A report from The Economist Intelligence Unit How mobile is transforming insurance From protector to partner: Can mobile expand insurers’ relationships with consumers? How mobile is transforming insurance Contents Preface Introduction How open to mobile are the insured? Insurer capabilities and success stories The changing insurer-agent relationship 11 Customer loyalty 13 Conclusion 16 Appendix: Executive survey results 17 Appendix: Consumer survey results 24 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance Preface From protector to partner: Can mobile expand insurers’ relationships with consumers? explores how mobile technologies are transforming the insurance industry The “anytime, anywhere” interactions that mobile enables are allowing a new level of intimacy in the insurer-policyholder relationship with the potential to change the insurance game The report explores how insurers can become trusted partners that provide valuable new services that help policyholders identify and assess risks as well as gain protection tailored to their individual needs As the basis for this research, The Economist Intelligence Unit conducted two global surveys, sponsored by SAP The first polled 113 insurance executives in June 2014 and the other polled 1,827 consumers in September 2014 The findings and views expressed in this report not necessarily reflect the views of the sponsor The author was Anthony O’Donnell Riva Richmond edited the report and Mike Kenny was responsible for the layout We would like to thank all of the executives who participated, whether on record or anonymously, for their valuable insights © The Economist Intelligence Unit Limited 2014 Interviewees Mark Boxer, executive vice-president and global chief information officer at Cigna Francisco Duque, marketing manager at Suramericana, a unit of SURA Group Michael Fitzgerald, senior analyst Celent Seamus Fitzpatrick, senior vice-president for mobile sales technology integration at Combined Insurance Eric Herbek, vice-president of product development for Consumer Health Engagement at Cigna Neff Hudson, emerging channels executive at USAA Kevin Murray, group chief operating officer and UK chief information officer at AXA Rick Roy, chief information officer at CUNA Mutual Group How mobile is transforming insurance About the surveys This report is based on two new surveys conducted by The Economist Intelligence Unit (EIU) and sponsored by SAP: one of 113 insurance executives in June 2014 and the other of 1,827 consumers in September 2014 The executive survey The survey of executives at life, property/casualty and health insurers went to a senior group Almost six in 10 (59%) worked in the C-suite, including chief executives, chief financial officers, chief risk officers and CIOs Another 7% were at the vice-president or director level or ran business units The survey attracted executives at large insurers primarily, including many national or global operations About half (48%) generated annual revenue of more than $5bn, and just over onequarter (27%) had assets between $1bn and $5bn Respondents were fairly evenly distributed across North America, EMEA, Latin America and Asia Three countries accounted for almost half (48%) of respondents: the US, the UK and Brazil Eight percent came from France and 5% from Japan The consumer survey Respondents to the consumer survey were from five regions and 48 countries All currently use mobile devices and © The Economist Intelligence Unit Limited 2014 have bank accounts About 13% of respondents were from the US, and 6% each were from Brazil, Mexico, Canada, China, the UK and France; no other country accounted for more than 4% Emerging markets were well-represented, with 19% of respondents hailing from the BRIC countries and another 48% from a more broadly defined group of emerging economies About onefifth (19%) came from North America, 19% from Latin America, 23% from EMEA, 26% from AsiaPacific and 14% from Middle and Eastern Europe, specifically The median survey-taker was in the 41-to-50 age group—the average age was 45 Men outnumbered women by a ratio of 57:43 In terms of income, respondents exhibited a dumbbell pattern: the largest group made more than $125,000 per year (14%), while the second-largest made less than $10,000 (9%) and the third largest earned between $10,000 and $15,000 (7%) The average annual income of respondents was approximately $57,000 Most have smartphones (86%) and almost half have tablets (47%) A significant portion also uses a feature phone (22%)—a basic phone for calls and texts, with simple games and Internet connectivity How mobile is transforming insurance Introduction Little more than a decade ago, mobile technology at insurance companies was limited to BlackBerry devices for executives and “rugged” laptops for field claims adjusters Today the picture is very different The consumerisation of technology has put an array of mobile technologies and services into the hands of both insurers and their policyholders, changing the way they interact and shining a spotlight on customer service While the Internet has enabled a new level of efficiency and convenience, mobile has enabled truly “anytime, anywhere” customer engagement As a result, a new level of intimacy is developing in insurers’ relationships with their policyholders In a survey of 113 insurance executives conducted in June 2014 by The Economist Intelligence Unit, sponsored by SAP, 62% of respondents see mobile as offering unique capabilities with the potential to change the insurance game Mobile is enabling insurers to reach current and potential customers in new ways with new offerings Not only can mobile make communication more convenient and frequent, it now supports a new paradigm: