Make Way For Mobility

Property/casualty insurers are evaluating 2011 mobile technology plans, and many are following a model used by banks, airlines, hotels and other service providers that are focused on improving transaction and service levels, reports Novarica.

The New York-based research and advisory firm tapped its Insurance Technology Research Council to capture data from a cross-section of 61 property/casualty insurers (all sizes were represented, with 62% representing mid-size carriers) and found a strong interest in mobile tech among P&C carriers.

The report, "Mobile Technology at U.S. P&C Insurers: Platforms, Use and Impact," reveals that investment is aimed largely at consumer applications that support the front office. Accordingly, the carriers that have invested in modern core systems will have an easier time developing mobile applications and supporting mobile platforms, says Novarica Partner Chad Hersh, who authored the report along with analyst Kimberly Markel.

Hersh says that although overall spending is not projected to change dramatically in 2011, the numbers do reflect the growing importance of mobile technology among P&C insurers. Indeed, the percentage of respondents spending less than 0.1% of IT on mobile drops by 3 points, while those spending more than 5% on mobile rises by 3 points. Interestingly, the numbers did reveal some differences in spending according to carrier size. For example, while 52% of all carriers support Blackberries for their claims adjusters, only 27% of small carriers do.

P&C carriers have their eye on more than consumer apps, however, as mobile-equipped laptops and smartphones are already widely deployed amongst claims adjusters. Moreover, Novarica's numbers underscore how rapidly the mobile universe is evolving and consequently, how careful carriers will have to be when selecting which platforms to develop for.

This seems is especially true in the area of smartphones. While Apple's iPhone was first to market and an early favorite with application developers, this is beginning to change. In just over a year on the market, smartphones based on Google's Android operating system have made significant inroads. Indeed, Novarica's numbers show that development for "other" smartphones will rise 10% from 2010.

Tablet adoption is similarly fluid, with greater use of both Apple's iPad and an assemblage of competitors expected in 2011. "Expect an explosion of tablets in late 2010 and into 2011, including a slew of Android tablets and even a Blackberry offering (tentatively named the PlayBook)," notes Hersh in his report. The interrelation of platforms is also noteworthy. Many expect tablet adoption may erode laptop use significantly given the cost differential (iPads start at under $500), battery life (non-Windows tablets average more than twice the battery life of a typical Windows laptop), and ease of use (touch screens and simplified apps, easy-to-handle form factor, small size, etc.).

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