Insurance carriers looking to bolster their digital ROI and reach their clientele of millennials most effectively must look beyond mobile apps and online portals, into social and messaging apps. We offer a roadmap and use cases for enhancing insurers' digital presence.

1. How Insurers Can
Leverage Social and
Messaging Apps to
Enhance Digital Value
Declining digital ROI for customer engagement and
service means carriers must holistically adopt
more cost-effective channels such as social and
messaging apps to achieve more for less.

2. cognizant reports 2
Executive Summary
We are living in the “everything, everywhere” era
where continuously evolving digital technologies
are driving rapid shifts in consumer behavior and
expectations. In the highly competitive general
insurance market, merely riding the digital wave is
not enough. Insurers must actively seek avenues
for using digital media to enhance customer
service and engagement.
To deliver an integrated digital experience, many
insurers are investing in customer-facing online and
mobile applications. However, these applications
are not providing the right amount of engagement
to capture consumers’ “digital moments,” leaving
insurers underwhelmed with the ROI from these
investments. Customers tend to spend more
time on other apps such as e-mail, blogs, social
networking, messaging, games, etc., meaning that
social and messaging apps hold significant promise
for capturing customers’ digital attention.
This white paper analyzes the current customer
engagement space and recommends how insurers
can leverage social and messaging apps to build a
more holistic digital strategy to deliver improved
sales, service and customer engagement.
Examining Digital ROI
Today’s millennials – who form the bulk of
insurers’ customers and employees – are social,
mobile, empowered and, importantly, persis-
tently connected. Moreover, the high-value digital
services which they are accustomed to receiving
from retailers and travel and hospitality companies
are raising their expectations of insurers.
Insurers are responding by increasing their
digital investments in customer and employee
self-servicing capabilities through mobile apps
and online portals. Examples abound of insurers
enabling customer self-service across the
value chain – from quotations through claims.
A few insurers are also striving to expand
customer mindshare by innovating further.
Esurance’s “feed a craving” functionality, for
instance, lets users find anything from coffee to
cupcakes.1
Number of users who used
the following functions:
Reduced by
25%
over last six
months.
Reduced by
5.4%
over last six
months.
Average portal
traffic of top
insurance
customer portals…
Average unique
visitors of top
insurance
customer portals…
Inquiries
Renewals
Endorsements
Quoting
New Business ProcessingHigh
Low
Number of users who used
the following functions:
High
Low
3/4
of users don’t use
app to manage
insurance.
1/4
of users used app
only to manage
insurance.
Number of users who used
the following functions:
High
Low
3/5
of agents don’t use
apps for their daily
work activities.
2/5
of agents use apps
for their daily work
activities.
Insurance Portal Usage
Among Consumers
Insurance Mobile App
Usage Among Consumers
Insurance Mobile App
Usage Among Agents/Field Staff
Manage Policies
Policy Information and
Reminders/Alerts
Quoting
Endorsements
Quoting
Collaborations with
Internal Staff
Notifications/Alerts
Commissions Management
Insurers’ Struggle to Achieve Digital Adoption
Source: Cognizant analysis based on data from FICO, Gartner and Alexa.com
Figure 1

3. cognizant reports 3
Although insurers are continuously expanding
their mobile and online capabilities, the adoption
of these capabilities among consumers and
agents remains low, as documented in Figure 1,
previous page.
Given this scenario, insurers must introspec-
tively ask themselves: Why aren’t we achieving
the desired ROI from these digital initiatives? Are
these investments enabling customers to serve
themselves, or improving customer service and
engagement levels?
Insurers also need to realize that the high
engagement levels achieved by industries such as
banks through mobile apps and portals are high
bars that most insurers are unlikely to achieve.
Consumer needs are different in insurance; the
transactions are more complex, views are more
detailed and servicing needs are more continuous.
Insurers thus need to think differently and take
a different approach. We believe that insurers
need to take a step back, look at the customer’s
daily use platforms and adopt any and all viable
channels beyond mobile apps and portals to
achieve customer service and engagement goals.
