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TRANSCRIPT
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© 2011 Forrester Research, Inc. Reproduction Prohibited2 © 2009 Forrester Research, Inc. Reproduction Prohibited
Market Update: State of the Insurance Mobile Apps
Ellen Carney, Senior Analyst
Thursday, November 3, 2011, 1:30 – 2:00 pm
A presentation at A.M. Best Company's 6th Annual
Insurance Marketing & Advertising Summit
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• How is mobile changing the business of insurance?
• How are consumers embracing mobile?
• How are insurers and technology firms responding?
• What’s the WIM?
What we're going to be covering today...
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Your customers are re-imagining what insurance means to them...
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That demand for digital experiences is pressuring insurers to shift to doing the right things from just doing stuff right
Source: Forrsights Budgets And Priorities Tracker Survey, Q2 2011 (6-22-2011)
Base: 2,741 IT Decision makers; 74 North American Insurance IT Decision makers
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And insurance IT organizations are ramping up to support new thinking...
Source: Forrsights Budgets And Priorities Tracker Survey, Q2 2011 (6-22-2011)
Base: 2,741 IT Decision makers; 74 North American Insurance IT Decision makers
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...with mobile playing a starring role
Base: 185 NAM Insurance Network and Telecom Decisionmakers
Source: Forrsights Networks And Telecommunications Survey, Q1 2011
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About 60% of online retailers surveyed have defined the role mobile will play in the business
June 2011 “The State Of Retailing Online 2011: Marketing, Social, And Mobile”
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...and they have definite revenue goals for their mobile strategy
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...meanwhile, we’ve finally reached the inflection point in the US for mobile banking
50 million
US adult
mobile bankers
by 2015!
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Consumers are going to your online sites to give you money, now and in the future
Base: 315 US and Canadian consumers who have purchased insurance
“You indicated that you visited an insurance company online during the past 12 months. Of the following activities, which of them was the reason for your most recent visit?”
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4%
17%
25%
48%
54%
60%
66%
55%
79%
80%
66%
69%
Mobile
Automated phone
Office/branch
Phone with a rep
Web site
Satisfaction
Use
Source: North American Technographics® Financial Services Online Benchmark Recontact Survey, Q2 2010 (US)
Base: US online adults who own at least one insurance product and
have used each channel at least once in the past 12 months
Channels used to interact with an insurer over the past 12 monthsPercentage of users who are satisfied or extremely satisfied with each channel
...but in insurance, mobile adoption is low, even if customers are happy
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Mobile services – both Web and applications – have to offer three core benefits to drive usage
Convenience Quotient
Immediacy Simplicity Context
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Geico uses the mobile camera to return a quote by email
Basic information is captured from the driver’s license
Next steps are communicated.
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...while UK aggregator, comparethemarket.com, lets shoppers get a quote by taking a picture of the license plate
iPhone app that enable a user to:
Create a profile (done once, usable
many times thereafter).
Initiate a quote request for a new
auto policy by taking a picture of a
license plate and submit the quote
request.
App sends the user’s profile info
plus any other info on the quote
request.
Quotes from multiple carriers
generated and presented in one
screen back to the user on the
iPhone.
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Allstate’s Digital Locker gives insureds more reasons to engage, driving additional sales
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Tokio Marine offers location-aware, ad-hoc sports and travel insurance
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Tech vendors are stepping in front office solutions for mobile capture in a variety of formats
Source: http://www.expedata.net/
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...including applications that handles the prep and capture for producer management
Source: http://www.millbrookinc.com/mobile_apps.asp
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The more tech-savvy your customers are, the more likely they are to change insurers
“How likely are you to switch some of your business away from the firms below?” (% indicating likely or very likely)
Base: 7,727 Online AdultsSource: North American Technographics Customer Experience Online Survey, Q4 2010 (US)
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And your future customers hold other information sources in higher regard...
Base: US Youth Respondents 12-17 N=4,588
Source: North American Technographics Youth Online Survey, Q3 2011 (US)
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...and don’t trust mobile ads
Base: US Youth Respondents 12-17 N=4,588
Source: North American Technographics Youth Online Survey, Q3 2011 (US)
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What’s the WIM ?
The role that technology plays in insurance business has shifted from being
just a way to reduce costs to being integrated into how business gets done...
– ...meaning that technology performance—especially mobile--has implications
around customer and agent experience
Cool customer and distributor-facing innovations can be enabled by mobile
– ...meaning strategies to address mobile have to be a fundamental part of any
emerging technology strategy
Mobile functionality that helps agents help their clients is critical
– ...meaning it has to prove you’re easy to do business with
The online experience you deliver is now key to insurance customer and agent
loyalty...
– ...and lack of a strategy that will build consumer trust will impact your revenue,
cash flow, and profitability
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Thank you
Ellen Carney+1 617-613-6328
www.forrester.com