A Software Developer’s Perspective on Blockchain, B3i and Insurance

Original article posted on B3i’s website.

As part of a series of interviews with employees and members of B3i, Ken Marke spoke to Philipp Tölle, Expert Application Engineer, who is a Core Developer & Co-Architect at B3i. During this conversation, Philipp, who holds a master’s degree in computer science, shared his personal views on what differentiates B3i from other initiatives and how Blockchain implementation in the Insurance industry will have a social impact especially in emerging markets.

Quite often we get caught up by industry jargon, flattered by statistics and emboldened by proclamations that technology will change the Insurance industry – but we forget that this change is driven by people – people such as Philipp. This interview provides an insight into the thoughts, motivations and beliefs of one of the many passionate, enterprising and committed individuals involved in projects at B3i.

The discovery of Blockchain by Philipp

Philipp first came across Blockchain in 2012 whilst he was still studying. This was a time of rapid development in Bitcoin mining – the movement to ASIC systems had started . Given his computer science background, he was interested in the technology perspective. However, the realisation that Bitcoin mining was not feasible using his personal machine put the matter to rest until about three years later where Blockchain popped up during an internal meeting at Swiss Re. This led to him becoming part of the Swiss Re Centre for Competence in 2015.

What makes Blockchain so interesting for Philipp?

Having first approached Blockchain from a technology perspective, he was fascinated by the creativity triggered by Blockchain. He found it extremely interesting how a theoretical topic such as cryptography (which requires a thorough study of computer science to appreciate fully) was getting so much attention in the public domain.

Philipp finds it remarkable how certain people can explain fundamental concepts of cryptography and Blockchain to a non-technical audience – the accessibility of such knowledge to the public fascinates him.

What sets B3i apart?

“The technical voice was heard and always present. And this, I think, gave B3i a big advantage in comparison to other initiatives.”

Philipp believed that a technical topic such as Blockchain required attention from IT teams of the member companies of B3i. He highlighted the fact that during the early days of B3i, with the support of colleagues from other firms, he was able to ensure that the technical voice was always present and heard during meetings.

He asserts that the combined IT expertise of the member companies of B3i sets it apart from other initiatives.

The hype surrounding Blockchain

Speaking from a technical perspective, Philipp stated that Blockchain is a new technology and that it requires significant investment by firms prior to being able to extract benefit from the cost efficiencies. Referring to the Blockchain hype in the Insurance industry, he shared his personal view that in many projects don’t require the unique properties of Blockchain – audit trial, immutability and consensus as per pre-defined rules.

B3i and Blockchain – driving cost efficiency and leading to social impact

“My point-of-view is (that traditional Insurance) is extremely inefficient, very paper-based and not truly digitalized end-to-end.”

According to Philipp, B3i can solve the core problem of data ownership in the Insurance industry. He explains that the decentralised system built by B3i means that data ownership is retained by companies/customers. Blockchain ensures that there is a single version of the data. Since B3i builds products on Corda Enterprise (which is a permissioned Blockchain protocol) – information is shared between parties on only a “need to know basis” and parties know that the information visible to them is precisely the information visible to other parties involved in a transaction.

“This (referring to B3i and the use of Blockchain) will make the process of Re-Insurance and Insurance more transparent, more secure, more cost-efficient and therefore will make Insurance more affordable.”

Concluding remarks

“If you have (Insurance) coverage in your life, you tend to take a bit more risk and a bit more risk already ensures that there is prosperity for your family, for your village and for your country.”

Philipp believes that Blockchain has huge potential to deliver cost efficiencies, but he is very interested in the social impact of Blockchain. He hopes B3i and Blockchain can make Insurance more affordable for emerging markets. The highlight of working at B3i for him has been the interaction with a diverse set of people from various companies.

Philipp looks forward to his vacation which will take him to explore the Amazon rainforest – a well-deserved break

The key message to take home is the human aspect of Insurance. Innovation in Insurance is driven by people like Philipp, Insurance is meant for the benefit of customers and a significant part of innovation in Insurance today is aimed at benefiting the ultimate consumer – people are at the center of this industry today and for as long as it remains so, the human aspect will be important.

Can New Digital-Only Financial Providers Compete When It Comes To Trust?

Original article posted on AURA Insight website.

By Georgina Clarke, IFF Research

Trust within the financial services sector is defined in different ways by different customers, with the factors influencing trust in financial providers – both positively and negatively – incredibly varied. When looking at personal finances, trust plays a vital role in customers’ consideration of prospective providers and their loyalty to a provider in the longer term. While the financial services sector is notably ‘sticky’ in terms of customer retention (with customers often not changing providers due to a combination of long-term loyalty and perceived hassle), challenger brands in the fintech space are changing the financial experience landscape and, through this, starting to redefine the basis of trust.

