This presentation explores technology trends and how those impact both consumer behavior and insurance operations. Focus is paid to mobile device adoption, the API economy, the Internet of Things, and Frictionless User Experience.

1. Tech Statistics that Drive
Consumer Behavior.
Phil Reynolds

2. Phil Reynolds
CEO
BriteCore / IWS
Springfield, MO

3. Technology is Moving
Faster Than Ever!

4. Moore’s Law
• Gordon Moore co-founder of Intel
• “Transistor density will double every 2 years”
• 1965 prediction has held true for 50 years

5. h"ps://commons.wikimedia.org/

6. Kurzweil’s Law of Accelerating Returns
“The returns of an evolutionary process increase
exponentially over time.”

7. Kurzweil’s Law of Accelerating Returns
1
2
4
8
16
32
0
5
10
15
20
25
30
35
Gen
1
Gen
2
Gen
3
Gen
4
Gen
5
Gen
6
Liner
Exponen4al

8. Kurzweil’s Law of Accelerating Returns
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Liner
Exponen4al
16,777,216
x
512
x
524,288
x

9. 1969 NASA Apollo Missions
• IBM System/360 Model 75
• $3,500,000
• 200,000 FLOPS
• 64,000 bytes memory
• 43kHz processor

10. 2015 Modern Smartphone
• iPhone 6
• $750
• 115,000,000,000 FLOPS
• 1,000,000,000 bytes memory
• Dual Core 1.38 GHz processor

11. 2015 Modern Smartphone
• 576,000 Times Faster
• 8 Watts Power
• Super Computer, Internet
Access, GPS, Camera,
Communications, Sensors,
etc.

12. Trends in Consumer Behavior
1. Mobile Device Adoption
2. Frictionless User Experience
3. Internet of Things
4. Pay Per Use

13. 1. Mobile Device Adoption

14. Go Mobile
Mobile technology has risen FASTER than
ANY other technology in recorded history.

15. Go Mobile
Mobile device adoption is growing
8 TIMES FASTER
Than internet adoption did in the
1990s and early 2000s.

16. Go Mobile
Smartphones have integrated into our lives faster
than any technology in history. Ownership has grown
by 71.1% year over year.
64% of Americans now own smartphones.

17. Go Mobile
39%
50%
56%
61%
64%
72%
78%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2011 2012 2013 2014 2015 2016 2017
Percentage of Population with Smart Phone
US Smart Phone Adoption
207m

18. Mobile and Remote Access
Tablet ownership is currently exploding as the power of
these devices grows. Ownership has grown by 78.9%
year over year.
40% of adults now own tablets.

19. Go Mobile
11%
29%
40%
43%
48%
54%
60%
0%
10%
20%
30%
40%
50%
60%
70%
2011 2012 2013 2014 2015 2016 2017
Percentage of Population with Tablet
US Tablet Adoption
106m

20. Go Mobile
At 7.5 billion units,
there are more active
mobile devices on Earth
than people.

21. Go Mobile
The average smartphone user
spends 4.7 hours a day
using their mobile device.

22. Go Mobile
of all web traffic now comes
from mobile devices.
33%

23. Go Mobile
of all Google Searches now
originate from a mobile device.
51%

24. Go Mobile
of smartphone users will not recommend a
business with a poorly designed mobile site.
57%

25. Go Mobile
of smartphone users view brands with
mobile apps more favorably.
64%

26. Go Mobile
Of mobile device users make direct
purchases or research purchases
regularly using their mobile device.
90%

27. Go Mobile
Mobile is Big.

28. Go Mobile
“How do I engage mobile?”

29. Go Mobile
1. Responsive Design

30. Responsive Design
• Page layout adapts to the size of the screen.
• Elements remain large and targeted
• Frequently filter unneeded elements
• Bootstrap is a popular framework.

32. Go Mobile
2. App vs Mobile Web

33. Definitions
• Mobile Web – Applications delivered over the internet that
are viewed through a mobile web browser.
• Mobile Apps – Applications downloaded to a mobile
device that install and run natively on the device

34. Mobile Web
(Pro) Distribution – Universal Through Browser
(Pro) Cost – 25% to 50% of Native App Cost
(Con) Features – Limited Access to Device
(Con) Internet – Online Required
(Con) Exposure – Competing for 20% of Users Time

35. Mobile Apps
(Con) Distribution – App Store
(Con) Cost – 200% to 400% of Mobile Web Cost
(Pro) Features – Full Access to Device
(Pro) Internet – Offline Usage with Background Sync
(Pro) Exposure – Competing for 80% of Users Time

36. Which is for you?
• Mobile App – If you want to deliver a rich user experience
and can afford it.
• Mobile Web – If you want to offer mobile access on a
budget.
• The best companies offer BOTH.

37. Go Mobile
3. Target Mobile Moments

38. Mobile Moments
When a user is on the go
and wants to know or accomplish
something in the moment
there is an opportunity to build trust, and loyalty.

