Jan 26, 2020 | Updated: 03:54 PM EST

Mobile Meets Insurance

Apr 04, 2014 09:13 AM EDT

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According to Capgemini, a major challenge for insurers is providing a consistent, integrated customer experience leveraging traditional agent/broker relationships across emerging channels like mobile, web and social media. Mobile self-service applications for various functions such as quotes, policy renewals and claims processing let insurers offer customers a convenient and differentiated experience while reducing time to service. The report indicates that improving Efficiency Agents are not sufficiently enabled, leading to dissatisfaction and longer times to service customers. The addition of mobile channel can add to this complexity and inefficiency, if not well-designed.

U.S. economic pressures are vital to the health of an insurance organization’s survival. The impact of the economy on the insurance business impacts the entire consumer population which can greatly be affected by various economic factors. All population is affected, ranging from businesses, consumers, taxpayers and to employers. The insurance companies itself are also directly affected.

The insurance business and U.S. economy have recently held many pressures nationwide. Companies in this sector and the entire industry are impacted from economic downsides. Insurance firms have to adjust according to economic conditions to areas such as collecting premiums from its customers, paying taxes and having to deal with various issues of concern. The state insurance companies affect the entire state’s economy as well. Property loss also affects the state population significantly. The insurance industry has had major impact to its state because of the power of it offering financial protection.

The economic concerns are significant in contributing to the outcome of gross state product revenues. The insurance industry pays high tax rates and invests in various bonds for the state. The percentage rates make up a great portion to gross state product. During the economic crisis in 2008, property insured losses reached to the billions in some states. Life insurance and other claims also reached up to billions.

"Insurers need to invest in Mobile as a Channel to leverage Integrated Multi-Distribution Strategies. 73 percent of Insurers will offer mobile claims servicing capability in the next two years and 52 percent of Insurers will offer policy changes via mobile" states the World Insurance Report.

Today, the insurance industry is more sensitive to economic recovery and its nationwide exposure making the industry vulnerable to any significant downturn in the global economy. Insurance companies collapsed badly during the financial crisis. Insurance companies are considered to be for the most part, efficiently run, but it can't overcome weakness in its core demographics and economic factors.  The delay in consumer payments, increased claims and increasing of premiums has affected their business.  Present economic success for insurance can be due to unprecedented demand. 

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