Recent research with IFF’s Fintech Beacon community has sought to understand how the digital only financial services providers are competing with the established providers when it comes to trust.

There are two important factors that influence trust in the financial services sector, which impact how consumers feel about providers.

1)    Reputation and history

Many consumers give trust automatically to established banks who have a longstanding history and brand heritage. However, trust has been impacted by scandals and data breaches which have a significant impact on their reputation.

New digital players are not automatically trusted, and they will have to build this over time by demonstrating their longevity. It will take time to build trust to the level that established players have, but the trust that consumers have in these digital providers is continually growing.

2)     Physical presence and accessibility

Traditional banks that have maintained physical branches generate trust as there is somewhere to go and actually speak to a person if things go wrong, rather than relying on remote support. Although branch use may be limited among some consumer segments, having the potential for face-to-face interaction provides reassurance.

However, the new digital players gain trust from offering a 24-hour service, available through different channels, as well as enabling customers to obtain personal support, quickly and easily, without the need to navigate various options.

Digital-only providers are becoming trusted partners

Overall, digital providers stand out in building customer trust through their position as being a ‘partner’ and ‘helping hand’ in improving their financial situations. This is demonstrated by providing products and features that exceed customer expectations and support them in their financial goals, whilst also being honest and transparent with customers and communicating with them clear and understandable language. Features like spend analytics and recommendations, no foreign transaction fees, easier transfers to family and friends, real-time updates and notifications and savvier savings tools are all commonly referenced features that make digital banking customers feel their bank is helping them succeed. Furthermore, in customers’ limited experience, there have been few negative experiences with these new providers, not to mention limited technical issues, data breaches or scandals that might be cause for concerns about security or trustworthiness.

The only barrier to trust is the new, riskier nature of these businesses (including the limited ‘paper trail’) and some concerns about what might happen if these young businesses do fail (most, however, recognise that their money is insured to a certain amount).

Ultimately, while most customers recognise that this trust is new and limited, their experience to date creates a solid foundation to continue building trust through further, positive experience of their providers as financial partners.

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IFF Research | Website | LinkedIn

IFF Research is one of the research industry’s leading players. With over 50 years of experience, we have a proven track record of delivering high-quality strategic research for a wide range of organisations, across the public and private sectors.

Author

Georgina Clarke, Director, IFF Research

Georgina has worked in the research industry for 20 years, joining IFF Research in 2017 as a Director. Georgina specialises in financial services research, working with many of the leading banks, insurers, pension companies, investment providers and asset managers. She is passionate about establishing close client relationships and helping clients embed research findings to ensure they lead to actions within their business.

Content: Does Virtual Reality have the Power to Amplify

Original article posted on AURA’s Website.

At AURA’s ‘Brains, Waves, and Automated Machines’ Seminar, Ipsos MORI presented their work with the Royal Shakespeare Company. Dr Pippa Bailey (Ipsos MORI) provides further insights into the project in this article.

Watch the accompanying research video here.

Does Virtual Reality have the Power to Amplify our Understanding of Attitudes, Behaviours and Motivations in Research? 

Shakespeare has the Answer

We consider virtual reality (VR) a recent phenomenon, but the representation of real life through other mediums, such as art and drama, has been discussed since Plato and Aristotle’s time.  So, the opportunity to compare the emotional engagement of three very different experiences of the same Shakespeare play provided not only useful insights for The Royal Shakespeare Company (RSC) in re-imagining what theatre could look like in the future, but also invaluable learnings for us as researchers. And what better play to choose than Titus Andronicus – Shakespeare’s most gory revenge tragedy?

Random Exposure

In this study, participants were recruited and randomly allocated to one of three conditions: 1) theatre viewing, 2) live to cinema viewing and 3) 360 VR immersive viewing.  All were fitted with a heart rate monitor for the performance, which provided a biometric measure of emotional engagement.  Immediately after, a short exit interview was completed which included spontaneous video feedback and then a few explicit and implicit questions.  Text and voice analytics were used to understand spontaneous reactions and emotional sentiment.

One of the most notable learnings was how well participants tolerated the 360 VR video experience.  Contrary to expectations, and given that they were told that they could leave at any point, all participants in this cell watched the full performance of just over three hours (including an interval) while wearing the HTC Vive headsets (participants ranged from 20 to 80 years). Two-thirds stated that they would consider VR as a way to experience theatre in the future.

Heartrate data analysis showed that the number of times it peaked (more than two standard deviations) above the individual average was comparable across all three test cells. Verbatim feedback analysis (captured post-performance) demonstrated, however, that overall, the VR experience was more closely aligned to live theatre than cinema was to theatre.

