Consumers want policy info through mobile devices, email but insurers not keeping up

More than half of consumers included in a new survey say they want certain insurance policy information available through either email or smartphones, but most insurance providers are behind on delivering useful information through mobile technology.

In the global survey from predictive analytics firm FICO, 55% of consumers said they want policy renewal reminders delivered via email or smartphone, and 52% said they are interested in alerts regarding changes in their policy.

The survey included 2,239 adult smartphone users in the United Kingdom, Australia, Brazil, China, France, Germany, India, Italy, Japan, Korea, Mexico, Russia, Turkey and the United States.

However, only 40% of those surveyed said they trust their insurance providers with personal data, according to FICO.

“The mobile phone is a tool of convenience, but it’s also intensely personal,” Russ Schreiber, who manages FICO’s insurance practice, said in a press release.

“People like to have information and control at their fingertips. With emerging mobile technology, it’s possible for insurance providers to deliver what their customers want – for example, to develop apps that send alerts as well as allowing more routine interactions like policy renewal.”

Perhaps unsurprisingly, younger consumers are the ones more interested in information via mobile apps, text messages and social media. Those ages 18 to 24 felt a text (16%) from their insurer would be most convenient, which was nearly twice the rate of the 40 to 54 demographic.

People over 40 still prefer to receive notifications on insurance renewals via email (43%) or by mail (32%).

“While not everyone has started using mobile devices to interact with their insurance providers, those who do report a significant increase in customer satisfaction,” Schreiber noted.

“For example, alerts that keep customers up-to-date on their claims are growing. Insurers that create this type of dialogue receive higher recommendation ratings, which often lead to improved sales. Mobile is a way to be more present and remind the customer why their insurance is valuable.”

FICO notes that the most advanced companies are delivering relevant and useful information to customers, such as helpful tips on safety and property protection delivered during severe weather events; useful guides that show customers how to do things like change a tire on their car; and location-aware apps that deliver active recommendations such as travel insurance when you enter an airport.

However, mobile communication is still underused by insurers, FICO says. In its survey, 65% of consumers reported never using their smartphone to manage or interact with their insurer, and only 9% said they have managed their policy using their smartphone.

“While many insurance firms have built mobile applications, consumer usage is fairly low, as the function of these apps is typically limited to filing a claim or renewing a policy,” Schreiber said.

“However, thanks to analytic technology, insurance providers have new opportunities to tailor services to individual customers, strengthen loyalty, and ultimately, sell more.”