Insurers can become trusted partners that provide policyholders with valuable new services that help them identify and assess risks—and take action to protect themselves based on their individual needs As mobile technologies continue to be more and more widely adopted, they are also improving the efficiency and responsiveness of employees at insurance companies and their many partner companies Executives who agree that mobile provides a new set of capabilities and has a business changing-potential that other channels lack, by region (% of executives) North America 79 Latin America 68 Middle and Eastern Europe Asia 61 55 Source: Economist Intelligence Unit survey, September 2014 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance How open to mobile are the insured? Insurers have long struggled with many advances in “customer experience” for the simple reason that their touchpoints with policyholders tend to be few and far between While consumers may interact with their banks several times a week, they may contact their insurer only occasionally—to purchase a policy, to pay their premium and, potentially, to file a claim According to a companion survey of 1,827 insurance and banking customers polled in August and September 2014 by the EIU, more than half deal with their insurer once a year or less often When they connect, the interaction rarely takes place on a mobile device Only 26% of consumers have ever connected with their insurer via mobile When they interact with their insurer on mobile, the reason is convenience—just as it is for banking Mobile lets them communicate with their insurer any time they want (60%) without having to wait (41%) or make a trip to meet with an agent (37%) Nonetheless, policyholders today are disinclined to use their mobile devices While 61% of respondents say they would use a mobile device to interact with their insurer if it were easy and safe, a significant minority (39%) say that even then they would not By contrast, 74% of these respondents Percentage of insurance customers who have used mobile technologies to connect with their insurers, by region (% of consumer respondents) Locate third-party service providers (eg, authorized repair centres, physicians) Shop for or compare policies North America Latin America EMEA Asia 23 21 28 Update policy and personal data Research or purchase other financial services (eg, banking, mortgage, legal) 13 16 23 21 23 16 20 Access proof of insurance, check policy 22 20 24 Review risk level (eg, health check) 10 17 20 File claims and check claim history and status 13 14 19 19 24 25 21 15 30 23 27 26 Pay premiums and see payment history North America Latin America EMEA Asia 17 29 23 North America Latin America EMEA Asia Receive alerts (eg, expiration and renewal) 16 12 15 14 Source: Economist Intelligence Unit survey, September 2014 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance Insurers and consumers are somewhat at odds in their attitudes towards data collection say they would use mobile to bank if it were easy and safe, while 26% would not Of those consumers who interact with insurers via mobile, only 23% say that they are more satisfied with the mobile experience than with the desktop experience The largest group of respondents (45%) say the experience is inferior to that of desktop computers Similarly, security concerns and preference for PCs were top reasons for avoiding mobile banking, suggesting that many financial-services firms have work to in the security area and with their mobile experiences Consumers are especially wary about sharing private data with their insurer, including data generated by mobile devices and sensors Seven of 10 policyholders (70%) say they would be strongly or moderately concerned about their insurer collecting and using their personal information to personalise products and services Almost as many (67%) would feel the same way about insurers collecting personal data to discourage risky behaviour Interestingly, when the question is stated slightly differently—collecting personal information to encourage healthy behaviour—the level of high-to-moderate concern drops to 62% Between 76% and 87% of consumers have strong or moderate concerns about collection of data from a range of sources including mobile devices, location software, social media, wearable devices (eg Fitbit) and sensors (eg fire alarms) Despite consumer concerns, one-third (32%) of insurers are collecting data on policy risk and another third (33%) plan to within three years Insurers that move ahead without getting their policyholders on board by explaining the benefits offered and the privacy protections guaranteed may be putting themselves at risk of backlash The mobile imperative in an “omnichannel” world Although insurers and consumers are somewhat at odds in their attitudes towards data collection (much of which will be generated by mobile devices), their attitudes may soon converge Consumers may be reluctant to share their data, but they want to benefit from the aggregate data that insurers collect to get a better understanding of how to manage health, property and lifestyle risks About one-quarter of respondents say they have viewed their driving history (25%) and fire and surveillance data (24%) and gotten advice about managing risks and premiums, while more than half would like to so Consumers may be more likely to share data as they see the benefits in gaining a new understanding of how to manage their health, property and lifestyle risks These findings set the stage for a breakthrough in the insurer-customer relationship enabled by the unique capabilities of mobile More than three-quarters (77%) of policyholders would exchange personal information for lower premiums, according