Technology is transforming the insurance industry. Join us as we look at some of the ways insurers have started using apps to get customers more engaged, improve their services, and in some cases to transform their offering altogether.
Insurance has always had a part to play in our most exciting stories.
We’re not being tongue-in-cheek. People first started distributing risk around 5,000 years ago, when Chinese merchants had the bright idea to mutually protect their business by spreading their goods across each other’s ships when navigating treacherous rivers.
More recently, marine insurance oiled the wheels of empire; and underwriting has helped countless small businesses to blossom.
Today, this ancient industry is once again finding its place at the head of the curve – and it’s doing so by embracing apps.
How apps are transforming the insurance industry
When we say “apps are transforming the insurance industry”, we really mean it. They are changing the very services insurers offer, and how they are provided.
Here are some examples of how insurance apps are adding efficiencies, enabling new end-to-end processes, and ultimately allowing insurers to do things that simply weren’t possible in the past:
Cuvva – provides car insurance by the hour
Cuvva app users get instant access to by-the-hour cover for any car. This makes it much easier to car-share with friends and family.
Trov – on-demand contents insurance
The Trov app provides on-demand contents insurance on an item-by-item basis. It automatically logs the user’s IoT devices, which provides both ease-of-use for the customer and reliable data for the insurer.
Jamii – cheaper health insurance through automation
Jamii has made health insurance affordable to thousands of Tanzanians, by using an automated system to slash the company’s operating costs. You can read more about Jamii in our article on digital engagement.
How app services can change public perceptions of insurance
It’s nothing personal, but as things stand the average person doesn’t particularly enjoy the experience of buying insurance. For many, it’s a grudge purchase.
But by adding engaging, expedient and life-enhancing features to their apps, insurers can quickly see a drastic change in how they are perceived. Suddenly they’re no longer an expensive annual obligation – they’re a clever and constant helper.
The benefit insurers can yield from regular engagement is utterly transformative:
- It keeps the insurer’s brand in the customer’s life, year-round. This reinforces the notion that insurance services play an important role.
- It keeps the insurer’s app on the customer’s phone. Alongside the boost this brings in terms of brand visibility, engaging customers with digital channels is also an essential part of the digital transformation process. Getting customers to go digital can reduce your operating costs, and also provides a more up-to-date user experience.
- More data = smarter marketing. Every time a customer uses digital services, the service provider can learn more things about them. For example, in certain services, if the customer logs into an app at home, the service provider can see which other devices are using the same wi-fi. This enables them to offer to directly offer quotes for insurance on the devices identified, via the app.
There’s a shift underway in how people use insurance. Instead of huffing and puffing their way to an annual renewal of service, customers can now use dynamic app features like those described above to make their insurance more personalised, more useful and better suited to their budget.
Not just doing better; doing more
Insurance companies can further satisfy and engage their customers by adding value-added services (VAS) that have little to do with insurance itself.
Pairing an app with a suitable value-added service (VAS) can greatly increase app engagement, and in some cases may redefine a brand’s strategic position.
Think of Orange and Orange Wednesdays. Now we can achieve the same effect with an app.
How Magpie is helping insurers ride the digital wave
Magpie facilitates innovative insurance app services for clients across the industry, including contents, travel and automotive. We add these services into our clients’ apps to create an aggregated service offering for the customer. Here are a few of the value-added services we can provide:
Insurance Centre is a single home for all the customer’s policies – including ones from other insurers. This offers a far more convenient solution for the customer, compared with managing multiple policies through multiple channels.
For the insurer, this can lead to a more efficient and cost-effective claims process, and it also increases app retention rates among customers.
Plus, if a customer uploads details of policies with other providers, our system notifies the service provider when they are due a renewal, which provides an opportunity to sell them a renewal or refer them to a partner.
Breakdown Assist is a Guardian Angel for motorists, and a reliable source of information for insurers.
If the customer is involved in a breakdown or accident, the service will walk them through the steps they need to take to cater for both their safety and their insurance claim. Breakdown Assist communicates with a clarity that cuts through the shock of the incident.
Checks the customer’s details during the on-boarding process – so the service provider can find out details including their phone’s make, model, OS and even its condition. Fone Check also performs anti-fraud and money laundering checks, and can be customised to accommodate additional requirements. These features combine to ensure insurers know who they’re dealing with like never before.
From the customer’s perspective, Fone Check is a fantastic time-saver. It provides the insurer with pertinent information – so the customer doesn’t have to.
A far safer place to keep warranties than at the bottom of a sock draw!
Warranty Stack is a digital repository for the user’s product warranties. The information gathered in-app can be used to cross-promote your insurance services – e.g. if the customer adds an iPhone warranty to Warranty Stack, this information can be used to trigger phone insurance marketing communications.
These examples should give you a flavour of what we can achieve through adding innovative services to insurance apps. They’re just the tip of the iceberg – so if you’d like us to paint you a fuller picture of how we can make your app more effective and engaging, please contact us.
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