In VR, there were more moments when participants felt that they were at the theatre (9 in every 10) than the cinema experience (two-thirds).  The duration of this sensation was also longer for VR than cinema.  Verbatim comment analysis revealed that theatre and VR were perceived as more shocking and gripping, suggesting the experience was perhaps more visceral than in cinema.  We hypothesised that this was because people are more desensitised to violence in a cinema setting.

This study (in which Gorilla in the Room provided VR expertise and support) has demonstrated the realism that VR can bring and the potential it has, not only for the entertainment industry as a potential media channel but also for the research industry to immerse people in what feel like real-life situations, the better to observe, understand intuitive reactions and predict behaviour.

Take VR: it enables us to test at a quantitative level environments and elements within those environments which don’t currently exist in the real world, be this airport terminals, train stations, banks or passport control systems. Layout, signage and important points of interaction can be quickly evaluated, optimised and re-evaluated with significant time and cost savings before any construction work commences.

Potential FMCG applications are just as valuable: testing and evaluating store layout and flow; optimising shelf fixtures; maximising impact of point-of-sale and promotional material and being able quickly to test new packaging design and concepts in a competitive context.  VR also potentially has a central role in testing out-of-home advertising by superimposing campaigns on to existing walk through videos of real street scenes.

If we layer on top of this the ability to incorporate biometrics such as eye-tracking, galvanic skin response or heart rate monitoring, VR becomes even more invaluable.  We can understand where people look, what they see, how long they spend looking at each area and how they respond – whether they notice promotions or signage and how this may impact a choice decision.

VR is, however, not without barriers, and the investment in time and money necessary to create high quality environments from scratch is often cited as a major challenge.  Hardware to deliver these will need to be budgeted for, and beyond that, a sum set aside to recruit participants who are willing to travel to a central location for the testing.

There are, though, more accessible solutions which can be used at a quantitative level without significant investment. These include using 360 VR video to take people through an experience/environment (rather than fully interactive VR environments) and the delivery of these via a mobile inserted into ‘Google Cardboard’, sent to participants’ homes for use.  The level of investment, however, is all related to the experience’s quality and reality.

The RSC study has demonstrated VR’s power to truly transport people into environments such that they feel they are ‘there’.  Technology will take us further, beyond optimising the visual and auditory.  The sense of smell is already being incorporated by some into VR study environments, but the final frontier for fully immersive reality will be mastering touch/haptics.  This will be the most difficult human sense to trick due to the complexity and multi-faceted nature of how we perceive texture, weight and vibration, but great strides are already being made.

Virtual to Daily Reality

With other technological developments such as artificial intelligence (AI) we will be able to test sensitive issues, such as the interaction between health practitioner and their patients, by incorporating intelligent bot interviewing. The blurring of VR and augmented reality (AR) to create mixed reality experiences where real and virtual worlds start to blend is not so far off. Finally, the development of VR and AR for mobile and the introduction of lightweight glasses with head-up display will allow for widespread adoption and usage – so virtual may become more of a daily reality!

How to Get Out on the Road with Stakeholders

Original article posted on AURA’s website.

At a recent AURA seminar, members welcomed Crowd DNA to dicuss their work to explore the art of teen attraction for clients Axe/ Lynx.

In this article, Andy Crysell of Crowd DNA shares with us some more insights sets out how to get out on the road with stakeholder teams. Be sure to check out the full presentation in the members Resources section.

How we get out on-the-road with stakeholder teams, immersing them in the lives and culture of people.

Sometimes in our work it’s important to remove the safety net. To fly, just a little, by the seat of our pants. Actually, what we really mean is it’s important for our clients to be doing this. To escape the confines of simply attending the debrief presentation or the viewing facility.

This is about getting brand teams to meet with ‘the public’ and on their turf; in their houses, their shops, their bars and recreation parks. But you’ve got to bring energy and purpose to these occasions – encouraging clients to lean in and to be truly receptive to what’s around them. This involves good design, consummate preparation and a flair for fluid thinking.

We call this Crowd IRL (aka In Real Life) and at Aura’s Brains, Waves, and Automated Machines seminar on July 24, 2018, we presented how we used this approach in six markets as part of our work for Unilever’s Axe brand (also known as Lynx), seeking an authentic way to help client-side stakeholders to gain greater empathy with the target audience and a sense of co-ownership and co-authorship of the project’s findings.

In this post we share i) what we find so exciting about this form of work and ii) the craft that goes in to setting these sessions up to the very best effect (ie, so there’s not really too much flying by the seat of anyone’s pants).

Crowd IRL

We’ve been on an impressive roll running IRL sessions in the last year. This work has taken us to South Korea, China, Argentina, India, South Africa and Indonesia; as well as out and about on Crowd DNA home turf in New York, Amsterdam, Singapore and London.

