How mobile is transforming insurance

A report from The Economist Intelligence Unit
How mobile is transforming insurance
From protector to partner: Can mobile expand
insurers’ relationships with consumers?

© The Economist Intelligence Unit Limited 20141
Preface 2
Introduction 4
How open to mobile are the insured? 5
Insurer capabilities and success stories 9
The changing insurer-agent relationship 11
Customer loyalty 13
Conclusion 16
Appendix: Executive survey results 17
Appendix: Consumer survey results 24
Contents
1
2
3
4
5

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 do 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.
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

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 one-
quarter (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
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 one-
fifth (19%) came from North America, 19% from
Latin America, 23% from EMEA, 26% from Asia-
Pacific 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.
About the surveys

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.
Introduction
1
Source: Economist Intelligence Unit survey, September 2014.
North America
Latin America
Middle and Eastern Europe
Asia
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)
79
68
61
55

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 do connect, the interaction rarely takes
place on a mobile device. Only 26% of consumers
have ever connected with their insurer via mobile.
When they do 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
How open to mobile are the insured?
2
North America
Latin America
EMEA
Asia
North America
Latin America
EMEA
Asia
North America
Latin America
EMEA
Asia
Percentage of insurance customers who have used mobile technologies to connect with their insurers, by region
(% of consumer respondents)
Shop for or compare policies
Locate third-party service providers
(eg, authorized repair centres, physicians)
Receive alerts
(eg, expiration and renewal)
Pay premiums and see payment history Update policy and personal data
Research or purchase other financial
services (eg, banking, mortgage, legal)
Access proof of insurance, check policy
Review risk level
(eg, health check)
File claims and check claim history
and status
21
23
26
28
23
29
27
25
17
30
23
24
21
21
20
24
13
23
16
20
16
23
22
20
17
19
15
19
10
14
8
15
13
16
12
14

say they would use mobile to bank if it were easy
and safe, while 26% would not.
Of those consumers who do 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 do 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 do 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
Insurers and
consumers are
somewhat at odds
in their attitudes
towards data
collection.
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
Social media
Location data (eg, GPS)
Connected devices (eg, automobile
sensors, smoke detectors, security systems)
Wearables (eg, Fitbit)
Other personal or behavioural data
83
82
81
77
75
86

❛❛
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
Asia EMEA Latin America MEE North America
Personalise products and services
Strongly concerned
Moderately concerned
Minimally concerned
Not at all concerned
Discourage risky behaviour
Strongly concerned
Minimally concerned
Encourage healthy behaviour
Strongly concerned
Minimally concerned
How concerned are you about your insurer collecting and using your personal information to—
31 26 35 26 26
41 46 41 42 36
20 19 15 24 26
8 9 9 7 12
28 24 34 27 24
43 40 40 39 36
21 25 20 24 26
8 10 6 10 14
27 22 27 24 24
39 39 37 37 30
23 27 25 27 30
11 13 12 12 16
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
do 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?
Have done Would like to do
Manage my and my family’s health
Manage my personal assets
and related risks
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
52
34
36
48
27
50
25
53
24
54

“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 auto-
insurance 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—
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.”

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 decision-
making 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
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
Insurer capabilities and success stories
3
Insurers need to
provide customers
with digital
pathways that
make decision-
making 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.”
Neff Hudson,
emerging channels executive
at USAA

