Everything You Need to Know about Offering a P&C Policyholder App
There are a lot of good reasons to offer your policyholders an app. Then again, there are a lot of good questions, too. To help you navigate that, we’ve put together a lightning-fast Q&A. Let’s dig in.
Q. What’s so great about an insurance app?
A. “The words ‘cool’ and ‘insurance’ are not often words that you hear in the same sentence. But it is happening,” Lexis Nexis said. By far the biggest benefit is in claims, where a good app can streamline things in a big way:
- Speeds up first notice of loss.
- Allows users to submit photo and video documentation in real time.
- Enables your staff to focus on tasks that deserve their attention, taking the repetitive burden off their shoulders.
- Improves the experience for customers, helping to prevent post-claims churn.
Of course, apps aren’t just for claims. Mobile apps can monitor and improve driving safety and bridge the communication gaps between you and your customers. Premium payment is another big draw. Instant access to policy information and auto ID cards is also popular. Some apps also include convenient features like traffic alerts and geofencing to help parents monitor their teen drivers.
Q. Can you give some examples of how they’re being used?
A. Yes. Insurance Journal said that at Allstate, 60 percent of claims “are now filed with a cell phone application that allows policyholders to take photos of the damage.”
Farmers Insurance is busy testing an app that uses high-resolution photos to draft a rough estimate for repair, which is later fine-tuned by an adjuster.
Meanwhile, Owl Cameras is attempting to jumpstart the claims process by capturing video of the crash itself via cameras that policyholders can place in their cars.
Q. How hot is customer adoption?
A. Here the story takes a twist. While customers favor the idea of using an app, implementation and usage has been slow.
On the quoting side of the equation, many consumers like the idea of allowing the monitoring of their driving data in exchange for a discount. In fact, the 2019 UBI and Telematics Market Report by Cambridge Mobile Telematics (CMT) found that 50% of customers adopt usage-based insurance when offered the option. Furthermore 75% of customers surveyed preferred the idea of insurance pricing based on driving behavior compared to traditional factors such as a credit score.
On the service side of the equation, mobile claim reporting has not yet taken off. “Despite a nationwide advertising blitz for mobile auto insurance apps and widespread use of digital channels to purchase insurance, U.S. auto insurance customers have been slow to adopt digital claims reporting, according to the research firm J.D. Power,” Insurance Journal said.
For example, while 22 percent of auto customers were willing to report a claim online, only 9 percent chose to use an app. And among those who reported digitally, satisfaction was 16 points lower than for those who reported by phone.
Q. What are the most common concerns insurers have?
A. The biggest concern for insurers is the upfront investment of both time and money. Like everything in the insurance business, developing an app is complex. To get from the drawing board to rollout to adoption, while reaping the best possible results, requires some careful thinking – as well as a great vendor/partner. The upfront investment can be greatly reduced by customizing an existing program with your branding and specific requirements.
Q. Does Silvervine offer an app?
A. Yes. We are excited to announce the rollout of Silvervine Mobile, a new P&C policyholder app. Our new app will integrate with Silvervine 6.0 or your existing policy administration system. Download our capabilities sheet now and request a test drive. We’ll send you a link to download and test the new app. Our white labeled app may provide you with a faster, smarter path to digital engagement!