From December 2009 Resource

Insurance Going Mobile
More and more insurance companies are seeing the benefits of mobile applications. See what new innovative apps some leading companies have launched.

By Tammy McInturff Appel

It has been a tough year for most companies. The recession in the U.S. has lead to many changes as companies search for ways to cut spending and increase efficiency. And although the economy will probably feel weak for some time, there is good news as Federal Reserve Chairman Ben Bernanke has said that the recession is ‘very likely over.’ As the economy improves many companies will begin to bolster their IT budgets. One area they may consider investing in is mobile applications. In fact, several companies have recently released new cutting-edge mobile applications despite the weak U.S. economy.

Mobile device usage in the industry has continued to grow over the last few years. So it is no surprise that insurance companies are increasingly looking to mobile applications to make it easier for consumers and agents to conduct business with them. Mobile apps can help agents serve customers and potential policyholders faster and more efficiently. These apps can be a great differentiator, helping companies not only retain and recruit customers but agents as well. Today’s mobile apps can do everything from allowing a customer to deposit a check to estimating the value of one’s life. In today’s competitive marketplace, as more companies develop successful mobile applications, we will likely continue to see more and more innovative applications being developed.

USAA recently released its new, cutting-edge Deposit@Mobile^™. This feature takes branchless banking further on the iPhone^™ USAA, a diversified financial services group of companies, is among the leading providers of financial planning, insurance, investments, and banking products to members of the U.S. military and their families.

Deposit@Mobile™ is the first mobile deposit capability for the iPhone, meaning qualifying banking members can now use their iPhones to deposit a check from ball fields, PTA meetings, neighborhood gatherings, or anywhere else they can get a wireless signal.

According to the company, the new USAA Deposit@Mobile feature, available on the company’s popular USAA Mobile App for the iPhone is secure and simple to use. Eligible members can snap a photo of both sides of a signed check with their iPhone’s built-in camera, and then transmit the image to USAA through the phone. USAA systems immediately verify the deposit information and signature to complete the transaction.

The new capability builds on USAA’s Deposit@Home^® service, introduced in 2006, which lets qualifying members scan and deposit checks using their home computer and scanner. In most cases, deposits are immediately available for use.

"Our members are on-the-go and need to be able to manage their accounts at all times, from any location," said Wayne Peacock, USAA’s executive vice president of enterprise business operations. "Nearly 50 percent of our one million mobile users are active-duty military, who may be deployed anywhere. The convenience of mobile access is essential to delivering the highest possible level of customer service."

USAA Deposit@Mobile is the latest enhancement to the USAA Mobile App for the iPhone, launched in May, which enables qualifying USAA members to manage insurance, investment and bank accounts on a single, safe and secure platform. The feature-rich, four-star-rated app is free, and has been downloaded nearly 140,000 times from Apple’s
iTunes store.

In addition to the robust USAA Mobile App, USAA also offers its members the ability to access account information and transact business via SMS text messaging, a mobile banking application and its mobile Web site, mobile.usaa.com. USAA members can request auto insurance ID cards, place stock trades, transfer funds and much more using USAA’s mobile services. Approximately 14 percent of USAA’s 7.2 million members interact seamlessly with USAA via their mobile devices.

"USAA members are embracing the mobile channel at a very fast pace, saving themselves significant time and energy," Peacock said.

"USAA is investing in next-generation technology to consistently deliver a seamless, cross-channel customer service experience," said Peacock. "We look forward to expanding our mobile services to other open platforms like BlackBerry^®, Google’s Android devices and to expanding our capabilities to help members manage their finances wherever life—or duty—takes them."

New York Life’s Enhanced
Web Mobility

New York Life is one of the first insurers to offer online visitors enhanced mobile access. The company announced that several of its Web-based offerings are now available on more than 700 models or over 98 percent of cell phones and handheld mobile devices. New York Life Web content, including the company’s rich educational content and the ability to connect with, or become, an agent is now available on virtually every type of mobile device.

"Mobile devices have become an indispensable part of consumers’ lives and as a result mobile technology is fast becoming a top customer request. With over 6,000 mobile visitors per month, it is clear that optimizing our online offerings for all these devices is meeting the needs of our customers and potential customers," said Kenneth Hittel, vice president of the Corporate Internet Department at New York Life. "We are pleased to be one of the first insurers to offer this convenience, and combined with the Web 2.0 features New York Life launched last year, we believe we are creating the most value for our Web visitors."

