What specific value are insurers aiming for through their mobilestrategy?

PropertyCasualty360.com asked several leading insurancetechnology analysts what insurance carriers could—and should—do todevelop a mobile strategy that reaches out to both their businesspartners—the independent agency workforce—and their policyholderswho are demanding more of their insurance providers.

Taking part in the discussion are: Chad Hersh of Novarica,Kimberly Harris-Ferrante of Gartner, Leah Hollstegge of Ward Group,Gerald Shields of The Nolan Company, Ellen Carney of Forrester, andChuck Johnson of Celent.

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Chad Hersh, managing director, InsurancePractice, Novarica:

In addition to the “display my insurance ID card on my phone”features that are cropping up daily, carriers are slowly startingto leverage mobile apps to streamline or improve processes andreduce costs.

For example, one carrier is allowing documents and receipts tobe submitted via a smartphone's camera. Another is providingclaims adjusters with adjusting apps that work on tablets andsmartphones, allowing mobile submission plus real time photo,video, and audio recordings. A life/annuity writer has providediPads to producers with marketing brochures, videos, calculators,and more. Another life insurer provides its regional VPs with allof their key producer data for use offline on iOS.

All of these are examples of carriers leveraging mobile for realvalue, not just games, flashlights, or even policy inquiries.

Kimberly Harris-Ferrante, VP and distinguishedanalyst, Gartner

Focus on mobility has been rising among insurers and isprojected to continue to grow during the next few years. Accordingto a 2012 Gartner study, 80 percent of life and 78 percent ofP&C insurers in North America were planning on increasing theirmobility spend through 2015. Focus among many of these companiesincluded customer-, agent- and employee-facing applications, withgreater interest in customer-facing overall.

The value to be derived from mobility, however, differs acrosscompanies, and many expect significant returns from mobility spendacross the company. Gartner research found that an improvedcustomer relation is the top objective for both life and P&Cinsurers.

Using mobile as a tool to improve interactivity is top of mindamong insurers as they assess the value of mobile on both sales andcustomer service. Increasing productivity and cost savingsare also projected benefit for many companies. Fewer companiesreport revenue increases, business process improvements, orstraight-through-processing as the anticipated return oninvestment.

Leah Hollstegge, manger, WardGroup

Mobile strategies change depending on the target user. Forpolicyholders, insurers are replicating their website capabilitiesvia mobile technology and providing the same self-service items(i.e. pay bill, change address, access ID cards, report a claim,check claim status). Many companies are also exploring theability to purchase insurance via mobile technology and integratingtelematics into mobile devices.

With regards to mobile strategy for employees and agents,carriers are dedicating efforts to extending their existingapplications on phones and tablet devices. This can apply tosales delivery, loss control, property inspections, claimsadjusting, and really almost any process in the field.

Gerald Shields, IT practice director, The NolanCo.

Having served as CIO for a large insurer supporting a largefield force, we identified three core reasons for embracing mobileapplications:

• Reach – to increase reach and ease-of-access to a broaderaudience—people who depend on information in real time. Thisincludes agents, policyholders, employees and others, whether inthe quarry pit, on the road or in the coffee shop.
• Effectiveness – enabling agents to quickly provide fact-basedanswers rather than saying “let me get back to you.”
• Attractiveness – we are moving from an internet world toa real time world where users see their mobile device as theircomputer. New generation users expect to have full capabilities attheir fingertips. If we are to compete for the generation enteringthe market, insurers must be attractive to them as a serviceprovider and as an employer.

Ellen Carney, senior analyst, e-business andchannel strategy, Forrester

When it comes to the business value of mobile insurancestrategies, 54 percent of digital insurance teams have toldForrester that, first and foremost, mobile is about creatingtighter bonds with customers—both agents and consumers. Aclose second and closely linked with the first is mobile's abilityto improve customer satisfaction, voiced by 52 percent.

In both cases, it's about providing the customer with convenientaccess to the information they need, such as getting a list oflocal agents that Gen Y's are most likely to use (talk about asurprising marriage of channels!) and the mobilized agent portalthat puts need-to-know information in the hands of the agent justwhen he or she needs it.

Mobile is also playing heavily into the branding of insurers,with more than 40 percent of carriers telling us that a priority oftheir mobile strategy is to promote their companies as innovators.

What's at the bottom of the list for mobile value? To playcatch up to their competitors held the lowest priority with just 2percent of e-business executives mentioning this as a prioritywhile the next lowest priority was reducing operating or marketingcosts, with 10 percent telling us that this was a priority.

Chuck Johnston, research director, Celent

Insurers recognize leveraging mobile capabilities effectivelyinitially requires strong alignment to existing business models andthen the foresight to move beyond those models as the mobilecustomer and producer experience evolves.

With the exception of auto claims—where first notice of loss androadside service are obvious consumer use cases—most insurersacross lines are focusing on enabling the agent, whether it bethrough eApps, rate quotes, CRM data or status updates.

Ultimately, as the consumer mobile lifestyle redefines insuranceopportunity (on demand insurance, location-based offers, real timerisk alerts), the agent/carriers relationship must dramaticallyevolve or it will quickly erode.