Assessing the Spread of
Millennials’ Daily Use Digital Platforms
Thanks to the exponential rise of digital in most
businesses, numerous platforms exist for insurers
to engage consumers and employees. These
include online, mobile, social, wearables, digital
TVs, kiosks, sensor devices, etc. However, looking
at the spread of users’ digital moments across the
platforms, it is evident that social and messaging
apps are the most popular, as their capabilities
touch the pulse of today’s customer needs for
networking, free calling and texting services,
community games, etc. (see Figure 2). These social
and messaging apps are also most frequently
accessed through mobile devices by users.
It is thus easy to understand the huge interest by
enterprises in social and messaging apps. Evidence
includes: Facebook’s acquisition of WhatsApp for
a whopping $19 billion; Rakuten’s $900 million
acquisition of Viber; WeChat’s contribution to
the doubling of its creator’s (Tencent) stock price
We believe that insurers need to take
a step back, look at the customer’s
daily use platforms and adopt any
and all viable channels beyond mobile
apps and portals to achieve customer
service and engagement goals.
The Rising Tide of Social and Messaging Apps
Source: Cognizant analysis based on data from Magnet Forensics, statista.com and Adobe
Figure 2
203%
149%
66%
37%
85%
Users favor mobile apps
15%
Users favor mobile Web
12hrs/day
on mobile apps
2hrs/day
on mobile Web
Messaging and Social Entertainment and Games
Utilities and Productivity News
4.32
hrs/day
4.32
hrs/day
0.14
hrs/day
23% Mobile 18% Online 6% Others (TV, radio)
% of users downloading these apps
Messaging and Social
Utilities and Productivity 0.36
hrs/day
Entertainment and Games
News
On mobile platforms, users prefer downloading apps and using them as compared to the mobile Web.
The time spent by users on mobile platforms has been increasing significantly.
Among mobile apps, the number of users downloading messaging and social apps is increasing…
…And users are seen spending a large amount of their time on these apps.

4. cognizant reports 4
• Availability of pre-built capabilities that can
be leveraged with minimal customization:
The vast coverage of collaborative features
provided by messaging and social networking
apps enables insurance stakeholders to carry
out several mobile sales and servicing func-
tions effectively, as depicted in Figure 3.
Insurers can leverage these apps, either in
a stand-alone mode to listen and engage
with their stakeholders or they can integrate
them with their core systems and improve
outputs and efficiencies across sales, under-
writing, claims and policy servicing. Most of
these apps have a gateway API through which
insurers can integrate their back-end systems
and technology.
• Social and messaging apps, in many ways,
are less expensive to deploy and maintain
than mobile websites or even apps (see Fig-
ure 4, next page).
>> There is no necessity for developing a new
platform or any additional features; hence,
platform development costs are lower. These
apps are also compatible with different
mobile platforms and thus there is no need
in the last year; Tencent’s investment of $50
million in messaging app Kik; and even Twitter and
Facebook/Instagram both launching enhanced
messaging products last year.
Both social and messaging apps, in fact, have an
ever-increasing feature set that has contributed
to their success. Key features include the ability
to share text, audio/video messages/files, or
locations; facilitation of group conversations; and
the enabling of less expensive voice and video
calls (both one-to-one and conference calls).
How Insurers Can Apply Social
Networking and Messaging Apps
These digital platforms hold huge potential for
insurers. As app providers continuously expand
their services, they are increasingly advancing to
becoming an “alternative distribution channel”
or a “quasi-operating-system” for insurers. The
high penetration level of these apps, as indicated
in Figure 2, provides high immediacy and reach
for insurers. Apart from their reach, these apps
offer convincing business value propositions to
insurers, including:
RESEARCH &
INQUIRY
POLICY
QUOTE
QUOTE TO
POLICY
PREMIUM
PAYMENTS
POLICY
BINDING
CLAIM FNOL
CLAIM
NEGOTIATION
& CLOSURE
POLICY
SERVICING
CUSTOMER
SERVICE
CUSTOMER
ENGAGEMENT
Web Call
Center
Mobile
App
Social &
Messaging
LEGEND Sample touch point mapping Touch point mapping with social and messaging
• Audio/video/chat collaboration with agent to understand the
insurance features & coverages and to identify the appropriate
insurance product.
