Research conducted by Telstra in 2011 identified major issues confronting Australian insurers, including:
- Changing customer expectations/motivations
- Increased frequency of catastrophic events
- New Entrants & aggregators
- Distribution model economics
- Emerging usage based insurance models
Titled “Mobile Innovation– the next frontier for growth and productivity for insurers” the research report examines the role of mobile innovation as the next frontier to drive growth and productivity in the general and life insurance market in Australia. It demonstrates the time is right to accelerate investments in the mobile channel, as technology developments have seen a significant change in the capabilities of mobile devices and a corresponding shift in the way consumers engage with the internet.
The research findings suggest that innovation leveraging mobile-enabled technology has the potential to:
- Deliver growth for insurers through greater customer loyalty and category growth.
- Deliver benefits highly valued by insurance consumers including greater convenience, personalisation and fairer premiums.
- Provide insurers with the opportunity to create a deep interactive and ongoing relationship with their customers, thereby changing the commoditised, purely transactional nature of the market.
The report has identified three technology experience concepts to help insurers better support customers and improve their business growth and productivity:
- The Mobile Insurer – mobile phones and the mobile network can provide location based information that connects with existing ICT infrastructure and enterprise systems of the insurer to deliver streamlined customer service.
- The Mobile Consumer – using the knowledge and data insurers collect on many products and services, insurers can provide advice to their customers through a mobile application to provide relevant and timely information to assist consumers in their purchasing decisions.
- The Connected Insurer – evolving Machine-to-Machine technology such as telemetry that enables insurers to provide new classes of value added services such as pay-as-you-use policies.
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