and distributors called ZONE, an iPad-optimised
app that enables financial advisors and credit-
union 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 an auto dealer to
purchase a vehicle. “Credit unions have generated
over $1bn in loans, and we have been able to offer
members credit-insurance options to protect their
debt,” Mr Roy says.
The company has also implemented a bring-
your-own-device policy for its associates. “We still
have corporate devices, but we allow employees
choice,” he explains. “We want our employees
using the same technology our customers are
using, which helps us understand devices better
and gives us ideas on opportunities to use mobile.”
Combined Insurance, a Chicago-based global
provider of supplemental insurance, recently
undertook a sales-enhancement programme to
increase adoption of mobile capabilities by its US
agents and eliminate inefficient paper-based
processes. “We selected the iPad as the mobile
device to enhance agent productivity and provide
for electronic submission of applications and other
documentation,” says Seamus Fitzpatrick, the
company’s senior vice-president for mobile sales
technology integration. “Our goal was to boost
sales by improving efficiencies of sales agents,
field management and back-office operations.”
Now sales agents and marketing field personnel
have electronic versions of sales presentation
materials, up-to-date underwriting guidelines and
other frequently used documents that they can use
both online and offline. More than 200 agents are
enrolled and active users, and the company has
seen significant improvement in speed-of-business
and policy-issue rates and more timely payments,
according to Mr Fitzpatrick.

To the extent that mobile brings insurers closer to
policyholders, it raises the spectre of
“disintermediation”—a direct business model that
takes intermediaries, such as agents, out of
transactions—a model that has already been
realised to a significant extent in personal lines
property insurance and some types of individual
life insurance.
More direct sales are likely as insurers offer
convenient transactions and services via mobile.
Two-thirds (67%) of insurance executives surveyed
by the EIU agree that consumers expect insurers to
provide mobile services with the same
personalisation and ease-of-use provided by retail
giants and trendsetters such as Amazon.com. Only
12% believe that they can get away with services
below this standard.
Two-thirds (66%) of executives see mobile as
suitable for simple activities, such as ordering ID
cards or contacting customer service, but believe
mobile is inadequate as a platform for explaining
the complexity of insurance products or properly
documenting insurance transactions—a belief
belied by the experiences of industry leaders USAA
and CUNA Mutual. Only 13% agree with the concept
that mobile devices can handle the complexity of
the insurer-insured relationship.
Whether sales are direct or mediated, mobile
will become important for both learning about
insurance products and buying them. Consumers
currently access many channels for these purposes,
including brokers and agents, aggregators, insurer
websites, call centres, mobile devices, social media
and word-of-mouth recommendations. None will
disappear, but their roles will shift as mobile
matures.
Today, eight out of ten executives say that
customers primarily reach insurers through brokers
and agents. In five years’ time, mobile and social
will take on bigger roles. Indeed, mobile will rise to
the top, though it will not dominate in an
omnichannel distribution model. Customers will
likely use many channels, for example, speaking to
an agent, browsing a website, seeing a story on
social media and using a price-comparison app—
perhaps all at the same time.
Yet only one-quarter of insurance executives say
their companies currently have an integrated,
omnichannel strategy. This will soon change:
almost six in 10 (58%) say that five years from now
all channels will be managed through an
integrated set of processes.
Mobile’s implications for direct selling go
beyond a question of distribution to include
product innovation and custom markets. For
example, Japanese insurer Tokio Marine & Nichido
Fire (TMNF) offers “One-Time Insurance” products
in partnership with Japanese telecom company NTT
Docomo. The products, which can be purchased
anytime and anywhere via mobile devices, cover
potential risks from sporadic and short-term
events.
Policyholders can buy coverage casually
whenever they feel the need, says Michael
The changing insurer-agent
relationship4
More direct sales
are likely as
insurers offer
convenient
transactions and
services via
mobile.

