While many insurers have adapted basic online services for mobile platforms, the Holy Grail of differentiation has yet to be seized by most industry players.

To accomplish that feat, carriers should capitalize on the unique capabilities of smartphones and tablets to engage more fully with both clients and their own personnel over such devices.

That may be easier said than done, at least when it comes to consumers. A recent survey by Deloitte found the majority of respondents are unaware of basic mobile options already offered by insurers. Another problem is that opportunities to make use of current insurer apps are usually few and far between—such as when renewing a policy or filing a claim.

Yet even in this relatively early stage of development, with a large percentage of policyholders not even cognizant of what insurers have to offer, Deloitte's survey found that 13% of respondents would consider changing carriers based on the availability of more advanced mobile services. That figure jumps to 30% from ages 21 and 29.

Still, for now Deloitte's survey found only 19% characterizing the ability to deal with their insurer on a mobile device as extremely or very important. That's unlikely to change if customer contact over mobile platforms remains generally infrequent and the transactions routine.

Therefore, to become a game-changing factor, insurer apps should prompt interaction on a regular basis and in a significant way.

One prime example is the transition of telematics fueling usage-based auto insurance programs from a monitoring device installed in a vehicle to an app downloaded on the insured's smartphone. Deloitte's survey found that a little over half of respondents would be willing to opt in and test-drive telematics monitoring over their mobile.

Telematics mobile apps could offer additional value-added services to capitalize on the mobile experience and enhance retention potential. For example, carriers could warn policyholders about hazardous road conditions, facilitate roadside assistance, locate lost or stolen vehicles and create a virtual geo-fence to keep track of teenage and elderly drivers, among a number of other location-sensitive services.

Gamification could also be employed as a catalyst to download a telematics app if insurers provide rewards for improvements in a driver's performance as well as for “beating” those in a broader policyholder pool. Carriers could offer premium discounts and higher deductibles to “winners,” or perhaps even reward points that could be used towards the purchase of related products and services.

Telematics could thereby make the customer experience more engaging, gratifying and perhaps even fun—certainly not an attribute traditionally associated with insurance!

In the meantime, mobile technology could enable more personal two-way communication with policyholders, as Deloitte's survey found nearly one-in-three respondents very keen on the notion of speaking “face-to-face” with their insurance agent or claims representative over a video link on their smartphone.

Claims reporting and processing could also be greatly enhanced through mobile technology. Adjusters and fraud investigators can literally hold a policyholder's data in the palm of their hands, aggregating information from in-house systems and third parties on their mobile devices. Both insureds and adjusters can also use smartphones and tablets to record damages, take statements, check coverage details, identify the most convenient repair facilities, and file reports from an accident or disaster site.

In time, telemedicine practiced over mobile devices could facilitate claims management for workers' comp and auto insurers, while carriers may one day make use of mobile data from drones to assess a range of claims, from damaged roofs to bigger catastrophe losses.

In any case, insurers—individually and as an industry—are not operating in a vacuum. They must continue to innovate and more creatively serve customers over mobile devices, if only because the technology has become so ubiquitous that the term “mobile” is relative.

Indeed, Deloitte's survey found that the vast majority of respondents conducting financial transactions over mobile devices—64% for smartphones and 77% for tablets—are doing so at home, rather than using their desktops or laptops. Many are likely multitasking, with a mobile in one hand and a TV remote control in the other, or are perhaps viewing entertainment programs and playing games on their mobile devices instead of watching standard television monitors.

In any case, mobile technology has become integral to the daily lives of a growing number of consumers. Basic mobile capabilities are therefore table stakes for insurers today.

However, those that neglect to innovate and differentiate their mobile capabilities to engage consumers more frequently and meaningfully going forward risk becoming obsolete in a rapidly evolving digital world.

What more might insurers do to better capitalize on mobile opportunities? Check out our full report on the topic in Deloitte University Press as well as our “Closer Look” on the subject.

Special Reports /

Survey: Offer better mobile solutions, and young customers will insure with you

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