to an October 2014 global study by Accenture, a global advisory firm Mobile has become one of many channels that insurers must support More than half (53%) of insurance executives surveyed by the EIU How concerned are you about your insurer collecting and using data from the following sources? (% of consumers who are very or somewhat concerned) Mobile phone, tablet 83 Social media 82 Location data (eg, GPS) 81 Connected devices (eg, automobile sensors, smoke detectors, security systems) Wearables (eg, Fitbit) Other personal or behavioural data 77 75 86 Source: Economist Intelligence Unit survey, September 2014 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance How concerned are you about your insurer collecting and using your personal information to— (% of consumer respondents) Asia EMEA Latin America MEE North America Personalise products and services Strongly concerned Moderately concerned Minimally concerned Not at all concerned Strongly concerned Moderately concerned Minimally concerned Not at all concerned 31 20 9 26 41 19 12 35 26 26 46 15 Discourage risky behaviour 28 24 43 21 25 10 10 14 24 41 34 40 24 20 42 36 26 27 24 40 39 36 26 Encourage healthy behaviour Strongly concerned Moderately concerned Minimally concerned Not at all concerned 27 22 27 39 25 39 11 23 13 12 27 12 24 24 37 37 27 30 30 16 Source: Economist Intelligence Unit survey, September 2014 ❛❛ Mobile is unique for its ubiquity and the services that it can enable, but it still must be complemented by other channels ❜❜ Francisco Javier Duque, marketing manager of SURA Group acknowledge that customers learn and buy in many ways—from web and mobile to word-of-mouth and traditional advertising—and that every one of these channels must be supported The 18% who disagreed with the need to support multiple channels tended to come from smaller and more specialised insurers Asked directly whether mobile is just another channel, about one-third (32%) of executives disagree, another third agree (36%) and the remaining third are not sure However, 62% see mobile as having capabilities that other channels not—capabilities with the potential to change the game For example, through sensors, location-based services and telemetry, mobile empowers insurers to collect data that correlates with risk and enables the delivery of custom offerings Policyholders can inventory property, document damage and file claims with their devices “Mobile is unique for its ubiquity and the services that it can enable, but it still must be complemented by other channels,” says Francisco Javier Duque, marketing manager at Suramericana, the insurance and social security subsidiary of SURA Group “It presents difficulties in accommodating the variety of devices and operating systems, but it creates opportunities because it facilitates access to information and services and accompanying the client on an anytime-anywhere basis.” SURA’s business model goes beyond the traditional indemnifying benefit of insurance, or paying claims in the event of a loss, Mr Duque says Have you used your mobile device to get any of the following types of information and advice? (% of consumer respondents) Have done 52 Manage my and my family’s health 34 Manage my personal assets and related risks 36 48 27 Legal advice and/or services View driving history and manage driving risks and auto premiums View home fire and surveillance data and manage related risks and premiums Would like to 50 25 53 24 54 Source: Economist Intelligence Unit survey, September 2014 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance “SURA’s customer experience is designed for our policyholders to enjoy quality, timely service delivered in an integrated manner, so that we can develop a long-term, win/win relationship.” SURA, a multi-line insurer based in Medellin, Colombia, was the first insurer in Latin America to offer a telematics-powered, usage-based autoinsurance programme, and it provides policyholders with a range of downloadable applications for Apple and Android devices “These enable us to maintain contact with policyholders, educate in preventive health, schedule medical appointments, manage risks and request roadside services,” Mr Duque says “We also have a GPS service for private vehicles and commercial fleets through which our customers can access a variety of useful information for safe and reliable driving— © The Economist Intelligence Unit Limited 2014 we capture information such as location and driving style to generate added value.” Since 2001, SURA has offered online services to enable agents and policyholders to interact and execute transactions at the company’s site, while its digital channel has evolved into a multi-channel approach “Now, with smartphones, we can offer an even higher quality of services, some through the traditional navigator and others from applications downloaded to mobile devices,” Mr Duque says “It’s a challenge for companies to simply initiate and complete service within a single channel, let alone begin in one and end in another,” he adds “But customer experience must be designed in a way that channels complement each other to support better service.” How mobile is transforming insurance Insurers need to provide customers with digital pathways that make decisionmaking easy “That could take the form of text on screen, an avatar or a phonecall offer—the point is to offer help at the decision point.” Neff Hudson, emerging channels executive at USAA Insurer capabilities and success stories USAA, a San Antonio, Texas-based insurer and financial-services company that serves military personnel, has become a leader in customer-facing mobile capabilities because of its need to reach its clients when they are deployed