© 2011 forrester research, inc. reproduction prohibited 1

© 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


• 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...


Your customers are re-imagining what insurance means to them...


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


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


...with mobile playing a starring role

Base: 185 NAM Insurance Network and Telecom Decisionmakers

Source: Forrsights Networks And Telecommunications Survey, Q1 2011


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”


...and they have definite revenue goals for their mobile strategy


...meanwhile, we’ve finally reached the inflection point in the US for mobile banking

50 million

US adult

mobile bankers

by 2015!


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?”


4%

17%

25%

48%

54%

60%

66%

55%

79%

80%

66%

69%

Mobile

Automated phone

Office/branch

Phone with a rep

Web site

Mail

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


Mobile services – both Web and applications – have to offer three core benefits to drive usage

Convenience Quotient

Immediacy Simplicity Context


Geico uses the mobile camera to return a quote by email

Basic information is captured from the driver’s license

Next steps are communicated.


...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.


Allstate’s Digital Locker gives insureds more reasons to engage, driving additional sales


Tokio Marine offers location-aware, ad-hoc sports and travel insurance


Tech vendors are stepping in front office solutions for mobile capture in a variety of formats

Source: http://www.expedata.net/


...including applications that handles the prep and capture for producer management

Source: http://www.millbrookinc.com/mobile_apps.asp


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)


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)


...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)


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

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you

Ellen Carney+1 617-613-6328

[email protected]

www.forrester.com

© 2011 forrester research, inc. reproduction prohibited 1

Documents

forrester research

mobile slide

travel insurance slide

mobile strategy slide

happy slide

business of insurance

mobile services

mobile capture