We look at the benefits to businesses and consumers, and how apps can modernise the market.
Insurance companies must solve the dual challenge of overcoming the perception of the industry as being complex and old-fashioned and – in many cases – the reality of this. One solution is to build a mobile insurance app. We look at the benefits to businesses and consumers, and how apps can modernise the market.
The insurance market has a long history. Contracts were used by merchants of Babylon as early as 4,000-3,000 BC and the practice continued in ancient Greece and Rome. Maritime and fire insurance were in place by the 15th and 16th centuries, respectively. Insurance as a modern market began in a coffee shop on the Thames. Edward Lloyd’s was a site of marine intelligence and the founding point of Lloyd’s of London, today the world’s largest commercial reinsurance marketplace.
A lot has changed in 6,000 years, yet many aspects of the insurance market remain outdated and in need of modernisation. Even those insurance firms that have undergone digitalisation – or been founded as digital-first challengers – suffer from a negative public perception in this regard.
Recent surveys highlight consumer perceptions of the insurance market as complex and outdated. A 2023 Bain & Company survey found that a significant portion see the traditional insurance model as insufficient. Another 2023 survey by the Kaiser Family Foundation reveals that over half of insured individuals encountered issues with their insurance in the past year. These include denied claims and complicated prior authorization processes, further highlighting the perceived complexity and inefficiency within the market.
From meerkats to medical: types of mobile insurance app
When you think of an insurance app, the first thing that will likely spring to mind is a consumer app. This can be largely attributed to the heavy marketing of meerkats by comparison site Compare the Market. However, apps are also used by insurance companies themselves, as well as enterprises looking to manage insurance policies for employees. App builders looking to tap into the market should also consider these audiences when looking to create an insurance platform.
Insurance apps for enterprise can help streamline business processes, improve risk management and enhance collaboration within the insurance industry. Examples include Sapiens CoreSuite, designed for property and casualty insurers, and Salesforce’s connected CRM insurance platform.
On the consumer side, the Meerkat app from Compare the Market is perhaps the most well-known. This allows users to compare a huge number of insurance offerings across a range of sectors, from travel and motoring to home contents and internet. More specialised apps on the other hand focus on particular industries. Examples include Rooster, for car insurance; Bupa Be.Me, for health insurance; and Fetch, for pet insurance.
Benefits of apps for enterprise and consumer
Digital transformation is a key strategy for all businesses and should be a priority for insurers, whose market is seen by many as outdated and out of touch. Creating an insurance app can be a means of overcoming this, addressing the rising consumer demand for convenient, mobile-first solutions.
Benefits for business include:
- Customer monetisation: Insurers can increase revenue from existing customers by upselling, cross-selling and personalising offerings. Apps can be used to better understand customer behaviour and preferences to offer tailored services and products, enhancing customer value and driving additional revenue streams.
- Streamlined operations: Apps can integrate functions like policy management, billing and claims processing, improving efficiencies and reducing the need for manual processes.
- Improved risk management and compliance: Enterprise apps offer advanced data management tools, enabling better risk assessment and ensuring compliance with industry regulations.
- Scalability: Cloud-based apps allow companies to grow their operations without needing to spend on additional hardware and infrastructure.
Benefits for consumers include:
- Third-party rewards: We can look again at Meerkat as a prime example of this. Two-for-one offers on meals and cinema tickets as well as discounts on things like coffee and pizza help drive downloads and foster consumer loyalty.
- Cost savings: Apps often provide tools such as usage-based insurance that can help consumers save money on premiums.
- Digital documentation: Apps usually have features that allow users to store and access digital versions of insurance documents, reducing the need for physical paperwork.
- Real-time updates, notifications and communications: Customers can get real-time notifications on things like claims status and policy changes, and – whether via a chatbot or integration with a messaging service like WhatsApp – can easily get in touch with providers.
Underwriting the future: launching a mobile app
Building an app can seem daunting, but the right technology provider should be able to guide you through the process and create a platform that delivers the kind of benefits we’ve outlined above.
You might have a well-planned out idea that you want brought to life, or you could be looking for app inspiration to help modernise your insurance firm. The right software and app developer should have the flexibility to adapt to the needs of your business and existing skill set of your team.
While some businesses and individuals will have time and resources to get involved in an app build, the majority will need to remain focussed on their core business function: the day to day running of the company and delivering value and service for customers. As such, trust is critical when entering into a relationship with a tech provider.
Adding an insurance app to their offering is just one way in which firms can overcome negative consumer sentiment of the sector. The market’s long history can be used to its advantage – via associations with trust and integrity, for instance – but businesses should never underestimate the power of modernisation and throwing a Meerkat into the mix.
To find out more about how a mobile app could benefit your business, get in touch.