Today, mobile is USAA’s largest contact channel, reporting 590m interactions during 2013 By contrast, its website logged 350m interactions and its voice-response system received 110m calls, according to Neff Hudson, the company’s emerging channels executive USAA aims to provide both high-tech and “high-touch” services, giving policyholders the option to talk to a person when desired while also providing digital pathways that make decisionmaking easy “That could take the form of text on screen, an avatar or a phone-call offer—the point is to offer help at the decision point and emulate the logical flow of the person making the decision,” Mr Hudson explains The mobile aspect is particularly transformative For instance, it fundamentally changes the relationship of driver to car and driver to insurer, Mr Hudson says “Instead of the old paper policy that sat in the glove box, we can put the entire policy on your phone,” he says “With a driver’s permission, USAA can use GPS to send a tow truck [and] coach policyholders on driver safety.” In the last couple of years, USAA has created apps designed to reduce losses It has an app that enables fire-hazard self-assessments and recently © The Economist Intelligence Unit Limited 2014 launched another that can capture video and deliver a repair estimate within a few hours The proliferation of mobile and other remote devices is rapidly reshaping the insurer-customer relationship, making it more personal and enabling insurers to be more useful to people in their day-to-day lives “When we see the emergence of connected homes, Google rolling out driverless cars and mobile devices hitting scale, it suggests a very different future for insurance,” Mr Hudson says “In this emerging world, insurance will be about individual protection generally, rather than a policy for your car, house, etc.” In the meantime, mobile is causing insurers to rethink their distribution and service models, according to Rick Roy, chief information officer (CIO) at CUNA Mutual Group, a North American provider of insurance and financial products to credit unions “Even insurers who haven’t considered themselves direct-to-consumer in the past should engage the consumer directly, taking advantage of the fact that everybody has three devices,” he says “In some cases, this is an incremental change, in others a transformation.” CUNA Mutual has instituted a policy that prioritises mobile functionality for both internal and external users “This has meant a big change in our application-development approach” to use more agile methodologies that involve rapid prototype development, Mr Roy says CUNA recently launched a mobile service for customers How mobile is transforming insurance at the same airport gate or flight, access useful travel information and buy travel insurance before boarding the plane Mr Murray believes the next breakthrough in mobile will be voice analytics because it addresses two of the most common limitations of devices: the size of the screen and the difficulty of inputting information “Devices that can respond to vocal commands will break the threshold of confidence for many consumers.” Voice plays a key role in USAA’s concept of a virtual assistant or agent that accompanies the policyholder through mobile and remote technology, including sensors within a home “We’ve worked on visual avatars and ideas around active help, where a policyholder can simply ask the app to show an insurance ID card, give 15 © The Economist Intelligence Unit Limited 2014 navigational advice or begin the claims process,” Mr Hudson says “This is a concept of an agent in a broader sense: someone who can act on your behalf.” USAA is also experimenting with a mobile savings coach who can encourage good spending habits “We’re starting with savings, but it can extend to any risk factor where behavioural change is the goal, such as aggressive driving,” he says The company is also working with IBM to integrate Watson cognitive-computing capabilities into customer service The idea is to enable “complex virtual advice in response to a life change, such as leaving active military duty,” Mr Hudson says “We’re trying to introduce advice at scale in digital, and we think that cognitive computing will be a big part of that.” How mobile is transforming insurance Conclusion Mobile will drive a significant improvement in the insurercustomer relationship 16 While policyholders’ current use of mobile technology is modest, it remains a valuable channel for something that both they and their insurers expect to be a rare occurrence: an insurance claim Mobile capabilities are also vital for insurers seeking to serve customers in the channel of their choice, whether for research, purchases, supplying policy information changes or handling billing, payment issues and claims Similar considerations apply to insurers’ relationships with business partners Even as the unique power of mobile brings insurers closer to customers, it is also the next frontier in competing for agents and other partners’ attention by making it easier to business For consumers, agents, prospects and even internal associates, mobile is rapidly becoming the © The Economist Intelligence Unit Limited 2014 channel of choice It is emerging as the premier communication and transaction channel as well as an important driver of new efficiencies for customers and insurance operations But the most profound implications of mobile reside in the quality of the user experience In the short term, this means a vastly improved customer and partner experience In the longer term, the user experience will drive a significant improvement in the insurer-customer relationship, which some bold insurers are already demonstrating Mobile and other remote