Reports indicate that life insurers are taking it slow in developing mobile-based relationships with clients. Results of a consumer survey show that this may be the right strategy. For its recent report—“So What if There is an App?”—
The respondents said they might be willing to use a life insurance app, but since very few exist today, they seem to be more content to receive service through other channels. However, 60% said they have some expectations of there being mobile apps in life insurance.
If the smartphone users had a mobile app for life insurance, they would expect to be able to perform basic self-service-related functions, such as an address change or pay a bill. Celent found it interesting that using the app for product comparisons or information gathering was considered a “nice to have” versus a “need to have.”
Overall, respondents were provided a list of 16 features or functionalities (including address change, pay bill, calculators, insurance quote, claims form download) and asked if they would be more likely to use the app. The majority of the respondents said “No” or “Don’t think I’ll ever use a life insurance mobile app.” However, when the data was cross-tabulated by age, 100% of the respondents in age 18 to 29 group said “Yes.”
Despite the relatively small number of survey respondents (35 consumers), Celent believes the views expressed are broadly indicative of consumer attitudes, and “there is a need for life insurers to have a presence on mobile platforms because it is the future technology for consumers.”
Celent recommends life insurers proceeding with mobile app development know their customer segments, support multiple platforms, mobile-enable websites and have a fully functional mobile app or mobile-based application available within two years.
“Mobile today is hyperfocused on apps because the mobile browser is lacking,” the report states. “When the mobile browser matures and catches up to the app experience, Celent believes there will be a shift away from apps to browser-based searching.”
As for IT’s role, Celent says the IT function should ensure that a mobile website and a lightweight interface are available to allow marketing to spend their dollars on as many apps as they desire. “IT must make sure the apps are secure and hooked to the right environments. It is our view that CIOs should not invest in mobile apps before they invest in mobile Web.”
