"The insurance industry is competitive, as most people make their insurance choices based on price. However, technology is sparking some real innovations in the industry, and they are beginning to attract attention. Because it is easier to attract new, young customers than it is to get older ones to switch, insurers should focus not just on price but also on technological solutions that allow consumers to interact with insurers in exactly the way they want and to get exactly the type of insurance they need. This Report covers some of the challenges involved in attracting these new customers and discusses some of the innovations that are changing the way the industry works."
- Robyn Kaiserman, Senior Financial Services Analyst
This report will cover the following areas:
- Mobile is not being used
- Consumers need help understanding their policies
- Few would recommend their insurance provider
Although providers are developing and promoting them, customers are not using insurance mobile apps. This is likely because there is little need to access a provider or an insurance policy immediately and any information that is needed is either more easily understood by talking to someone or read on a computer screen. While there is some need to make apps available because of consumer expectation that their provider have one, insurance companies should make sure not to have them overshadow other forms of communication, especially agents.
One of the ways insurers can encourage use of their apps is to expand the capabilities they offer beyond just providing access to policies. GEICO, for example, is testing an app that allows customers to track their car maintenance, allowing customers to enter information about their maintenance activities and to receive alerts letting them know when it’s time to get the oil changed or take care of other maintenance issues. Based on the information entered by the customer, the car is given a score and the app offers tips on how to raise the score. While these capabilities are not specifically about insurance, they may encourage customers to use their mobile devices for car-related activities and help keep the insurance-related apps top-of-mind.