technologies are enabling insurers to be their customers’ constant companion in assessing and mitigating risks and to take on the role of a trusted advisor Insurers who grasp this potential will be the leaders in a rapidly transforming industry How mobile is transforming insurance Appendix: Executive survey results Percentages may not add to 100% owing to rounding or the ability of respondents to choose multiple responses How customers primarily learn about and make decisions to buy the insurance products your organisation provides? How will they learn about and make decisions to buy your organisation’s insurance products in the future? Please select the top three channels in each column (% respondents) Now Three years from now Five years from now Transaction channel: Learn about insurance products Brokers, agents PC to access your website 90 51 44 63 34 41 PC to access an aggregator’s website 52 46 Call centre 34 68 38 29 Mobile devices 60 19 Social media 62 59 Other customers/word-of-mouth 66 67 60 35 43 Transaction channel: Purchase insurance products Brokers, agents PC to access your website 45 Call centre Other customers/word-of-mouth 17 © The Economist Intelligence Unit Limited 2014 53 53 71 49 43 31 Mobile devices 64 16 55 40 66 67 47 33 70 63 47 PC to access an aggregator’s website Social media 90 52 42 How mobile is transforming insurance Are these channels managed separately in your organisation—each in its own silo—or are they integrated? How will they be managed in the future? Please select one in each column (% respondents) Now Each of the channels is managed separately Three years from now Five years from now 38 23 24 38 Some are integrated, but not all 51 18 24 All channels are integrated (ie, we have “omnichannel” capabilities) 26 58 At your organisation, which of the following stakeholders use custom mobile technologies today? Which you believe will use them three years from now? Please select all that apply in each column (% respondents) Now Three years from now Five years from now Stakeholder Policyholders 70 60 47 52 Prospective customers 70 45 51 51 Front-office employees (eg, customer support including customer-facing aspects of sales and claims) 54 45 Middle office employees (eg, product, policy, middle-office aspects of sales and claims) 58 47 41 Back-office employees (eg, finance, risk, regulation, administration) 49 53 44 Third-party sales partners (eg, agents, brokers) 61 61 46 Third-party support partners (eg, adjusters, claims specialists, authorised service and repair shops, healthcare providers, pharmacists) 53 58 Which mobile features can your customers currently use, and which your company expect to support three years from now? Please select all that apply in each column (% respondents) Now Three years from now Five years from now Mobile feature Access and manage accounts, ID cards, policy documents 51 Purchase and manage policies, pay premiums 52 45 25 49 48 37 53 44 38 42 48 55 64 49 45 Receive personalised information and/or offers on products, prices, agents, brokers (eg, based on behaviours, preferences, history, location) © The Economist Intelligence Unit Limited 2014 60 46 Access customer-service representatives via email, text message and social media 18 67 42 34 Submit and update documents (eg, via device-based cameras) Receive, view and share information with insurance companies via sensors (eg, in cars and wearables) 55 44 41 Locate third-party support partners (authorised service/repair centres, healthcare providers) Receive personalised recommendations about risky and healthy behaviour (eg, lifestyle, health, driving) 61 45 46 Document and provide information about properties and assets, damages; file claims Access personalised risk-management tools (eg, via mobile-data analytics) 68 47 42 How mobile is transforming insurance What types and sources of personal mobile data from policyholders does your organisation currently collect? What will it collect in the future? Please select all that apply in each column (% respondents) Now Three years from now Five years from now Data type Location data (eg, GPS) 52 47 47 Social media 60 59 39 43 Other personal or behavioural data 48 Mobile phone, tablet 51 24 Wearables 60 53 46 49 34 Connected devices (eg, automobile sensors, smoke detectors, security systems) 61 48 52 Do you collect mobile data relevant to the level of risk in the policies you underwrite (eg, health indicators, driving habits, property status)? (% respondents) We this now 32 We plan to this within the next three years 33 We will not this within the next three years 35 We use or plan to use this data to: (% respondents) Assess risk 48 Recommend relevant products / services 25 Change behaviour and reduce risk 22 Extend discounts Don’t know How consumers’ privacy concerns affect your company’s decisions to collect and use personal data to provide individualised service, influence behaviour and set prices? Please select one in each row (% respondents) Curtail significantly Curtail somewhat Curtail slightly Do not curtail at all Don’t know Personalised service 32 25 20 13 11 Discourage risky behaviour 15 39 17 13 16 Encourage healthy behaviour 11 19 © The Economist Intelligence Unit Limited 2014 25 25 19 20 How mobile is transforming insurance Please indicate the extent to which you agree or disagree with the following statements about mobile services Please select one in each row (% respondents) Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree Strongly disagree Don’t know Mobile is fine for simple tasks, but agents are necessary to facilitate conversations, personally engage customers and explain complex products 38 28 19 12 Consumers expect mobile services from insurance companies to offer the same