According to the company, New York Life’s mobile service now offers consumers the ability to find information on a range of financial products and their features, including research findings on insurance amounts and achieving financial goals such as securing retirement income and leaving an inheritance. It also allows customers the ability to connect directly with the "Click-to-Call" feature and speak with a service representative on a range of New York Life insurance, annuity, and long-term care insurance products, including those available through AARP. Further, consumers can find a New York Life office or agent by name, address, city, state, or zip code, call one directly with the "Click-to-Call" feature, or use a form to request a consultation; and learn how to become a New York Life agent and apply online with a short and convenient e-mail form.

Generali also has a new mobile application in the works. Generali France, the second largest general insurer in France and one of the main foreign subsidiaries of the Generali Group, recently unveiled a new life insurance application for
iPhone which was created and implemented with the help of Accenture.

The new application, which will be made available in the beginning of 2010, will provide Generali France’s network of financial advisors real-time access through their mobile device to their client portfolio as well as detailed information for each client account, including savings, payment history, investment portfolios and the financial performance of each fund in which savings are invested. A "business-to-consumer" version will also be made available for the clients of Generali France’s network of financial advisors and for the direct clients of Generali France’s Internet subsidiary, who will have direct access to their
own accounts.

Accenture helped Generali France define the overall business and information technology (IT) scope of the new life insurance application for iPhone. According to the company, Accenture assisted Generali France in defining the targeted audience for the application, the business needs, the "must-have" functionalities that would benefit end-users, and the required IT architecture. Accenture also designed the application’s user-friendly screen interfaces.

"Following an Accenture workshop on how changes in consumer behavior are driven by the increased usage of smartphones, Generali France decided to work with the company to develop concrete business applications for its life insurance operations," said Stéphane Dedeyan, a member of the Board of Management of Generali France. "This new application for iPhone will be particularly helpful to our financial advisers, who are looking for innovative ways to stay close to their clients, as well as to our clients who will be able to directly access their account in a user-friendly way."

Khalid Lahraoui, a senior executive in Accenture’s Financial Services group said, "By implementing one of the first life insurance applications for iPhone and providing financial advisers and clients with an easy-to-use application that enables them to access the information they need no matter where they are, Generali France is demonstrating its ability to innovate and take advantage of the increased use of smartphones to give customers a distinctly different
customer experience."

American Family Insurance has also recently released new mobile applications. American Family Insurance is based in Madison, Wis., and offers auto, homeowners, life, health, commercial and farm/ranch insurance in 19 states. Its mobile apps are designed to make it much easier for its customers to conduct insurance business using their cell phones.

Customers can use the new apps to file a claim, pay insurance bills, check their accounts and locate the nearest American Family agent. The new applications are designed for Apple iPhone and Blackberry Storm users. A new, streamlined version of the company’s Web site is also available to all mobile phone users.

"Our customers are doing more from Web-enabled phones and other portable communication devices," says Bill Simon, American Family Insurance’s digital marketing director. "People rely on mobile technology so they can do business with us from virtually anywhere at any time."

According to the company, the new applications and mobile Web site deliver a better user experience on mobile devices with smaller screens and potentially slower Internet connections. By eliminating much of the graphic and multimedia extras, the clean interface quickly links users to business functions.

The iPhone and BlackBerry applications are downloadable programs that allow the user to quickly access commonly used functions of the company’s Internet site. For example, the new applications will allow customers to immediately report a claim from the scene of an accident and even locate nearby vendors that can help repair their vehicle.

Since many mobile phone users access the Internet on a mobile device other than an iPhone or BlackBerry, the company’s mobile Web site is accessible for those with other types of smart phones. According to the company, the American Family mobile site will have fewer graphics and multimedia, making it easier for users to navigate it on a small screen. It will be optimized to display the site correctly on any mobile device making the request.

AXA Equitable Life Insurance Company has also recently launched two new applications for Apple’s iPhone and iTouch. The free apps, available for download from iTunes, provide women consumers on-the-go access to financial calculators to help them keep track of financial objectives. The company released the iPhone apps in support of its education and empowerment program, "The AXA Equitable Connection: Women, Wealth and Wisdom."

