Many consumers still don’t feel comfortable using mobile insurance applications, which is holding back the apps’ widespread adoption, according to a report from the Deloitte Center for Financial Services. The biggest user concerns, said the Deloitte report, “Mobile Financial Services: Raising the Bar on Customer Engagement,” are a lack of trust in the security of wireless networks and the effectiveness of mobile identification technologies. According to the report, 45 percent of insurance customers said they were either extremely concerned or very concerned about mobile devices’ overall data security.
The report also found that 65 percent of respondents with a life insurance policy were not even sure whether their inusrer offered a mobile app; the same held true for 63 percent of respondents with homeowner’s or renter’s insurance, as well as 57 percent of auto insurance consumers.
The Deloitte report argues that insurers should shift their efforts from rolling out new apps to increasing adoption of existing mobile apps and leveraging their capabilities. “The biggest area of opportunity seems to be in security, rather than a certain mobile app or a new shiny feature,” said Jim Eckenrode, the center’s executive director and a co-author of the report. “To boost adoption and set the stage for more ambitious applications, companies will likely have to take tangible steps to reassure consumers about the security of their mobile financial transactions.”
“In the not-too-distant future, new technologies will likely be added to the mobile platform that take advantage of its ability to know where it is, see what is around it, communicate with other local devices, and connect with information sources that have yet to be deployed,” said Robert Berini, a director in the technology practice within Deloitte Consulting LLP's financial services industry group. “Leaders should be planning to rethink how mobile device technologies may develop and be ready to quickly adjust to the emergence of technological enhancements that may not be currently envisioned. Ultimately, it may require companies — and all of us along with them — to re-imagine what mobility means.”
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