personalisation and ease of use as those of popular shopping sites 29 38 19 61 Mobile provides a new set of capabilities and has a business-changing potential that other channels lack 28 34 29 Mobile is just one channel, no more important than any other 13 23 28 25 Our customers trust us to insure them more than they would trust an Internet or telecom company, even one with a strong brand name and broad customer base 29 29 24 Our customers generally use multiple channels to research our products and make buying decisions and expect us to support all of them (eg, have “omnichannel” capabilities) 15 38 22 11 We have invested in games or game-like experiences on mobile devices to engage consumers or educate them about less risky behaviours 18 14 24 16 19 How will the migration of customers to mobile technologies affect customer attrition (eg, churn, defection to competitors)? (% respondents) Attrition will rise 38 Attrition will decline 23 Not sure 39 Why you believe attrition will rise? Please select all that apply (% respondents) Barriers to market entry will fall, leading to more new providers 31 Switching to new providers will become easier 81 Basic insurance services will become even more commoditised 48 Human interaction will decrease 24 Security concerns will increase 24 20 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance Why you believe attrition will decline? Please select all that apply (% respondents) Managing and renewing insurance will become easier and faster 58 Insurers will have more ways to differentiate themselves 31 Insurers will gain scope for personalisation using customer data 38 “Insurers will gain scope to address niche markets” 38 Insurers will be able to build loyalty by providing innovative features 54 Insurers will offer advisory services, becoming more than just insurance suppliers 46 Insurers will get better at predicting which customers are likely to leave and making offers to get them to stay 42 Greater efficiency will allow insurers to lower costs for customers 38 Many customers will prefer self-service over interacting with personnel 38 In your opinion, to what extent is the growing adoption of mobile technology changing the following? Please select one in each row (% respondents) Strongly Moderately Slightly Not at all Don’t know Your company’s business model 35 29 25 The way employees at your company work (ie, increased emphasis on data analysis and decision-making) 25 36 26 The data your company collects, analyses and uses 28 35 26 35 26 How your company’s employees engage customers 28 How your company engages customers with self-service capabilities 32 33 20 In your opinion, which cost areas mobile technologies have the greatest potential to minimise now and in the future? Please select the top two in each column (% respondents) Selling insurance policies Now 75 44 Providing and receiving information (eg, documents, news) Providing advice and support 21 © The Economist Intelligence Unit Limited 2014 65 57 54 Claims processing Renewing policies Three years from now 46 47 67 63 63 How mobile is transforming insurance What are your organisation’s global annual revenues in US dollars? What are your main functional roles? Select no more than three (% respondents) (% respondents) $500m or less Customer service 21 $500m to $1bn General management 17 20 $1bn to $5bn Marketing and sales 27 19 $5bn to $10bn Strategy and business development 19 17 $10bn or more IT 29 13 Actuary 12 Finance 12 Which of the following best describes your title? (% respondents) Underwriting Board member Other 12 10 Compliance CEO/President/Managing director Risk CFO/Treasurer/Comptroller Information and research CIO/Technology director 12 Human resources Chief actuary officer/Head of actuary Portfolio management Chief underwriting officer 5 Legal Chief risk officer 4 Regulatory Other C-level executive 16 R&D SVP/VP/Director Head of Claims Head of Compliance What is your primary industry? Select all that apply (% respondents) Head of Business Unit Head of Department Property and casualty insurance (including auto, home) 10 70 Manager 23 Other 22 In which region are you based? Life insurance (Number of respondents) Select all that apply (% respondents) Middle and Eastern Europe 24 North America 24 EMEA 23 Latin America 22 Asia 20 © The Economist Intelligence Unit Limited 2014 36 Health insurance 22 Life insurance Individual life 88 Group life 61 Annuities 61 Other life insurance 10 How mobile is transforming insurance Property & casualty insurance Approximately how many consumer accounts does your company have? Select all that apply (% respondents) (% respondents) Personal lines Under 5,000 72 Small commercial 5,000 to 10,000 54 12 Large commercial 10,000 to 20,000 48 11 Other P&C insurance 20,000 to 40,000 18 13 40,000 to 70,000 70,000 to 100,000 Health insurance Over 100,000 Select all that apply (% respondents) 52 Individual 88 Group 76 Are you familiar with mobile technology trends in insurance? (% respondents) Yes 100 No In which country/region are you personally based? (% respondents) United States 19 United Kingdom 15 Brazil 14 Germany Mexico Australia, India, Japan, Singapore, Switzerland (each) Austria, China, Czech Republic, Italy (each) Canada, Poland, Russia (each) Africa, Middle East and North Arica, Spain (each) 23 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance Appendix: Consumer survey results Percentages may not add to 100% owing to rounding or the ability of respondents to choose multiple responses How often you estimate you interact with your insurance(s) providers? (% respondents) Daily Weekly Monthly 10 Quarterly 12 Every six months 18 Yearly 36 Less than once a year 17 What is your preferred method for performing the