Mobile phone applications would make the purchase and renewal of insurance simpler, according to a report by Telstra.
The report, issued in conjunction with the Financial Services Council (FSC), identifies opportunities for growth in the insurance industry through the use of mobile phone technology.
… an application which enabled consumers to apply for life insurance via their mobile would encourage around 12% of non-insurance holders to consider purchasing
According to the report, an application which enabled consumers to apply for life insurance via their mobile would encourage around 12% of non-insurance holders to consider purchasing the product.
It also found that innovation leveraging mobile-enabled technology has the potential to:
- Deliver growth for insurers through greater customer loyalty and category growth
- Deliver benefits highly valued by insurance customers including greater convenience, personalisation and fairer premiums
- Provide insurers with the opportunity to create a deep interactive and ongoing relationship with their customers, thereby changing the commoditised, purely transactional nature of the market
“As the Telstra report notes, mobile applications provide insurers with a new opportunity to create a more interactive and ongoing relationship with their customers,” said FSC CEO, John Brogden. “The use of mobile technology can also assist in the underwriting and claims processes and thereby make the process of arranging life insurance cover and claiming on a policy easier, simpler and less time consuming.”
In addition to testing consumer appetite for mobile insurance services, the report also investigated renewal and switching behaviour. The survey noted that while more than 70% of life insurance holders did not get a competitive quote at the time of their last renewal, there was a 41% increase in the likelihood of consumers getting a quote at their next renewal.
The main reasons given for switching life insurers were price (40%) and advice from a broker/planner (29.6%). In addition, risk and life insurance products rated the lowest of all categories in terms of customer satisfaction.
Risk and life insurance products rated the lowest of all categories in terms of customer satisfaction
The report’s author, Telstra Enterprise and Government National General Manager Industry Development, Rocky Scopelliti, said that the report illustrates how mobile technology can assist insurers.
“Mobile enabled technology has the potential to deliver growth for insures through greater customer loyalty and category growth. It can provide greater convenience, personalisation and pay-as-you-use premiums as well as provide the opportunity to better connect with customers,” Mr Scopelliti said.
“Australia is one of the world’s most mature mobile markets. Today, 17% of Australians are using their mobile-connected devices to search for and make decisions about insurance, yet most Australian insurers are yet to offer any mobile applications for its employees, customers, agents or brokers,” he added.
