An appetite for disruption

How can insurance-based apps disrupt and benefit the industry?

Over the last decade, the insurance industry has seen a need to change perceptions, particularly when it comes to technological growth. The rapid advancement in technology has taken application development to a new level and there are now huge opportunities for insurance firms to leverage data platforms as a way to improve overall operations and customer service.

To truly benefit and remain relevant, insurers need to start investing in mobile technology as customers are now taking interest in providers that can offer efficient and simple processes – specifically from smartphones, iPads and tablets.

According to the Economist Intelligence Unit, 62% of insurance executives believe mobile technology will be the key disrupter for the industry, bringing with it a number of benefits:

Simplified claims processing – this proves beneficial to both the customer and the agent. Apps have been proven to reduce the workload of the insurer by eliminating a number of time-sapping administrative duties – such as filing forms and collating customer data – allowing them to spend their time acquiring and processing a higher volume of customers.

For consumers, the streamlined process ensures claims are handled quickly and efficiently whilst providing the option to track progress, ultimately putting their minds at ease and simultaneously eliminating the number of ‘update’ calls to providers.

Increased revenue – providing customer-centric options – such as capabilities to buy new policies, renew existing ones and pay bills via smartphones – increases the chances for insurers to generate larger profits. Additionally, a number of apps now enable providers to stay connected 24/7, enabling them to process and complete claims, as well as effectively manage potential customers, all from their phone – further serving to drive customer satisfaction and retention.

Accurate and personalised policies – using telematics and wearable technologies, insurers are able to collate real-time information about a customer’s driving behaviour or lifestyle, and therefore accurately assess tailored policies. These technologies serve to encourage consumers to drive safely and/or adopt a healthy way of life by offering discounts, deals or reductions in premiums for ‘good behaviour’. In theory, this then enables insurers to save on compensation pay-outs.

To conclude, mobile technology is enabling insurers to maintain profitability. From apps that allow customers to claim damages instantly, through to productivity apps that keep agents connected to the office, this new technology is ensuring risks are mitigated, productivity is increased, customer service is enhanced, and operational efficiencies are improved.