following tasks? Please select one in each row (% respondents) In person or by phone On a PC On a mobile device By postal mail I have not performed this task Shopping for and comparing policies 27 Purchasing policies and making payments 33 Managing accounts and updating policies (eg, adding family members, new property) 27 Filing, managing and tracking claims 29 Finding third-party service providers (eg, repair centres, rental cars or equipment, healthcare providers) 20 47 Getting personalised advice on managing my health and/or property risks 38 29 24 © The Economist Intelligence Unit Limited 2014 56 61 50 49 42 9 15 12 15 17 23 How mobile is transforming insurance Have you used your mobile device to any of the following activities? (% respondents) Mobile feature I have used my mobile device to this I have not used my mobile device to this but would be willing to I have not used my mobile device to this and would not be willing to Don’t know Shop for or compare policies 24 Locate third-party service providers (eg, authorized repair centres, physicians) 26 Research or purchase other financial services (eg, banking, mortgage, legal) 20 Pay premiums and see payment history 21 Access proof of insurance, check policy 17 Receive alerts (eg, expiration and renewal) 23 Update policy and personal data 18 File claims and check claim history and status 13 Review your risk level (eg, health check) 11 40 28 44 22 41 30 44 28 51 24 49 48 49 21 28 29 49 28 12 What are your top reasons for using a mobile device to interact with your insurance providers? Please select the top three (% respondents) There is no agent or office where I live 15 I not want to visit an agent or office 37 I can deal with my insurer any time I want 60 I can deal with my insurer any place I want 35 I not have to wait for service (eg, on a line) 41 Easy access to records of my transactions 31 Easy access to personalised information in one place 19 The internet is the only way my insurer does business Using a mobile device is more secure All of my insurance information is in one place 13 Other If you could interact with your insurer(s) using your mobile device easily and safely, would you interact with them more often? (% respondents) Yes 61 No 39 25 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance How concerned are you about your insurer collecting and using your personal information (ie, data about your location and habits) for the following purposes? Please select one in each row (% respondents) Strongly concerned Moderately concerned Minimally concerned Not at all concerned Personalisation of products and services 29 41 21 Discourage risky behaviour 27 40 23 10 Encourage healthy behaviour 25 37 26 13 How concerned are you about your insurer collecting and using the following types of data? Please select one in each row (% respondents) Very concerned Somewhat concerned Not at all concerned Location data (eg, GPS) 41 40 19 Social media 40 42 17 Other personal or behavioural data 43 43 14 Mobile phone, tablet 36 47 17 Wearables (eg, Fitbit) 32 Connected devices (eg, automobile sensors, smoke detectors, security systems) 33 43 25 44 24 Have you used your mobile device to get any of the following types of information and advice from your insurance company? Activities I have done Please select all that apply (% respondents) Get advice on managing my health and that of my family 52 Get advice on managing my personal assets and related risks (eg, property, auto, estate, will) 36 Get legal advice and/or services 27 View driving history and get advice on managing driving risks and auto premium costs 25 View home fire and surveillance data and get advice on related risks and premium costs 24 Have you used your mobile device to get any of the following types of information and advice from your insurance company? Activities I would like to Please select all that apply (% respondents) Get advice on managing my health and that of my family 34 Get advice on managing my personal assets and related risks (eg, property, auto, estate, will) 48 Get legal advice and/or services 50 View driving history and get advice on managing driving risks and auto premium costs 53 View home fire and surveillance data and get advice on related risks and premium costs 54 26 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance Overall when it comes to dealing with insurance, how satisfied are you with your mobile experience relative to your desktop experience? (% respondents) Much more satisfied with my mobile experience than my desktop experience Somewhat more satisfied with my mobile experience than my desktop experience 15 I have about the same level of satisfaction with my mobile experience as my desktop experience 33 Somewhat less satisfied with my mobile experience than my desktop experience 22 Much less satisfied with my mobile experience than my desktop experience 23 In what country you live? Do you have one or more insurance policies (eg, health, life, disability, auto, renters, homeowners)? (% respondents) (% respondents) US 13 Yes 100 Brazil, Canada, China, France, Japan, Mexico, UK No Australia, Germany, India Africa, Argentina, Colombia, Indonesia, Middle East/North Africa, Russia, Singapore, Switzerland Embedded Data Field: Region Austria, Czech Republic, Poland, Spain (% respondents) Italy Asia-Pacific 26 EMEA 23 Latin America What kind of mobile device you use? 19 Please select all that apply (% respondents) North America Feature phone (ie, a basic phone for calls and texts, sometimes with simple games and Internet capabilities) MEE 19 14 22 Smartphone (eg, iPhone, Android, Windows Phone, BlackBerry) 86 Tablet 47 I not use a mobile device Do you use a bank to handle personal financial matters? (Note: A bank would