Fitzgerald, a senior analyst at research firm Celent.
“One-Time Insurance aims to cultivate the
untapped market for small-amount, short-term
insurance and attract a new customer segment that
typically does not have an interest in insurance.”
TMNF maintains that One-Time Insurance
products do not conflict with current distribution
channels because the premium amounts are too
small to interest agents. Premiums start at ¥300
(about $2.50).
The One-Time Insurance programme uses
Docomo customers’ smartphone GPS functionality
to make location-specific insurance
recommendations. For example, it recommends
travel insurance at airports, golf insurance at golf
courses and sports and leisure insurance at ski
resorts, according to Mr Fitzgerald. The system can
differentiate between a user’s place of work and a
location that the user is merely visiting, thus
avoiding redundant recommendations.
Since the debut of One-Time Insurance in 2010,
TMNF has released new product lines, some which
involve data-sharing. For example, an inexpensive
medical-insurance product features a health-
promotion programme that uses a policyholder’s
mobile device to monitor steps walked or miles
run. Policyholders can use points won to purchase
Docomo products. An auto-insurance product
aimed at those who have a driver’s license but do
not own a vehicle provides damage coverage for as
little as ¥500 or ¥1,000 a day.
TMNF and Docomo Healthcare also offer a
service called “How My Body Feels” designed to
promote wellness and the taking of preventive
measures among women. Using a smartphone and
connected thermometer, Docomo Healthcare
monitors users’ daily body temperatures and other
health data; if it detects symptoms of disease, it
alerts them to strongly consider a visit to their
doctor. Women who receive a diagnosis from a
doctor receive money to help cover the cost of the
visit. The companies say they have found a novel
way to boost prevention, thus reducing overall
healthcare costs, boosting customer loyalty and
attracting new customers.
TMNF’s mobile successes are partly attributable
to strong mobile demand among Japanese
customers, says Mr Fitzgerald. Indeed, Asia could
be a bellwether for mobile insurance
developments. “Because of the difference in
privacy concerns and the advanced adoption of
mobile by consumers in the region, Asian insurers
can lead the way for the rest of the world in
unlocking digital value for insurers,” he says.
❛❛
Because of the
difference in
privacy concerns
and the advanced
adoption of
mobile by
consumers in the
region, Asian
insurers can lead
the way for the
rest of the world
in unlocking
digital value for
insurers.
❜❜
Michael Fitzgerald,
a senior analyst at research
firm Celent

Given that mobility increases customer knowledge
and convenience, insurers have legitimate
concerns about it also increasing customer
attrition. A significant proportion of executives
(38%) fear that the proliferation of mobile services
will increase customer churn. Half of respondents
who fear increased attrition (48%) also believe
that mobile will exacerbate the trend towards
commoditisation of basic insurance services.
One-third (31%) say mobile will remove barriers to
entry for potential competitors, especially on the
distribution side where aggregators have already
increased customer churn.
However, about one-quarter (23%) of
respondents believe the opposite: that mobile will
reduce attrition. They base their opinion on a
Customer loyalty
5
How will the migration of customers to mobile technologies affect customer attrition (eg, churn, defection to competitors)?
(% of executives)
Why will attrition decline?
Insurers will have more ways to
differentiate themselves
Greater efficiency will allow insurers
to lower costs for customers
Insurers will gain scope for personalisation
using customer data
Insurers will gain scope to
address niche markets
Many customers will prefer self-service
over interacting with personnel
Insurers will get better at predicting which customers
are likely to leave and making offers to get them to stay
Insurers will offer advisory services,
becoming more than just insurance suppliers
Insurers will be able to build loyalty
by providing innovative features
Managing and renewing insurance
will become easier and faster
Why will attrition rise?
Human interaction will decrease
Security concerns will increase
Barriers to market entry will fall,
leading to more new providers
Basic insurance services will
become even more commoditised
Switching to new providers
will become easier
31
38
38
38
38
42
46
54
58
24
24
31
48
81