• Quick quotes through defined message codes (e.g., PS QUOTE
<Car make> <Car Model>).
• Receive quote proposal through file share.
• Collaboration to understand quote details, policy conditions,
coverages, policy exclusions, payment methods, etc.
• Submit a claim through audio/video/chat collaboration with CSR.
• Share incident images or video real time through file transfers
and video calls.
• Share claim incident location & receive service center
location/contact.
• GPS/location-based collaboration.
• Conference or group-based collaboration with multiple
stakeholders (claim adjustor, service provider, legal counsel,
etc.) during claims adjudication & negotiation.
• Receive real time alerts/notifications like renewal reminders, etc.
• Receive instant updates during exigencies.
• Raise service requests (enquiries, feedback, complaints) &
provide relevant information.
• Multimedia-based collaboration during servicing.
• Proactively engage on insurance-related, merriment,
company-related topics.
POLICY
QUOTE
NEWBUSINESSCLAIMSSERVICING
Elevating Customer Functionality Across the Lifecycle
Figure 3

5. to be integrated, and insurers are already col-
lecting these numbers as a part of new busi-
ness or servicing initiatives. Social networking,
however, requires the social handle and friend
acceptance from the user – which many insur-
ers are already seeking for other purposes,
such as giving discounts and value adds.
Shaping an Effective Digital Presence
Given the emergence of these channels, Insurers
must evaluate how to optimize their current
investments in mobile apps and portals.
The key ask for insurers is to analyze the relative
for any platform-specific development
approach.
>> These apps are already well adopted by
users and hence there is less branding cost
involved.
>> The platform and its features are managed
by the app vendors themselves and hence
maintenance costs are low.
• Social and messaging apps are much easier
to set up than mobile apps. They are not plat-
form-specific like mobile apps. Mobile messag-
ing apps require only the user’s mobile number
Cost Comparison Across Digital Tools
Figure 4
Insurance Industry Pioneers
It has been observed that a few insurers outside of the U.S. have already adopted messaging apps and
are seeing business success. Some examples are
• Jubilee Insurance, Kenya, has recently launched communications through WhatsApp.
2
• China Pacific Insurance has launched a WeChat service platform for both sales and customer service
functions, and allows payments through WeChat’s payment service.
3
• China Life is allowing customers to shop for both car and accident insurance on its WeChat account.
4
• Beijing-based Taikang Life Insurance launched a health insurance product for nominal cover on
WeChat.
5
• New China Life Insurance launched a brand-new customer loyalty program on the WeChat platform.
6
• Sunshine Insurance Company in China has launched crowdfunding for insurance services called “Love
Upgrading” on WeChat.
7
Almost all the insurers have a social profile and many are using it to engage with their customers to
enable transactions like quick quotes, agent locators, customer servicing, etc.
Moreover, social apps have also been adopted by the banking industry. Early adopters include:
• Kotak Mahindra Bank (India) has launched Hashtag Banking where users can send commands to their
bank account using hashtags on Twitter.
8
• ICICI Bank (India) also has enabled a hashtag-based kind of feature on Twitter for customers.
9
Quick Take
Mobile Website
Mobile App -
Single OS
Mobile App -
Multiple OS
Mobile Messaging
and Social
Networking Apps
Platform Costs Med Med High Low
Platform Maintenance Costs Med High High Low
Interfacing Technology Costs Med High High Med
Supporting People Costs Low Med High Med
Data Management Costs Med Med Med Med
App Branding Costs Low High High Low
cognizant reports 5

6. cognizant reports 6
will be those organizations that apply social and
messaging apps as a part of a holistic digital
strategy.