When set up carefully, there’s something incredibly powerful about this type of work. Rather than listening to, reading about, or watching what we have to say, or peering from behind the glass in a viewing facility, the client is truly getting in there with people and with culture.

The benefits of this might sound obvious, but it’s incredible how often the potential for these sessions is overlooked. You can’t really sleepwalk through them, and that’s key. It requires client teams to lean in. There’s sometimes even a sense of friction to begin with, of people being out of their comfort zone, but that’s a useful ingredient. Played right, this leads to true alertness and receptivity to what’s going on around you.

There’s not really a one-size-fits-all method for this type of work. Sometimes we might just be connecting with ‘regular’ consumers; at others we will include influencers and experts; or base it more around visiting stand-out locations than interacting with pre-recruited participants. They can be all wrapped up in a few hours, or take place over a number of days. So yes, we’re big believers in custom design over off-the-shelf solutions. But nonetheless we thought it worth trying to get down a few notes on what we think are the important factors:

Planning

Planning does make perfect in this field. All participants – the public and client stakeholders alike – need to be given the right level of detail on what will happen and what’s expected of them. Sometimes we’ll produce a project intro video, talking through the plan. We also create profile packs so clients have good background info on the people they’ll be meeting – the more context and anecdotes they have, the easier it will be to start conversations.

We work hard to get the mix of locations just right. You want to be going to the places that the target audience in question really does go to and/or to the cultural hotspots that will change thinking and present powerful new stimulus. This takes meticulous upfront research and attention to detail.

You’ve got to be realistic, too. While there might be ten good spots to head to, if time doesn’t allow for it, don’t do it. There’s no point turning the whole exercise into a needlessly frantic dash about town – and people need reasonable time to share learnings and talk between each interaction. Oh yes, and it’s worth knowing exactly where you’re going – getting lost in Kyoto, Mexico City or Helsinki isn’t a crowd pleaser.

Not too much planning!

So all of this planning is essential, but you also have to leave some gaps in the process. The serendipitous moments along the way are often where the magic happens. If the client wants to check out a different store than the one planned, or has struck up a particularly good conversation that warrants more time, you need to build in scope for such things to happen.

Don’t write a discussion guide – this can hinder the experience of actually meeting people on their own terms. Instead, arm the clients with provocations about the topic of interest as conversation starters. These could be false facts, quotes from previous waves of research etc. This type of stimulus is great if conversation starts to slow down, but, as not too prescriptive in form, also doesn’t limit clients from feeling they have the license to go off-script.

Setting the tone

These projects are about experiencing an environment with all senses truly switched on, not just having a conversation. Tell clients to observe and take note of the spaces they find themselves in, body language, relationships between people, media, music, food, what others in the space are doing.

Encourage clients to be interested, curious, flexible and to have fun. It’s not always going to run perfectly. There will be awkward conversations, silence and even some boredom – but mixed with laughter, fun and great interactions. Let the consumer lead where possible and allow them to be the narrator of their world.

Expertise

If you’re dropping into a distant city with a bunch of clients, looking to immerse them in how people and culture works there, sufficiently deep expertise in the topic matter is vital. This might well come from previous waves of secondary or primary research that you’ve conducted. It can also come from working with on-the-ground contributors – people who can articulate the details of the experience and unlock scenarios that may otherwise be out of reach. For instance, we might work with local lifestyle journalists and bloggers, or even independent tour guides who specialise in showing people an alternative view of a city.

Sharing

Everyone will need a way to gather, disseminate and reach conclusions around the wealth of material they are exposed to. We’ve recently had great success setting up WhatsApp groups in these types of situation. Our client stakeholders get to share images, videos and noted insights as they go in a fluid and low friction fashion. Better still, we can use the channel for logistical purposes, following where everyone is and, for instance, whether it’s time to advise a particular team that they’ve probably downed enough shots in that location and should move on!

We also arm teams with Polaroid cameras in some cases – of course, people can take pics via their phones, but it can be useful to achieve a focus on what’s important by limiting the number of shots available to them. We might give them budgets to buy items as they go – inspiring and surprising material that they can then share and discuss later.

Something ultimately needs capturing out of all of this fine work. Talking over findings, post-day, at dinner, can be the way – though be mindful of burnout. It can often be just as beneficial to share the findings over breakfast, as the start of the next day – people are fresher and it primes everyone for the next set of adventures.

It’s the job of the stakeholders to gather and share ideas. But it’s ours to collate them and author, or co-author, the take-outs. The final record of this type of exercise varies – a blog, film or booklet; a simple Google Docs round-up; a workshop session to feed ideas into the innovation pipeline – but it’s vital that there is an end product.