number of factors, especially the idea that mobile
makes it easier for customers to manage their
insurance (58%). If an update or renewal is
required, a customer can act instantly from any
location.
Insurers plan to expand the mobile features and
services they offer policyholders over the next
three to five years, according to the executive
survey.
Cigna, of Bloomfield, Connecticut, has
incorporated wearable technology into the various
services it offers, including Cigna Health Matters, a
suite of health-coaching tools that uses mobile,
online, social media and gamification technologies
that is designed to help employer health-plan
customers set and meet health goals.
“Cigna Health Matters integrates the latest
insights and practices of the sociology of
engagement, motivation and rewarding behaviour
change with the latest health tools and
technology,” says Eric Herbek, vice-president of
product development for Cigna’s Consumer Health
Engagement unit.
Cigna’s vision involves the “instrumentation of
the individual”, or the use of wearable devices that
collect and transmit medically relevant
information. For example, a device could help a
diabetic monitor blood glucose levels and share
those readings with a health coach who helps
co-ordinate dietary adjustments. Transmission of
this personal information is anonymised to protect
an individual’s privacy, says Mark Boxer , the
insurer’s executive vice-president and global CIO.
The insurer has formed an exclusive alliance
with Samsung as a co-developer of the S-Health
platform for the manufacturer’s smart devices.
S-Health enables users to track health statistics,
such as blood pressure, glucose levels and weight,
as well as environmental conditions and details of
an individual’s exercise programme.
Perhaps within five years, consumers will have
the option to use implanted devices to transmit
accurate readings on important physiological
factors like blood glucose levels, heart rate and
blood pressure, says Kevin Murray, group chief
operating officer and CIO for the UK unit of AXA, a
French financial-services firm. However,
consumers’ willingness to adopt such devices and
share these data will require clear value in return,
for example, useful 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
Which mobile features can your customers currently use, and which do your company expect to support five years from now?
Please select all that apply in each column.
(% of executives) Now Five years from now
Access and manage accounts,
ID cards, policy documents
Purchase and manage policies,
pay premiums
Document and provide information about
properties and assets, damages; file claims
Locate third-party support partners
(authorised service/repair centres, healthcare providers)
Submit and update documents
(eg, via device-based cameras)
Access customer-service representatives
via email, text message and social media
Access personalised risk-management tools
(eg, via mobile-data analytics)
Receive personalised information and/or offers on products, prices,
agents, brokers (eg, based on behaviours, preferences, history, location)
Receive personalised recommendations about risky
and healthy behaviour (eg, lifestyle, health, driving)
Receive, view and share information with insurance
companies via sensors (eg, in cars and wearables)
68
42
51
45
46
44
41
42
34
46
52
45
25
49
45
48
37
44
38
48
❛❛
Devices that can
respond to vocal
commands will
break the
threshold of
confidence for
many consumers.
❜❜
Kevin Murray,
group chief operating officer
of AXA

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
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.”

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 do business.
For consumers, agents, prospects and even
internal associates, mobile is rapidly becoming the
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.
Conclusion
Mobile will drive a
significant
improvement in
the insurer-
customer
relationship.

Appendix:
Executive
survey
results
Percentages may not
add to 100% owing to
rounding or the ability
of respondents to
choose multiple
responses.
90
52
42
70
63
47
45
53
53
71
49
43
31
66
64
16
67
47
55
33
40
Brokers, agents
PC to access your website
PC to access an aggregator’s website
Call centre
Mobile devices
Social media
Other customers/word-of-mouth
How do 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
PC to access an aggregator’s website
Call centre
Mobile devices
Social media
Other customers/word-of-mouth
Transaction channel: Purchase insurance products
90
51
44
66
63
34
41
52
46
68
34
38
29
60
62
19
59
67
60
35
43

