In life, some say that happiness is a journey, not a destination, but you could easily apply the same philosophy when it comes to the development of mobile applications for insurance.

That means there is probably no such thing as a “final” strategy or finished product with apps. Mobile technology is advancing in dog-years—what's possible is changing so quickly that every year feels like seven must have passed—so insurers need to constantly keep experimenting and upping their game with new capabilities.

If insurers get complacent, they risk becoming irrelevant in a world where smartphones and tablets are already such an integral part of how people function that most cannot imagine their social and working lives without mobile devices.

The Deloitte Center for Financial Services arranged for a trio of focus groups this summer to explore how mobile capabilities are viewed by consumers when it comes to insurance, banking and asset management.

We're only talking about 30 individuals here, split evenly among three age groups (21-29, 30-46, and 46 and older), so the sample is a bit small from which to draw any grand conclusions. But the level of agreement on certain key points—not only within each segment, but among the three focus groups regardless of age—provides plenty of fodder for insurers to chew on as they assess their mobile strategy.

Consider some of the following general observations from the focus groups, demonstrating how big a role mobile now plays for the average consumer:

Mobile devices were described as “essential” by most of the focus group members, including one who referred to the smartphone as “a way of life.” It's become an extra appendage for many people. Most feel exposed or somehow incomplete without these devices in their hands or at least within easy reach.
As a result, there is no such thing anymore as “downtime.” As soon as there is an “idle” moment, whether in public (malls, train stations, street corners waiting for a light to change) or private (at home or in the office), most people almost instinctively whip out their mobile devices for a variety of functions, both critical and frivolous.
Most of the focus group members said they could not imagine being without a mobile device for more than 24- or 48 hours. (One said his wife didn't want a gift for her birthday, just a promise to spend the day with her with no access to his smartphone. He went along, but confessed that complying was not only very difficult, but painful. He cited addiction-withdrawal-like symptoms — such as agitation, irritability, intense psychological longing, inability to concentrate, etc.)
Mobile devices are so ingrained they often drive how people handle the most routine tasks. One woman said she doesn't even write down, let alone remember anyone's phone number anymore — lamenting how when she lost her smartphone in a cab, she couldn't recall how to reach her husband.
The focus group participants said they are spending more time with mobile devices and less with desktops and laptops — even at home, when they have a choice of devices. Many are still self-described “couch potatoes,” but instead of plopping down just to watch TV, they often multi-task, catching up on their e-mail, news, and games on mobile devices while their favorite programs play in the background. (Of course, more and more are not even bothering with TV, instead watching programs on their tablet or phone.)
Social media has become a routine part of the ebb and flow of life 24/7, thanks in part to mobile technology. More people are checking up on their friends or recording their own adventures on social media sites while on the go, as well as at home. (Note how many TV shows are riding the wave by actively prompting viewers to interact via social media during a program.)
Most of the focus group participants believe mobile devices make them much more efficient and productive in the grand scheme of things. However, they admit it could be a double-edged sword, as they are also prone to “wasting” a lot of time with “trivial” activities on their smartphones or tablets.
Most appeared open to paying for all kinds of transactions (even down to the street vendor level) on their mobile devices via “digital wallet” functions. Indeed, many are already doing so in a limited way, and would appreciate a lot more mobile payment opportunities.
Many said they prefer e-mail to create a paper trail when they do business over the Web, regardless of the device they use to close a transaction.
No one in the focus groups said they were willing to pay any sort of “convenience fee” for doing business via mobile apps, which they believe to be as beneficial from a cost and convenience standpoint for providers as they are for consumers. One participant went so far as to suggest that product and service providers “should be paying us” for downloading and doing business over their apps. Bottom line, few believe financial institutions would be able to charge for an app given the amount of competition in the market, noting that someone is always likely to try to take away business by offering free mobile services for which others are charging.
The focus group participants said they increasingly depend on their mobile devices to keep them informed. “If Godzilla comes out of the water, you have to know right away!” said one attendee.

You get the picture. People are hooked on mobile devices. And they don't even need to be “mobile” anymore—with many routinely taking their smartphone or tablet not just to the dining room table and living room recliner, but to bed and even to the bathroom as well.

Most insurers offer apps of some sort these days, but how much of an impact have they had? How many consumers are aware of these apps, download them, and actually find them useful? And how many insurance apps engage policyholders on a regular basis, as opposed to when a renewal is due, or if a loss occurs? Ultimately, can insurers leverage mobile as a broader differentiator in the market?

We'll explore some potential opportunities and barriers in my next blog later this month.

Special Reports /

Insurers Beware: Even Couch Potatoes Are Going Mobile!

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