While digitalization is entering every single industry, customers expect insurance companies to provide digital tools for managing policies. Adoption of customer-centric digital strategies has been recognized as one of the major trends among insurers. Strategy Meets Action names digital transformation among the top game-changers in the industry, explaining that challenges in customer experience force insurers to invest in new technologies.
People want to communicate their insurance issues largely through mobile channels and seek more personalized offerings. A 2019 Deloitte industry outlook shows the rise in expectations for convenience and customization, as well as the undeniable need for more flexible policies and services.
While most companies admit the benefit of insurance mobile app development, very few are in the game. In the US, less than one-third of the top insurers offer mobile apps. And existing applications mostly fail to engage users and fulfil their function of a universal channel for communication and management of insurance plans.
Reports reveal that less than one-third of customers are satisfied with their insurance providers and even fewer are satisfied with their insurers’ digital strategies. Since inconvenience causes the decrease in loyalty and billions-worth losses for insurance companies, making a helpful app can be a chance for them to boost loyalty.
What customer problems can be solved with an insurance application?
By eliminating common hurdles and simplifying the choice and policy management, insurance companies become several steps closer to a more customer-centric service which can decrease the churn level and bring more revenue.
Most insurance mobile apps are being developed by companies to represent their offers divided into categories like health, property, or travel insurance. Besides branded company apps, there are the following development options:
Insurify. Source: Root
Tomorrow. Source: Coverager
Health insurance apps mostly struggle to achieve enough downloads, with only a few of them reaching more than 100,000. In a 2015 Research2Guidance report, only one application, Aetna Health, was proven to be successful. Recently, new players like Oscar have entered the market, trying to improve the situation with health insurance apps adoption.
What new health insurance apps are embracing is a concept of value-based care, delivering the best care at the lowest cost. How do they live up to this premise and engage users?
Oscar. Source: Wired
What features are a must for a mobile insurance app? We will review them from the perspective of three types of users: patients, insurers, and healthcare providers.
Source: NRMA Insurance
Source: Insurance Agent App
Source: Australian Unity
Source: UPMC Health Plan
The major features of an insurer’s version are the following:
A healthcare provider has to have a personal profile and chatting options. A health insurance application can be a part of a telemedicine service that allows for virtual doctor visits or can only offer to book hospital appointments.
As we’ve said, data collected through an app can improve the level of personalisation of insurance products. Christopher Surdak distinguishes five levels of app’s awareness about a user. At level 1, it just contains information about insurance products and at level 2, it adds some features for users to edit their information or request a quote – nobody needs such limited functionality in an app nowadays. Only at level 3, an app becomes a unified tool for performing every action related to insurance – this is the must minimum value modern insurance apps should deliver.
At level 4, an app becomes context-aware – for example, the Root app gathers information about driving patterns to provide more personalised offers. However, such persistent monitoring may lead to incorrect results and complaints. Innovative car insurance products may offer a telematics box that is installed into a car to monitor driving activity. This way, an app won’t use unnecessary data collected via a smartphone but only the relevant information analysed by a telematics device.
At level 5, an insurance app can use customers’ social data to analyse, for example, their shopping history and recommend certain policies based on that. While such data collection may cause hesitation because of the privacy issues, it can also be helpful in tailoring personalised offers – which is the biggest subject of competition between insurance carriers.
Innovative technologies are in use in the insurance business and help create a higher level of engagement and move towards the practice of more transparent, usage-based pricing for policies. Insurance companies can implement artificial intelligence for:
Customisation, instant interaction, and easy management are three pillars of a successful insurance app. Your solution should be designed in a way for every step of the process – entering personal information, paying for insurance, filing a claim – to be convenient. An engaging application should make customers feel more in control of their expenditures: with this achieved, people can choose a higher premium and stay loyal to their insurer.
If you’re interested in insurance app development, drop us a line and we’ll discuss your ideas and their implementation.
22 October 2020
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