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.
Each of the channels is
managed separately
Some are integrated, but not all
All channels are integrated (ie, we
have “omnichannel” capabilities)
38
23
24
38
51
18
24
26
58
At your organisation, which of the following stakeholders use custom mobile technologies today?
Which do you believe will use them three years from now?
Stakeholder
Policyholders
Prospective customers
Front-office employees (eg, customer support including
customer-facing aspects of sales and claims)
Middle office employees (eg, product, policy,
middle-office aspects of sales and claims)
Back-office employees
(eg, finance, risk, regulation, administration)
Third-party sales partners
(eg, agents, brokers)
Third-party support partners (eg, adjusters, claims specialists,
authorised service and repair shops, healthcare providers, pharmacists)
70
60
47
52
70
45
51
51
54
45
58
47
41
49
53
44
61
61
46
53
58
Which mobile features can your customers currently use, and which do your company expect to support three years from now?
Mobile feature
Access and manage accounts, ID cards, policy documents
Purchase and manage policies, pay premiums
Document and provide information about
properties and assets, damages; file claims
Locate third-party support partners
(authorised service/repair centres, healthcare providers)
Submit and update documents
(eg, via device-based cameras)
Access customer-service representatives via email,
text message and social media
Access personalised risk-management tools
(eg, via mobile-data analytics)
Receive personalised information and/or offers on products, prices,
agents, brokers (eg, based on behaviours, preferences, history, location)
Receive personalised recommendations about risky
and healthy behaviour (eg, lifestyle, health, driving)
Receive, view and share information with insurance
companies via sensors (eg, in cars and wearables)
68
47
42
51
61
45
46
55
44
41
67
42
34
60
46
52
55
45
25
64
49
45
49
48
37
53
44
38
42
48

What types and sources of personal mobile data from policyholders does your organisation currently collect?
What will it collect in the future?
Data type
Social media
Wearables
Connected devices (eg, automobile sensors,
smoke detectors, security systems)
52
47
47
60
59
39
43
51
48
60
53
46
24
49
61
34
48
52
We do this now
We plan to do this within the next three years
We will not do this within the next three years
Do you collect mobile data relevant to the level of risk in the policies you underwrite
(eg, health indicators, driving habits, property status)?
(% respondents)
32
33
35
Assess risk
Recommend relevant products / services
Change behaviour and reduce risk
Extend discounts
Don’t know
We use or plan to use this data to:
(% respondents)
48
25
22
4
1
Personalised service
How do 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
32 25 20 13 11
15 39 17 13 16
11 25 25 19 20

Mobile is fine for simple tasks, but agents are necessary to facilitate conversations, personally engage customers and explain complex products
Consumers expect mobile services from insurance companies to offer the same personalisation and ease of use as those of popular shopping sites
Mobile provides a new set of capabilities and has a business-changing potential that other channels lack
Mobile is just one channel, no more important than any other
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
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)
We have invested in games or game-like experiences on mobile devices to engage consumers or educate them about less risky behaviours
Please indicate the extent to which you agree or disagree with the following statements about mobile services.
(% respondents)
Strongly agree Somewhat
agree
Neither agree
nor disagree
Somewhat
disagree
Strongly
disagree
Don’t know
38 28 19 12 1 4
29 38 19 8 4 3
28 34 29 6 1 3
13 23 28 25 7 4
29 29 24 9 6 3
15 38 22 11 7 6
18 14 24 16 19 9
Attrition will rise
Attrition will decline
Not sure
How will the migration of customers to mobile technologies affect customer attrition (eg, churn, defection to competitors)?
(% respondents)
38
23
39
Barriers to market entry will fall, leading to more new providers
Switching to new providers will become easier
Basic insurance services will become even more commoditised
Human interaction will decrease
Security concerns will increase
Why do you believe attrition will rise?
Please select all that apply.
(% respondents)
31
81
48
24
24

Managing and renewing insurance will become easier and faster
Insurers will have more ways to differentiate themselves
Insurers will gain scope for personalisation using customer data
“Insurers will gain scope to address niche markets”
Insurers will be able to build loyalty by providing innovative features
Insurers will offer advisory services, becoming more than just insurance suppliers
Insurers will get better at predicting which customers are likely to leave and making offers to get them to stay
Greater efﬁciency will allow insurers to lower costs for customers
Many customers will prefer self-service over interacting with personnel
Why do you believe attrition will decline?
(% respondents)
58
31
38
38
54
46
42
38
38
Your company’s business model
The way employees at your company work (ie, increased emphasis on data analysis and decision-making)
The data your company collects, analyses and uses
How your company’s employees engage customers
How your company engages customers with self-service capabilities
In your opinion, to what extent is the growing adoption of mobile technology changing the following?
(% respondents)
Strongly Moderately Slightly Not at all Don’t know
35 29 25 4 7
25 36 26 7 6
28 35 26 4 7
28 35 26 4 8
32 33 20 6 9
In your opinion, which cost areas do mobile technologies have the greatest potential to minimise now and in the future?
Please select the top two in each column.
(% respondents) Now Three years from now
Selling insurance policies
Providing and receiving information
(eg, documents, news)
Claims processing
Renewing policies
Providing advice and support
75
44
65
57
54
67
46
63
47
63

