The Mobile Strategy: Insurance at your fingertips
The insurance industry has so far been known for its legacy applications. The most successful players in the industry are traditionalists, rather than technologists. The mobile revolution has necessitated a radical shift in the way the industry has functioned so far. According to an Apteligent report, by 2020, the world will have 9.2 billion active mobile subscriptions. Needless to say, mobile phones and the Internet are transforming the world and revolutionising business processes across industries. Despite the insurance industry’s traditional way of operating, research shows that 60 percent of consumers’ primary way of accessing policy information is through their insurer’s website. This has precipitated the need for insurance companies to engage with consumers on mobile devices.
Mobile interaction between insurers and consumers is not just beneficial for customers, it offers insurance providers the opportunity to reduce costs as well as devise new streams for revenue growth. Companies need to make the most of this opportunity by offering robust apps that provide answers to all the questions by consumers.
There are three major reasons why insurance companies should undertake digital transformation activities to stay ahead of the curve, when the natural shift to mobile inevitably happens. They are:
Screens are becoming an increasingly popular means of access policy information
Like mentioned above, research shows that 60 percent of modern customers now look up information about policy online, on the insurers website. The number of people who still prefer to go the traditional route and call their agent is rapidly diminishing. A small, but steadily increasing number use their insurer’s app. Every screen usage trend suggests that mobile devices will soon eclipse desktops. While digital consumers currently access the internet using both desktops and mobile platforms, a mobile-first and mobile-only world is inevitable. Mobile’s pervasiveness will soon create a fundamental shift in the insurance market. Access to mobile insurance will be the key differentiator and a great source of competitive advantage between large traditional players and the far smaller digital insurance start-ups that are cropping up everywhere.
Customers use mobiles to make simple tasks simpler
Mobiles have transformed our world and the way we interact with people and the services we enlist. Mobiles make life more convenient and simplify tasks, and society values convenience and anything that helps us save time. Mobile apps can greatly simplify straightforward tasks such as reviewing and renewing the policy, requesting quotes for new policies, etc. With more sophisticated apps, insurers can also make it possible for consumers to perform more complicated tasks such as buying coverage, submitting claims, locating service providers, etc. without the delay caused by human intervention. The more the number of functionalities that insurers provide for their customers via apps, the greater their chances of converting leads into business, while increasing satisfaction among existing customers.
Mobile capability is a defining differentiating factor for customers
Mobile matters, for both digital natives, as well as connected digital immigrants. As more and more consumers gravitate towards the Internet and apps to look for information and make purchase decisions, it is only natural that they opt for services that provide superior and smooth mobile capabilities. There is a huge gap between what consumers expect insurance providers to provide through their apps, and what insurers are effectively providing. Slow performance, legacy and outdated systems that lead to frequent crashes, and the lack of desired functionalities are all matters of concern and frustration for prospective and existing customers. Given that mobile will soon be the primary platform of communication between insurers and consumers, including third parties such as brokers and agents, now more than ever, consumers are prepared to embrace companies that offer sophisticated services on mobile, bridging the information gap that existed in the traditional model and shifting the power from insurers to consumers.
To know more drop a mail at firstname.lastname@example.org