Discussions of mobile and wireless technology in the insurance industry usually come down to two points: Yes, the technology is cool, but do we really need it? There's little to argue about the first point. Being connected anywhere, any time gives agents and claims adjusters freedom they never imagined a decade ago. The second point, though, has been the defining issue regarding mobile/wireless strategies: Companies may be able to survive without such technology today, but without a mobile/wireless strategy, are they limiting the effectiveness of their operations in the future? Industry observers say yes.

Companies are waking up to the fact what they've been doing in the past has been too random, believes Karen Pauli, a senior insurance analyst for TowerGroup. The call to action for wireless, she maintains, translates into exploring the kinds of applications agents and claims people should have on their mobile device to allow them to gather data–information that then can be uploaded directly to the home office.

Celent senior analyst Chad Hersh thinks wireless is still on the cusp. "The technology actually has been a little slow in getting where it needs to be," he says. "The promise of ubiquitous connectivity has not panned out. It's here, but it took a long time to get here, and it's still pretty darn expensive."