$500m or less
$500m to $1bn
$1bn to $5bn
$5bn to $10bn
$10bn or more
What are your organisation’s global annual revenues in
US dollars?
(% respondents)
8
17
27
19
29
Board member
CEO/President/Managing director
CFO/Treasurer/Comptroller
CIO/Technology director
Chief actuary officer/Head of actuary
Chief underwriting officer
Chief risk officer
Other C-level executive
SVP/VP/Director
Head of Claims
Head of Compliance
Head of Business Unit
Head of Department
Manager
Other
Which of the following best describes your title?
(% respondents)
9
7
3
12
3
5
4
16
5
1
1
2
10
23
1
Customer service
General management
Marketing and sales
Strategy and business development
IT
Actuary
Finance
Underwriting
Other
Compliance
Risk
Information and research
Human resources
Portfolio management
Legal
Regulatory
R&D
What are your main functional roles?
Select no more than three.
(% respondents)
21
20
19
17
13
12
12
12
10
9
8
7
5
5
4
3
2
Middle and Eastern Europe
North America
EMEA
Latin America
Asia
In which region are you based?
(Number of respondents)
24
24
23
22
20
Property and casualty insurance (including auto, home)
Life insurance
Health insurance
What is your primary industry?
Select all that apply.
(% respondents)
70
36
22
Individual life
Group life
Annuities
Other life insurance
Life insurance
(% respondents)
88
61
61
10

Personal lines
Small commercial
Large commercial
Other P&C insurance
Property & casualty insurance
(% respondents)
72
54
48
18
Individual
Group
Health insurance
(% respondents)
88
76
Yes
No
Are you familiar with mobile technology trends in insurance?
(% respondents)
100
0
United States
United Kingdom
Brazil
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)
In which country/region are you personally based?
(% respondents)
19
15
14
8
5
4
3
2
1
Under 5,000
5,000 to 10,000
10,000 to 20,000
20,000 to 40,000
40,000 to 70,000
70,000 to 100,000
Over 100,000
Approximately how many consumer accounts does your
company have?
(% respondents)
4
12
11
13
4
4
52

Appendix:
Consumer
survey
results
Percentages may not
add to 100% owing to
rounding or the ability
of respondents to
choose multiple
responses.
Daily
Weekly
Monthly
Quarterly
Every six months
Yearly
Less than once a year
How often do you estimate you interact with your insurance(s) providers?
(% respondents)
3
4
10
12
18
36
17
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
Purchasing policies and making payments
Managing accounts and updating policies (eg, adding family members, new property)
Filing, managing and tracking claims
Finding third-party service providers (eg, repair centres, rental cars or equipment, healthcare providers)
Getting personalised advice on managing my health and/or property risks
What is your preferred method for performing the following tasks?
(% respondents)
27 56 6 1 9
33 50 7 3 7
27 49 9 3 12
29 42 9 4 15
20 47 15 1 17
38 29 8 2 23

