences say they are the most tolerant generation yet, believing everyone should be part of the community.

We’ve been studying Millennials for quite a while, so we know a lot about them:

  • They want to be team players.
  • They want their careers to have purpose.
  • They want to build new things that matter.
  • They use social media to collaborate. They crowd-source everything from fundraising to business capital.
  • They fight for worthy causes by alerting each other to things that distress them.
  • They don’t see much difference between work and leisure, and don’t see the point of rigid work schedules and being tied to an office.
  • They see hierarchy as an obsolete impediment to team progress. They need to get things done, and waiting for permission doesn’t strike them as sensible.

Now, does that list describe how the typical insurance company operates? I don’t think so.That’s a red flag that we need to pay attention to. Consider this:

  • Almost half of insurance professionals in the U.S. are over the age of 45.
  • 25% of all the people working in our industry will be eligible to retire in just three years.
  • That means that, in just five years, there will be 400,000 open positions in the U.S. alone.

Five years ago, Accenture warned that it’s hard to attract Millennials to a career in insurance. Accenture noted that “the industry’s apprentice structure—with its long learning curve and slow promotions—in no way suits a Millennial’s expectation of getting rapid feedback, or working in a flat organization that offers dynamic career development.” Since then, more alarm bells have been rung.

Recently, a report found that only 5% of high school and college graduates thought a career in insurance was worth looking at. When asked why, they said they thought the industry was dull and conservative and doesn’t offer much of a chance to make a difference.

For someone whose whole career has been dedicated to an industry that promises to protect, that really hurts. At the very least, we’ve done a terrible job in helping people to understand the value in what we do.

With hundreds of thousands approaching retirement in an industry that’s dismissed as boring and static, and with disruption looming on the horizon, I believe we’re staring into the jaws of a crisis.

Millennials are not only our future workforce, they’re our future customer base. And our industry, quite simply, is not prepared to attract the numbers we need, with the skills we need, to take charge of the disruption we know is coming.

The men and women in this room have presided over some of the great developments in our industry: Catastrophe modeling, deregulation and globalization all happened on our watch.

We’re not strangers to bold moves. Innovation isn’t a foreign concept.

But collectively we don’t seem to know how to crack this nut: How do we attract hyper-connected, entrepreneurial digital natives into the generally old-school world that so desperately needs them?

I know there are pockets of energy devoted to finding a solution to this problem.

MyPath has been established by the Institutes and affiliates as an industry-led effort to raise awareness of insurance as a career, and to provide information about the industry as well as job opportunities. Hamilton USA, the US operations of Hamilton Insurance Group, is one of the industry partners participating in MyPath.

And there’s Tomorrow’s Talent Challenge, an awareness campaign established by Valen, which provides predictive analytic and modeling capabilities to the industry.

Valen is so concerned about the lack of interest the digital generation is showing in insurance that it created Tomorrow’s Talent Challenge “as a rallying cry for the insurance industry to band together to sell exciting, innovative careers in insurance to Millennials.”

These are laudable efforts – driven by the same sense of urgency that I’m outlining here.

But they’re not enough.

We need a focused, coordinated strategy embraced by some of the major players in our industry.

We need a collaborative commitment like the one announced a few months ago.

In January, as many of you know, a consortium of eight companies from our sector announced a far-reaching initiative to provide insurance to the underserved. My company is proud to be one of the partner companies.

We referred to the new entity as the Microinsurance Venture Incubator – or MVI. Quite a mouthful.

This morning, we announced that the venture has a much better name.

After inviting more than 100,000 employees in our partner companies to help us name the MVI, we chose Blue Marble Microinsurance. This is a great name. It really captures the spirit of our venture. It reminds us of how connected we all are – ever more so in this digital age.

Blue Marble Microinsurance takes a holistic view of our world, planning to extend protection to a broader portion of the population by providing insurance in a socially responsible and sustainable way.

It offers people on the wrong side of the digital divide the stability and potential for growth that insurance makes possible.

Blue Marble Microinsurance’s company partners know that the ability to manage and finance risk is critical to the development of society – any society, but most urgently to those struggling to gain a stable toehold in their pursuit of education, jobs and a prosperous future.

Research and development enabled by Blue Marble Microinsurance will bring affordable insurance products to the developing world.

Technology is at the base of this global project, using innovative apps to connect consumers and products on a micro level – but what drives it is our industry’s collaboration, our sense of purpose and our focus on the future.

What we learn from Blue Marble Microinsurance could truly shift the insurance paradigm.

Yes, it has the potential to reduce the cost of risk analysis and product distribution and delivery. And, through reverse innovation, the application of that knowledge in the developed world could be one of the most enduring legacies of this project.

I have to admit to a huge sense of satisfaction at watching this concept unfold. It was three years ago – almost to the day – that I addressed the annual IIS meeting in Rio and outlined a plan for a coordinated industry effort focused on microinsurance.

At the time, I said that this wasn’t the sort of project that could be tackled by one company. Many had tried, but none had succeeded.

I’m delighted that Joan Lamm-Tennant is now leading the development of Blue Marble Microinsurance.

Joan poured her heart and soul into taking an idea outlined in Rio in 2012 and making it a reality three years later.

This initiative is a shining, innovative example of what happens when we work together to find creative risk solutions.

So if we can find a way to offer coverage to literally billions in developing markets around the world, I know we can figure out how to redefine our work environments, our human resources policies and our recruiting programs in such a way that digital natives will be beating down the doors to join us.

Last week, I challenged the leaders of tomorrow to take charge of their destiny and find ways to attract Millennials into the insurance industry.

Today, I’m inviting you, as today’s leaders, to work together to develop a strategy for our disruption, leveraging the talent and skills of the digital generation.

As I said last week, insurance should be catnip to a Millennial looking for a purpose-driven career.

Let’s invite these digital natives in, make them feel welcome and give them the benefit of our considerable experience and expertise.

Then, let’s step aside and let them lead the way.

We have one of those rare opportunities to leave a lasting, collective legacy – one that ensures the insurance industry stays relevant and innovative and becomes the No. 1 career choice for any young person who wants to make a difference, be part of a team, keep the world working – for generations and generations to come.

Blue Marble Microinsurance is proof that, when we collaborate, exciting things happen. Let’s take a disruptive step to the future – together.