39. Example Mobile Moments
Whose Moment? What’s their Motivation? Example
Insured Learn about a product What does it cost to add an ATV
to my insurance policy?
Insured Receive service assistance A tree fell on my house. I need to
file a claim with my insurance
company.
Agent Check on Policy Status Is that policy issued or do I need
to give the insured feedback?
Agent Review Income What was my commission
payment last month?
Staff - Underwriter Efficiency What policies do I need to review
tomorrow?
Staff - Claims Adjuster Serve Customer Better Submit authority override request
in the field.

40. Opportunities
• Build mobile interactions targeted at device capabilities.
• Keep apps simple and focused on user needs.
• Target functionality to create mobile moments for insureds,
agents, and employees.

41. 2. Frictionless User Experience

42. Consumers want interactions
to feel quick and effortless.

43. Frictionless UI
of people expect a web page
to load in 2 seconds or less.
47%

44. Frictionless UI
of people will abandon a page that
takes longer than 3 seconds to load
40%

45. Frictionless UI
of people cited a website or app’s
design as the number one factor in
deciding the credibility of a business
48%

46. Frictionless UI
of online shoppers claim that quick page
loads are important for their loyalty to a site.
52%

47. Frictionless UI
of online consumers are less likely to
return to a site after a bad experience.
88%

48. Frictionless UI

49. Conway’s Law
“Any organization that designs a system will produce a
design whose structure is a copy of the organization's
communication structure.”
-- Melvyn Conway, 1967

50. Conway’s Law

51. Conway’s Law

52. Conway’s Law

53. Conway’s Law

54. User needs come first.
Organizational design is secondary.

55. Frictionless User Experience
User Experience
“How it Works”
• Layout
• Interaction
• Information Architecture
• Wireframing
• Prototyping
• Research
• Testing

57. Mozilla UX Redesign
70% Reduction in Support

58. Frictionless User Experience
User Interface
“How it Looks”
• Typography
• Color
• Form
• Illustration
• Photography
• Detail

60. 7 Principles of Usability
• Simple – Don’t make me think!
• Minimal – What you need, only what you need
• Clean – Margins, white space, typography
• Focused – Primary actions should be big and easy to find
• Familiar – Use and recycle familiar patterns
• Responsive – Offer feedback for every action

63. Great UX Example: UBER

69. 1,000,000 rides per day

70. API Economy

71. API Economy
• API stands for Application Program Interface.
• Allows services to communicate with each other
programmatically.
• Runs over standard and universally accessibly http.

72. API Economy
http://www.myapp.com/v1/getUser?userId=1a554ddf2
{
“id”: “1a554ddf2”,
“firstname”: “Phil”,
“lastname”: “Reynolds”
}

73. API Economy
• Public APIs - 5,000 in mid 2013 to 10,000 in 2015.
• Netflix API receives over 5 billion requests per day
• Over 1,000,000 sites and apps use the Google Maps API.
• Since 2002, Amazon Web Services. $6.2 billion in revenue
and 5x the capacity of next 14 competitors combined.
• 2013 - 1.5 billion API calls. Up from 500 million in 2012.
350 million endpoints globally.

74. API Economy
• APIs are emerging and maturing at an incredible pace.
• There are tremendous business opportunities for
businesses that connect services via API to deliver a
seamless User Experience.

75. APIs you can leverage today
• Location Services
• Property Valuation
• Payment Gateways
• Credit Scoring
• Tax Records
• Protection Class
• VIN and DMV lookups
• Mortgagee Notification
• File Storage
• Telecommunications
• Screen Share and Video
• Help Desk
• Social Media
• Hundreds More……

76. Opportunities
• Offer a great User Experience that addresses customer
needs intuitively.
• Build beautiful, clear User Interfaces.
• Offer an API that allows other services to connect to you.
• Connect APIs to add value to your services.
• Automate and bridge everything you can to offer a
smooth, intuitive experience for insureds, agents, and
employees.

77. 3. Internet of Things

78. Internet of Things
• Cloud of devices connected to the internet
• Sensors everywhere on everything
• Connected devices can access information
• Connected devices can publish information
• Convert information into action

79. Internet of Things
• 2 Billion Embedded Systems – 2012
• 4.9 Billion Embedded Systems – 2015
• 25 Billion Embedded Systems – 2020

80. *Source:
h"ps://www.ncta.com/pla:orm/industry-­‐news/infographic-­‐the-­‐growth-­‐of-­‐the-­‐internet-­‐of-­‐things/

81. Many Companies Built on IoT

82. Categories
• Commercial Buildings
• Energy Management
• Consumer and Home Automation
• Industrial Equipment
• Transportation
• Retail
• Security and Safety
• IT & Networks