To successfully effect digital transformation,
insurers need to first have a robust business case,
a clear-cut digitalization strategy, a well-defined
roadmap and a continuous innovation initiative.
IT departments need to understand the difference
between executing a digital transformation
program vs. a traditional implementation, since
digital is evolving at an unpredictable pace. To
ensure digital sustenance, insurers must leverage
a focused, managed innovation approach that
emphasizes continuous discovery of new digital
opportunities and inculcation where applicable.
With the digital world embracing enhancements
at a rapid pace, it is up to the insurers to turn
this change into opportunities. Early realizers of
this will reap the greatest benefits compared to
laggards.
merits of the capabilities supported by different
channels across online, mobile, social and
messaging, map them to stakeholder needs and
craft a cost-effective integrated strategy for each
stakeholder group aligned to the overall business
and IT objectives of the insurer.
Figure 5 depicts a representative functional
decomposition across online channels based on
the costs/investment required and the complexity
of the transaction.
Looking Ahead: Enabling a Holistic and
Future-Proof Digital Strategy
Similar to the retail and hospitality industries,
insurers have recently realized the importance
and untapped potential of social and messaging
apps for enhancing customer experience. Thus,
to capture customer mindshare, those organiza-
tions that choose to ignore this trend risk being
left behind by progressive organizations that are
already dabbling with these apps. The winners
Functional Matrix Across Online Channels
Figure 5
MOBILE APPS OR SOCIAL APPS
ONLINE/MOBILE WEB
MESSAGING APPS
SOCIAL NETWORKING
COMPLEXITYOF
TRANSACTIONS
COSTS/ INVESTMENT REQUIRED
News and updates
Proactive risk
management info sharing
during exigencies
Real-time info
sharing with agents
Proactive risk
management info sharing
Customer engagement
Multimedia-based
claims FNOL
Multimedia-
based
risk
assessment
Life events, networks-based
up-selling , cross- selling
Business intelligence,
dashboards with
personalized features
like drill-downs, etc.
Policy buying
(e-application)
Complex financial
service requests
Gamifications
Product and service info
Tools like calculators,
presentation tools, etc.
Short-codes-based
quotes, service requests
Commission management
LOW
LOW HIGH
Location-based
dashboards
Alerts and
notifications
Customer service
Real-time collaboration
between stakeholders
HIGH

7. cognizant reports 7
Footnotes
1 http://blog.esurance.com/esurance-mobile-find-shops-and-services/
2 http://www.businessdailyafrica.com/Jubilee-adopts-WhatsApp-to-communicate-with-cli-
ents/-/1248928/2290590/-/w2pygl/-/index.html
3 http://www.huawei.com/en/publications/winwin-magazine/23/china-pacific-insurance-goes-digital
4 http://www.asiainsurancereview.com/News/View-NewsLetter-Article?id=28570Type=eDaily
5 http://www.scmp.com/news/china-insider/article/1441962/wechats-latest-viral-hit-china-health-
insurance
6 http://www.abnnewswire.net/press/en/78523/99_Wuxian_Ltd_(ASX:NNW)_Develops_Major_New_
Channel_to_Market_with_Chinese_Insurance_Companies.html
7 http://www.ecns.cn/cns-wire/2014/04-18/110134.shtml
8 http://www.latestnews360.com/readmore/29074/digital-news/Kotak%20Bank%20debuts%20
Hashtag%20Banking%20with%20its%20new%20social%20savings%20account.html
9 http://lighthouseinsights.in/icicibankpay-icici-banks-reply-to-kotaks-hashtagbanking.html/
References
• “Mobile Thought Leadership – Global,” FICO, 2013.