"Women are pulled in many different directions and they often do not have the time to focus on managing their money," said Barbara Goodstein, executive vice president and chief innovation officer for AXA Equitable. "We launched these applications to help women take control of their finances whenever and wherever they want to."

Users can download the apps from the iTunes App Store by searching for AXA Equitable directly from their iPhone or iTouch devices, or from iTunes on their computer. The two apps currently available include a retirement income calculator and a college savings plan calculator.

Additional apps expected to be released soon include a retirement shortfall calculator, life insurance calculator, life expectancy calculator and an all-in-one calculator. The all-in-one calculator combines all AXA iPhone apps for individuals who want to get a singular view of multiple aspects of their financial situation.

"With the Web technology available today, we are always looking for ways to enhance the online experience by providing consumers with the resources, education and tools needed to make more informed financial decisions," said Connie O’Brien, senior vice president of Internet Strategy and Development. "The iPhone apps achieve that goal, while also providing a new level of convenience for our customers and prospects alike."

CSC Offers Mobility Solutions

Some technology vendors are also offering new mobility solutions for the insurance industry. CSC recently announced new offerings to bring mobility benefits to the insurance process lifecycle. These mobility solutions, encompass mobile software applications, consulting and management services to help insurers plan, build and manage their wireless communications roadmaps. In addition, the company is developing applications for
BlackBerry^® smartphones.

More than 60 potential applications for all mobile platforms, BlackBerry included, have been defined to help carriers expand options, boost self-service and reach new demographic markets in ways that benefit both agents and consumers. One application, designed for clients of CSC’s policy administration system, enables their customers to upload accident scene photos for faster claims handling. Another provides insurance executives with access to analytical dashboards displaying critical business information anytime, anywhere. CSC will collaborate with its client communities to prioritize application development and will employ knowledge and experience gained from delivering mobility solutions in
other industries.

"Mobile devices are the next big platform challenge for the insurance industry," said Jim Cook, president of CSC’s Business Solutions and Services organization. "CSC is uniquely positioned to lead carriers through this transition because of our credentials in other verticals and our proven track record of helping financial services companies adopt and leverage new platforms."

Want to know the value of your life? There is even a new mobile application that claims it can give you the answer. LifeInsuranceAgency.com, one of the leading insurance comparison sites, recently introduced its new iPhone application LifeValue. According to the company, LifeValue is a free iPhone application that helps people answer the at-times confusing question: What is the value of their life? LifeValue calculates the financial value of one’s life and leaves the philosophical questions to be answered by philosophers.

Knowing the financial value of one’s life is important, especially when shopping for life insurance. The company says that LifeValue can help anyone who’s ever wondered about how much life insurance they need to buy. Consumers who are interested in calculating their life insurance needs without the assistance of an agent can simply input their information into the application. The LifeValue application will give suggestions on how much life insurance the consumer may want to consider purchasing.

LifeValue also serves as a quote finder that can be used right on the iPhone. If a consumer wants to compare life insurance rates from a variety of competitors, they can use the quote search function and receive unbiased, customized life insurance quotes in no time.

LifeValue helps users understand how much life insurance coverage they need. It also lets users input their information one time to compare rates for life insurance. Consumers can compare rates for up to three different life insurance companies almost instantly.

Mobile Apps and the Future

IT budgets may be going up in 2010. According to a report by insurance and financial services research and advisory firm Novarica, some of the life insurance companies it surveyed said they are planning to increase IT spending in 2010. The report "US Insurers IT Budgets and Projects for 2009-2010 was based on a survey of 50 insurer executives and was conducted during late July and early August 2009.

"Fewer insurers are focused specifically on dealing with the economic crisis than in previous polls," said Matthew Josefowicz, director of the insurance practice at Novarica and lead author of the report. "Except for firms that suffered heavy direct losses, most insurers are more optimistic as they plan for 2010."

While mobile apps may not be the top project for insurance companies in 2010, according to the report (top projects next year include policy administration, business intelligence, and claims), they may be on the agenda.

Today’s customers are doing more business from their mobile phones. So it is no surprise that the mobile phone is gaining momentum as a platform for applications. Mobile applications today can enhance customer service, enhance profitability, and give companies a competitive advantage. In some cases these apps may even help reduce costs. As insurance companies begin to realize how valuable mobile applications can be, we will likely see many more companies developing them in the future. n

Contact Resource at resource@loma.org