Recently The Economist Intelligence Unit published some new research about how mobile technologies are transforming the insurance market and it makes very interesting reading indeed. Please see my prior post on this topic here.
In the past the insurance industry hasn’t been known for being particularly innovative with technology, but it seems that times are changing. Globally the percentage of executives who agree that mobile provides a new set of capabilities and has a business changing-potential that other channels lack is 62%. And in North America the percentage is even higher at 79%.
And it seems executives are backing their opinions with investments. There are plenty of examples in the report of how mobile technologies are enabling insurers to reach current and potential customers in new ways with new offerings.
For example, one enterprising insurer is offering location-specific, low cost, short-term insurance products through the local mobile network provider. Users receive recommendations for travel insurance at airports, golf insurance at golf clubs, and sports and leisure insurance at ski locations. And premiums are low, starting from as little as $2.50.
Another insurer has formed an alliance with a manufacturer of smart devices to track health statistics such as blood pressure, glucose levels, and weight, as well as environmental conditions and details of an individual’s exercise program.
Yet a third is doing away with paper-based vehicle insurance policies and putting the whole policy on customers’ phones. With a driver’s permission it enables the company to use GPS to send help in the event of a breakdown and coach policy holders on driver safety.
New developments like these prove that insurers are throwing off their conservative shackles. As they do they will move from simply providing protection for policy holders, to becoming trusted partners who deliver services that are useful to people in their everyday lives.
Read the full EIU report here and please share your thoughts.