provide you with a savings and/or checking account.) (% respondents) Yes 100 No 27 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance Whilst every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd nor the sponsor of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the information, opinions or conclusions set out in the white paper About our Sponsor As the world’s leading provider of enterprise application software, SAP delivers products and services that help accelerate business innovation for its more than 183,000 customers in more than 120 countries See more related to this Cover: © Jose Luis Pelaez Inc/Blend Images/Corbis report at sap.com/insurance 28 © The Economist Intelligence Unit Limited 2014 London 20 Cabot Square London E14 4QW United Kingdom Tel: (44.20) 7576 8000 Fax: (44.20) 7576 8476 E-mail: london@eiu.com New York 750 Third Avenue 5th Floor New York, NY 10017 United States Tel: (1.212) 554 0600 Fax: (1.212) 586 0248 E-mail: newyork@eiu.com Hong Kong 6001, Central Plaza 18 Harbour Road Wanchai Hong Kong Tel: (852) 2585 3888 Fax: (852) 2802 7638 E-mail: hongkong@eiu.com Geneva Boulevard des Tranchées 16 1206 Geneva Switzerland Tel: (41) 22 566 2470 Fax: (41) 22 346 93 47 E-mail: geneva@eiu.com [...].. .How mobile is transforming insurance and distributors called ZONE, an iPad-optimised app that enables financial advisors and creditunion members to customise a “zone” of risk/ reward that aligns with investment goals and is associated with the company’s Members Zone annuity CUNA Mutual’s AskAuto mobile service supports the cross-sale of credit insurance and loans when credit-union members visit... personalised advice on managing my health and/or property risks 38 29 24 © The Economist Intelligence Unit Limited 2014 56 61 50 49 42 9 9 15 1 8 2 7 4 3 9 3 7 12 15 17 23 How mobile is transforming insurance Have you used your mobile device to do any of the following activities? (% respondents) Mobile feature I have used my mobile device to do this I have not used my mobile device to do this but would... risks (eg, property, auto, estate, will) 48 Get legal advice and/or services 50 View driving history and get advice on managing driving risks and auto premium costs 53 View home fire and surveillance data and get advice on related risks and premium costs 54 26 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance Overall when it comes to dealing with insurance, how satisfied... Curtail slightly Do not curtail at all Don’t know Personalised service 32 25 20 13 11 Discourage risky behaviour 15 39 17 13 16 Encourage healthy behaviour 11 19 © The Economist Intelligence Unit Limited 2014 25 25 19 20 How mobile is transforming insurance Please indicate the extent to which you agree or disagree with the following statements about mobile services Please select one in each row (% respondents)... relationship, which some bold insurers are already demonstrating Mobile and other remote technologies are enabling insurers to be their customers’ constant companion in assessing and mitigating risks and to take on the role of a trusted advisor Insurers who grasp this potential will be the leaders in a rapidly transforming industry How mobile is transforming insurance Appendix: Executive survey results Percentages... improvement in speed-of-business and policy-issue rates and more timely payments, according to Mr Fitzpatrick How mobile is transforming insurance 4 The changing insurer-agent relationship More direct sales are likely as insurers offer convenient transactions and services via mobile To the extent that mobile brings insurers closer to policyholders, it raises the spectre of “disintermediation”—a direct business... medical advice or discounts on insurance premiums AXA is looking for ways to deepen customer bonds through engaging apps like its Gate Who prototype, which enables users to identify people How mobile is transforming insurance at the same airport gate or flight, access useful travel information and buy travel insurance before boarding the plane Mr Murray believes the next breakthrough in mobile will be... personalised information in one place 19 The internet is the only way my insurer does business 5 Using a mobile device is more secure 5 All of my insurance information is in one place 13 Other 1 If you could interact with your insurer(s) using your mobile device easily and safely, would you interact with them more often? (% respondents) Yes 61 No 39 25 © The Economist Intelligence Unit Limited 2014 How mobile. .. computing will be a big part of that.” How mobile is transforming insurance Conclusion Mobile will drive a significant improvement in the insurercustomer relationship 16 While policyholders’ current use of mobile technology is modest, it remains a valuable channel for something that both they and their insurers expect to be a rare occurrence: an insurance claim Mobile capabilities are also vital for... account.) (% respondents) Yes 100 No 0 27 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance Whilst every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd nor the sponsor of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the information, opinions ... launched a mobile service for customers How mobile is transforming insurance and distributors called ZONE, an iPad-optimised app that enables financial advisors and creditunion members to customise... on related risks and premium costs 54 26 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance Overall when it comes to dealing with insurance, how satisfied are... Asia 61 55 Source: Economist Intelligence Unit survey, September 2014 © The Economist Intelligence Unit Limited 2014 How mobile is transforming insurance How open to mobile are the insured? Insurers