How Mobile Impacts the Insurance Industry in 2016
Over the past couple years we’ve noticed a trend; technological savviness is becoming less and less restricted to a specific age group. Companies across all industries must recognize this and create or adjust their mobile strategies accordingly. But if you’re wondering how mobile impacts the insurance industry in 2016, well, the insurance industry is no exception, particularly since the field is more competitive than ever and people are commonly using technology to shop for the best policy and coverage deals.
Propelics works with many insurance clients. So we can confidently assert that mobile isn’t just changing the way people interact with insurance providers, it’s affecting customer loyalty and expectations. So how should insurance companies address these changes? Which 2016 game-changers will separate the leaders from those struggling to keep up?
The following are key 2016 “game changing” areas insurance companies need to focus on:
- Personalized customer service and support. A funny statistic I ran across recently said that over 70% of mobile users are more apt to forget their wallet than their mobile device. Mobile devices have become an integral, personal part of our lives, helping us through our personal and professional activities each day. In other words we’ve come to expect companies will engage us in a personal manner—offering services, deals or support personalized to me.
Insurance companies that deliver customer data to agents/brokers in a timely fashion will see positive returns. For example, quickly providing access and contextual customer data following an accident claim filed via smartphone enables insurance agents to have more meaningful conversations and tailor services to support the customer. This not only improves customer satisfaction but can also reduce costs associated with processing claims and underwriting, thus increasing overall profitability.
- Big data and analytics. Insurance companies that focus on leveraging big data and mobile to improve customer engagements will leap ahead of the competition. For example, capturing key information via mobile can transform “Jane Smith, married, two kids” into “Jane Smith, 36, fitness enthusiast, frequent traveler, home owner, online shopper, etc.” This information lets the agent or customer service rep provide more relevant offers, resulting in increased customer loyalty and raising new-customer acquisition rates.
- Enterprise content management and workflow technology. For the past 10+ years, insurance companies have been focused on modernizing their legacy systems in order to improve operational efficiencies and employee productivity. However, companies also need to invest in mobilizing enterprise content management and key workflows. Doing so will enable agents and customer service personnel to mine data for valuable insights and patterns for solving customer issues and predicting future behaviors. Digitizing documents streamlines manual paper-intensive claims management activities, provides agents anytime-access to information and optimizes everyday processes for better customer service.
- Seamless customer experiences. More consumers than ever are using smartphones and tablets to get quotes and purchase insurance. A recent EverQuote survey stated mobile consumers are 17% more likely to complete an insurance quote request than a desktop user. As this is only likely to increase as time goes on, companies can no longer ignore traditional and other digital engagement channels. Many companies focus so much on building an app they lose sight of the customer engagement ecosystem. Yes, having a great mobile experience is key but you must also make sure your website, social media and even email all offer a cohesive and consistent user experience. Insurance companies that recognize this and provide a seamless customer experience across all engagement channels will be the winners in new customer acquisition and market share.
- Telematics is on the rise. Connected devices will expand from the P&C industry (e.g. automobiles) to Life & Health insurance markets and offerings. Mobile devices (e.g. wearables) will be used to assess rates by capturing and transmitting policy information back to insurance companies. Examples: individual driving habits, car performance, maintenance issues, crash data, vehicle location data, airbag deployment, etc.
Georgia-based insurance company NCC recently tested Google Glass with its field adjusters. They found leveraging wearable devices (Google Glass) could have an immediate impact in its catastrophe division, delivering real-time information from field adjusters working on complex losses. NCC is not alone. A recent Accenture survey showed 31% of insurance executives are already using wearables to engage customers, employees and business partners. Telematics and wearables adoption is increasing and those who leverage the technology in their offerings will differentiate themselves from the rest.
- Enterprise Mobility Management. Insurers are faced with the task of integrating personal mobile devices into the company’s IT ecosystem while maintaining the required levels of security and privacy—particularly when dealing with customer information. Putting the right EMM tools and security measures in place to support BYOD and adoption of mobile across the enterprise will bestow confidence in employees and enhance their productivity.
2016 will continue to see big changes in enterprise mobility. Those companies that follow a strategy focused on customer experience and leverage mobile to enhance customer engagements will rise to the top and reap the benefits. Need help devising your Enterprise Mobile Strategy? Propelics’ Enterprise Mobile Roadmap Kickstart will enable your enterprise to develop a true mobile strategy and roadmap. Our strategists help you visualize, define, and prioritize mobile opportunities as well as identify and mitigate any risks. The result is a Mobile Strategy and Roadmap fine-tuned for maximum business benefit and end-user adoption.