I have used my mobile
device to do this
I have not used my mobile
device to do this but would
be willing to
I have not used my mobile
device to do this and would
not be willing to
Don’t know
Shop for or compare policies
Locate third-party service providers (eg, authorized repair centres, physicians)
Research or purchase other financial services (eg, banking, mortgage, legal)
Pay premiums and see payment history
Access proof of insurance, check policy
Receive alerts (eg, expiration and renewal)
Update policy and personal data
File claims and check claim history and status
Review your risk level (eg, health check)
Have you used your mobile device to do any of the following activities?
(% respondents)
Mobile feature
24 40 28 7
26 44 22 8
20 41 30 9
21 44 28 7
17 51 24 8
23 49 21 7
18 48 28 7
13 49 29 9
11 49 28 12
There is no agent or office where I live
I do not want to visit an agent or office
I can deal with my insurer any time I want
I can deal with my insurer any place I want
I do not have to wait for service (eg, on a line)
Easy access to records of my transactions
Easy access to personalised information in one place
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
Other
What are your top reasons for using a mobile device to interact with your insurance providers?
Please select the top three.
(% respondents)
15
37
60
35
41
31
19
5
5
13
1
Yes
No
If you could interact with your insurer(s) using your mobile device easily and safely, would you interact with them more often?
(% respondents)
61
39

Strongly concerned Moderately concerned Minimally concerned Not at all concerned
Personalisation of products and services
How concerned are you about your insurer collecting and using your personal information (ie, data about your location and
habits) for the following purposes?
(% respondents)
29 41 21 9
27 40 23 10
25 37 26 13
Very concerned Somewhat concerned Not at all concerned
Social media
Wearables (eg, Fitbit)
Connected devices (eg, automobile sensors, smoke detectors, security systems)
How concerned are you about your insurer collecting and using the following types of data?
(% respondents)
41 40 19
40 42 17
43 43 14
36 47 17
32 43 25
33 44 24
Get advice on managing my health and that of my family
Get advice on managing my personal assets and related risks (eg, property, auto, estate, will)
Get legal advice and/or services
View driving history and get advice on managing driving risks and auto premium costs
View home fire and surveillance data and get advice on related risks and premium costs
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.
(% respondents)
52
36
27
25
24
Get advice on managing my health and that of my family
Get advice on managing my personal assets and related risks (eg, property, auto, estate, will)
Get legal advice and/or services
View driving history and get advice on managing driving risks and auto premium costs
View home fire and surveillance data and get advice on related risks and premium costs
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 do.
(% respondents)
34
48
50
53
54

Much more satisfied with my mobile experience than my desktop experience
Somewhat more satisfied with my mobile experience than my desktop experience
I have about the same level of satisfaction with my mobile experience as my desktop experience
Somewhat less satisfied with my mobile experience than my desktop experience
Much less satisfied with my mobile experience than my desktop experience
Overall when it comes to dealing with insurance, how satisfied are you with your mobile experience relative
to your desktop experience?
(% respondents)
8
15
33
22
23
US
Brazil, Canada, China, France, Japan, Mexico, UK
Australia, Germany, India
Africa, Argentina, Colombia, Indonesia, Middle East/North Africa,
Russia, Singapore, Switzerland
Austria, Czech Republic, Poland, Spain
Italy
In what country do you live?
(% respondents)
13
6
4
3
2
1
Feature phone (ie, a basic phone for calls and texts, sometimes
with simple games and Internet capabilities)
Smartphone (eg, iPhone, Android, Windows Phone, BlackBerry)
Tablet
I do not use a mobile device
What kind of mobile device do you use?
(% respondents)
22
86
47
0
Yes
No
Do you use a bank to handle personal financial matters?
(Note: A bank would provide you with a savings and/or
checking account.)
(% respondents)
100
0
Yes
No
Do you have one or more insurance policies (eg, health, life,
disability, auto, renters, homeowners)?
(% respondents)
100
0
Asia-Pacific
EMEA
Latin America
North America
MEE
Embedded Data Field: Region
(% respondents)
26
23
19
19
14

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.
Cover:©JoseLuisPelaezInc/BlendImages/Corbis
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
report at sap.com/insurance

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