83. Smart Devices are coming
to homes and businesses.

84. Nest Thermostat

85. Samsung Smart TV

86. Amazon Dash Button

87. Awair: Air Monitor

88. Netatmo Welcome (Face Recognition)

89. Roost Smart Batteries

90. Nest Cam

91. Insteon Hub Pro (Siri)

92. Kinsa Smart Thermometer

93. Deeper Portable Fish Finder

94. Rachio Home Watering

95. Click & Grow Indoor Planter

96. Withings Blood Pressure Monitor

97. Fitbit Surge Fitness Tracker

98. Tagg Plus Pet Tracker

99. August Door Lock

100. Nest Protect Smoke Alarm

101. PeebleBee Tracker

102. Apple Watch

103. LeakSmart Water Shutoff

104. Wally Moisture Sensor

105. LG Washer / Dryer

106. Samsung Refrigerator

107. Kohler OnCue Generator

108. AgaMatrix Blood Glucose Monitor

109. Withings Body Scale

110. Nuvant ECG

111. Smart Concrete

112. Roomie

113. Microsoft Hololens

114. Amazon Echo Gateway (Alexa)

115. Using APIs to Connect Devices
• IF moisture is detected THEN shutoff water main
• IF motion is detected THEN send message and alarm
• IF Carbon Monoxide detected THEN turn off fireplace
• IF I leave the house THEN lock the doors
• IF temperature drops THEN send message and shutoff
water

116. Opportunities
• Rating Discounts / Surcharges
• Segment Risks Better
• Exclusions Based on Conditions
• Loss Prevention via Sensors
• Correlations in Data
• Develop Entirely New Products and Services

117. 4. Usage Based Pricing
& Membership Culture

118. Usage Based Pricing & Membership Culture
• The Traditional American Dream isn’t the Millennial Dream.
• Ownership, retirement, stability are not valued like they
were by previous generation.
• Community, experiences, sharing, and sustainability are
much more important.
• Value experiences over things.
• Frequently prefer membership over ownership.

119. Entertainment

120. Netflix Subscribers

121. Hulu Plus Subscribers

122. Pandora Users

123. Spotify Users

124. Vacation Rentals

125. Vacation Rentals
• 32% of travelers have stayed in a vacation rental in 2012
• 59% of travelers plan to stay at a vacation rental in 2016
• Online travel climbed from $99 billion in 2010 to $144.7
billion in 2015 fueled by vacation rental growth

126. AirBNB

127. SaaS Software

128. SaaS Market
$43.00
$56.00
$72.00
$87.00
$106.00
$0
$20
$40
$60
$80
$100
$120
2012 2013 2014 2015 2016
Billions
SaaS Revenue By Year
SaaS Softaware Revenue

129. SaaS Software
• Global SaaS revenue projected to be $106b in 2016
• By 2018, 59% of the total computer workloads will be SaaS
workloads, up from 41% in 2013
• SaaS is replacing most traditional software models

130. Transportation

131. Zipcar Members
673,000
777,000
818,000
860,000
930,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2011 2012 2013 2014 2015
Members
SaaS Softaware Revenue

132. Lyft
Lyft passed 100,000 drivers in 2015.

133. Spinlister
Spinlister anticipates 1,000,000
bike listings by end of 2015.

134. Uber
• Over 8,000,000 users
• 1,000,000 rides a day
• 160,000 Drivers
• 290 Cities

135. IT Infrastructure

136. IaaS Statistics
• 93 percent of organizations are running applications that
reside within an infrastructure-as-a-service network.
• 82 percent of enterprises have a hybrid cloud strategy, up
from 74 percent in 2014.
• 88 percent of organizations are using public cloud while 63
percent use private cloud.
• 22 percent of organizations run more than 1000 VMs in
private cloud.

137. Microsoft Azure
• $15B spent on Cloud infrastructure
• 1,000 new Azure customers per day
• 400B authentications on Azure AD
• 10 Trillion objects stored on Azure
• 1 Million servers in Data Centers
• 50% of Fortune 500 Companies use Azure

138. Amazon Web Services
• AWS adds enough new server capacity daily to support all
of Amazon’s global infrastructure n 2004. ($7b revenue)
• AWS offers 5x the compute capacity of the other 14 cloud
providers combined.
• AWS revenue is now $6b a year. More than the next 4
providers combined.
• AWS 5 million servers spread across 87 data centers.

139. Auto Insurance Telematics
Snapshot
Drivewise
In-Drive
Onboard Advisor

140. h"p://dupress.com/ar>cles/telema>cs-­‐in-­‐auto-­‐insurance/

141. h"p://dupress.com/ar>cles/telema>cs-­‐in-­‐auto-­‐insurance/

142. Telematics Statistics
• Telematics study at ISO reveals the riskiest 20% of
operators’ claim costs were 10x higher least risky 20%.
• 36% of auto insurance carriers expected to utilize
telematics by 2020.

143. Pay Per Mile

144. Opportunities
• Point of Sale at the Moment of Decision (Mobile Moment!)
• Charge Per Mile, Day, Rental Hour, etc.
• Use Connected Devices to Measure and Track
• Adversely Select Against Competitors Using Generic Data
Models
• Offer Entirely New Products

145. Recap
1. Engage mobile
2. Offer well-designed user experiences that connect
services via API
3. Build infrastructure to consume and model the data
streaming in from embedded devices
4. Connect all the pieces to offer true experience-based
products and services.

146. Questions?
phil@britecore.com