• “The rise of mobile messaging,” Magnet Forensics, 2013. https://www.magnetforensics.com/
wp-content/uploads/2014/02/MF_riseofmobile_infographic.pdf
• “Mobile Consumer Survey Results,” Adobe, 2013. http://empoweryou.ca/wp-content/uploads/2013/12/
Adobe-2013-Mobile-Consumer-Survey-Result.pdf
• “Leverage the Power of Mobile Technology to Innovate Your Retail Business,” SAP, September 2011.
http://fm.sap.com/data/UPLOAD/files/Leverage%20the%20Power%20of%20Mobile%20
Technology%20to%20Innovate%20Your%20Retail%20Business%20Solution%20Brief.pdf
• “FICO Global Survey reveals connected consumers want information and policy alerts from insurers,”
prnewswire.com, March 2014. http://www.prnewswire.com/news-releases/fico-global-survey-reveals-
connected-consumers-want-information-and-policy-alerts-from-insurers-249715971.html
• “Mobile adoption rate still low among insurance customers,” insurancetech.com, March 2014.
http://www.insurancetech.com/data-and-analytics/mobile-adoption-rate-still-low-among-insurance-
customers/d/d-id/1315104
• “Mobile use grows 115% in 2013, propelled by messaging apps,” Flurry Analytics, January 2014.
http://www.flurry.com/bid/103601/Mobile-Use-Grows-115-in-2013-Propelled-by-Messaging-Apps#
• “Most popular global mobile messenger apps as of March 2015, based on number of monthly active
users,” statista.com, March 2015. http://www.statista.com/statistics/258749/most-popular-global-
mobile-messenger-apps/
• “Mobile messaging apps becoming a trend,” inquirer.net, December 2013. http://technology.inquirer.
net/32301/mobile-messaging-apps-becoming-a-trend-says-fb-exec
• “A comeback for native mobile apps in insurance?” insurancetech.net, May 2013. http://www.insur-
ancetech.com/architecture-infrastructure/a-comeback-for-native-mobile-apps-in-ins/240154330
• “Gartner says less than 0.01 percent of customer mobile apps will be considered a financial success
by their developers though 2018,” gartner.com, January 2014. http://www.gartner.com/newsroom/
id/2648515
• “Internet retailers catching up with mobile messaging,” evigo.com, September 2014.
http://evigo.com/13590-study-internet-retailers-catching-mobile-messaging/
• “The surprising business model of OTT2 messaging apps,” visionmobile.com, April 2014.
http://www.visionmobile.com/blog/2014/04/the-surprising-business-model-of-ott2-messaging-apps/

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About the Authors
Abhishek Mishra is a Senior Manager – Consulting within Cognizant Business Consulting, with specific
focus on the insurance industry. He has executed several consulting engagements across process areas
for insurers throughout multiple geographies. Abhishek has also pursued primary research to leverage
mobility and social media enterprise-wide. He has a master’s degree in management from the Xavier
Institute of Management, Bhubaneswar (XIMB) and holds certifications from AICPCU. Abhishek can be
reached at Abhishek.Mishra3@cognizant.com.
Vinodh Stanley Stephen is a Consultant within Cognizant Business Consulting focused on the
insurance industry. He has extensively researched digital strategies for insurance carriers, especially
in developing markets. Vinodh has worked on conceptualizing several applications of emerging
digital technologies in the insurance value chain. He has a master’s degree in management from
the Institute for Financial Management and Research (IFMR) and a bachelor’s degree in engineering
from Anna University. Vinodh also holds certifications from AICPCU and CII. He can be reached at
Vinodhstanley.Stephen@cognizant.com.
Abinaya Silambaram Chandrabose is a Consultant within Cognizant Business Consulting focused on the
insurance industry. She has extensive business analysis experience in the property and casualty sector.
Abinaya has a master’s degree in management from Great Lakes Institute of Management (GLIM) and a
bachelor’s degree in engineering from Anna University. She holds certifications from AICPCU. Abinaya
can be reached at Abinaya.Chandrabose@cognizant.com.
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