Thanks to technology insurance companies no longer need to rely on brokers or agents to reach consumers. With new and alternate channels, insurers can reach digital-savvy clients. Mobile apps allow these companies to offer their services conveniently and to a wider audience. Even agents now work with insurers who offer digital capabilities which will increase their efficiency in doing business.
Now, life insurance companies rely mostly on digital maturity more than businesses that offer casualty or property insurance. That’s because they deal with more channels of distribution and client engagement models that influence how fast or slow new digital strategies can be adopted.
Therefore, to remain competitive in this digital world, insurance companies must adapt digital service models or otherwise risk losing clients and other key players. Here are mobile challenges that insurance companies should overcome to thrive in this fast-paced digital era.
Underutilized Mobile Channel
The mobile industry has grown significantly. Mobiles, in fact, have become an integral part of all digital transactions. That’s because they provide a significant level of convenience and flexibility. Individuals can complete a mobile transaction from anywhere they are, whether at home, in the car or office, etc.
But, many insurers are not leveraging their mobile channels. Most companies available in the market don’t even have mobile apps. And those that do, don’t provide adequate mobile as well as customer services. Therefore, these apps don’t add any value to consumers. So, for customers who rely on mobile transactions, this can be a frustrating experience since the app doesn’t provide many useful features thus forcing them to use another channel for completing their transactions.
Audit trails are records of events or procedures that provide a documented history of certain transactions or actions. These records are proof of operational integrity as well as compliance. They validate actions and outcomes. They include details such as time, date and user information that’s associated with a particular transaction. However, insurers have a hard time capturing these records as per their transaction with mobile apps. For instance, capturing who signed in, the time, date as well as their location if a user uses an app is quite tricky. Therefore, insurers find it hard demonstrating compliance. As a result, should legal disputes occur, companies find it difficult to defend themselves. To avoid this, insurance companies can maintain a top-down commitment by IT personnel.
This involves web extension and integration of existing systems to leverage existing IT assets. Most companies find it difficult to upgrade an old method/technology (legacy system) into a new one. However, as with mobile apps, they need frequent upgrades to improve tools as well as the user interface. But, a company with an old outdated system chases consumers away. Therefore, insurers should integrate with disparate systems. This allows them to provide an automated straightforward process.
This is a legal way of getting approval or consent on electronic forms or documents. E-signatures help agents close deals faster and frees them from certain time-consuming admin tasks. By having recipients e-sign documents, transactions are completed faster. Insurance companies should ensure that they allow e-signatures as this builds customer loyalty and trust.
Mobile App Security
Cybersecurity is a common challenge faced by many insurance companies. Because of the large amount and crucial data they collect, these companies are often victims of cyber theft. Now, safeguarding customers’ data is very important. Otherwise, you’ll not only lose clients but you’ll also face legal liabilities should data be stolen.
Cybersecurity is an essential factor for consumers when deciding an insurance provider. Statistics reveal that data protection is among the customers’ biggest factor in their loyalty to the insurer. Therefore, insurers can authenticate users and secure their mobile apps to protect clients against online attackers.
Final Thoughts Mobile is an excellent method of solving traditional challenges faced by insurance companies. For instance, field agents can engage with clients and close deals in real-time using a tablet. Mobile isn’t just a sales channel. It’s also an engagement channel that can be used to increase customer loyalty as well as interaction. Therefore, insurance companies need to overcome the above challenges or otherwise they risk being outshined by those who do so.
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