(Rodney Johnson is North America global practice lead forCapgemini Global Financial Services.)

If you stop and take a look at any technology vertical, mobilehas quickly become the most dominant entity. With the rise ofsmartphones, mobile is an extension of us as opposed to just a wayto communicate—most of the approximately six billion mobilesubscribers across the globe will agree. With 24 billion connected devices by 2020, this mindset isn'tchanging anytime soon, and it's already having an enormous impacton the insurance industry.

With the current challenges of rising costs and the increasinglycomplex process of submitting a claim, insurers can take advantageof leveraging the mobile channel to increase revenue, reduce costs,enhance the customer experience and improve operational efficiency.According to Capgemini andEFMA's World Insurance Report 2013, insurers need to invest inthe mobile channel, and it's becoming the channel of choice for anumber of customer interactions. Even with this trend, companiesneed to insure a mobile app supplements the overallexperience and doesn't dominate it.

Additionally, the ROI on investing in mobile within the industryis easily over 30 percent of current claims processing costs. Thisalone is evidence that insurers should embrace the mobile channel,but more importantly, 20 percent of consumers identify that mobilepolicy information is critical when selecting an insuranceprovider.

Insurers See the Value in Mobile

Many insurers are pursuing integrated multi-distributionstrategies with a high priority on creating mobile capabilities soconsumers can easily evaluate and buy an insurance product, submitclaims online and more. Key examples of current offerings fromleading insurers include:

• Geicoand Alfa:Leveraged the mobile development platform, Kony, to delivercapabilities to both business-to-consumer andbusiness-to-enterprise. They also developed "mobile insuranceagents" that can be accessed from any smartphone.
• Liberty Mutual: Developed native apps so users cantake pictures of damage, view policy details and add claims. Theirwebsite also offers mobile access for anytime, anywhereservice. 
• StateFarm: Created a "pocket agent" whichallows consumers to find an agent, file a claim, make a bakingdeposit, or even get road-side assistance. They also developed amobile website for easier access on the go.
• Progressive: Produced a VINcapture app that allows users to get quotes, submit claims andreport vehicle damage. Mobile website can be access from anywhereto perform policy changes and payments.

Mobile Can Solve Many Issues

Mobile is an important answer to the challenges the insurancespace has by simply offering several capabilities in a flexibleway. Customers want access no matter where they are, and simplyput, the mobile channel is the perfect way to ensure that'spossible.

In addition to "standard" content customers can find in a mobileapp—such as their policy number or payment due date—there areeffective ways to make these offerings deeper with additionalfeatures. For example, insurers can better incorporate marketing,services, and sales departments to ensure as many customertouch-points as possible. This can easily roll into membership andenrollment to allow customers to sign up for a policy—from therethey can make payments through finance and accounting features.

If a customer is unsure of what type of policy they need, mobileapps can integrate "e-advice" for personal insurance plans. The appcan also remember who the customer's personal insurance advisor is,and provide ways for them to keep in touch and build arelationship.

Should a customer get into an accident, an insurer's mobile appshould allow an easy way to file a claim immediately, and even uselocation-based services to track where the accident took place.From there, customers can process a claim, and when it's ready,they can track Payout.p

It's All in theImplementation

Of course, the idea of a mobile app is something that's prettystandard in today's world. To ensure success in delivering themobile channel effectively, implementation of specific strategiesis needed.

• Define the Experience: Lay out the properrequirements needed for a positive customer experience. This caneffectively be done by story boarding what type of experience youwant to provide.
• Design with Customer in Mind: Ensure you'regiving enough time to test several UI designs to ensure theapplication flows well. Design a prototype to ensure it can betested before it reached the masses.
• Build and Test: Build inample time to review, test and develop the app, keeping differentOS platforms in mind.
• Implement: Ensure the app properly integrateswith other aspects of the multi-distribution approach. Acceptanceand integrating testing is critical for success.

Mobile Can't Do Everything

While basic capabilities are available, not everything can beoffered simply through an app. There is no doubt that immediateresults would be seen if the mobile channel were to integrate someof these capabilities, but it doesn't beat meeting with an agent.While online and mobile channels are now preferred by many whentrying to find the best insurance rate or comparing plans,customers still want to talk to someone in person. The trust aspectof building a relationship with an agent is supreme, especiallywhen there is no physical product to be had. Customers need to feellike their insurance company has their best interest in mind, andthis is something that can't be replicated with an app.

Luckily, insurance companies understand the fact that whilemobile app availability is important, it's part of a bigger puzzleto ensure a positive customer experience. Capgemini andEFMA's  Word Insurance Report 2013 notes that insurers arefocused on developing multi-distribution approaches where mobile isintegrated effectively to meet all forms of customer needs tomaximize impact on the value chain and more importantly, increasecustomer share. There is no doubt that this is a balancing act.

In Connected World, Mobile Is Critical

If I had to take one key point from the Capgemini and EFMA'sWorld Insurance Report 2013, it's that it is critical for theinsurance industry to take a hard look at the reality that is themobile channel and how important it is to sustainable success.Mobile is a lifestyle—not just a way to communicate—and most of the6 billion plus mobile consumers use their devices to pay bills,read news or shop. Insurers need to be a part of this by quicklybringing to market effective and fun mobile applications. In theend, the customer experience is what matters most.