Problems Facing In Motor Insurance Sector

Published Date: 02 Nov 2017

The mobile services and applications value chain has gone through many changes during the past few years (1990-2012) due to the evolution of mobile devices and their capabilities. According to Chohick(2011),a platform is "a product that can be extended by a user for the benefit of other users", and this statement can be verified by that the iphone or android as a platform played a fundamental role in the shift of developers attention to this new opportunity, as well as consumer education and awareness of the benefits of applications to ensure a viable ecosystem.

As more and more community are transferred to mobile technologies, well, in truth, the number of people owning a Smartphone or a tablet and other new devices has skyrocketed over the last few years, every economic aspect is faced with a new perspective in approaching customers. In the context of software progress, hundreds of millions of mobile owners and social media, insurance companies and their respective ecosystems cannot afford to be kept out of the digital loop.

Mobile technology can help save money, mitigate risk, and increase productivity. It can also attract new customers and retain current policyholders. Ever-more powerful data networks, mobile devices, and application software solutions are being packaged into attractive products that promise fast, hard-dollar ROI. And top-tier mobility vendors ensure that today’s wireless solutions are more affordable, easier to use, and quicker to deploy. Insurance companies know that they have to do a better job of managing risk, controlling expense, and creating new products.

From traditional and time-consuming approaches towards a new era of, touch and solve", let’s outline the main benefits that insurance industries have to gain from adopting mobile applications and how their insurance app should look like:

superior client base by branching out to multiple mobile platforms (Android, iPhone, tablets, etc.) and cover a greater objective demographic

recommend product information

Billing claims, policy service, payments and advice

Providing reliability and trust by implementing high security standards for personal data and sensitive information

Increased communication between agents and clients which leads to client satisfaction and retention

Ease of access (touch and click) and good user experience generates positive brand awareness and client loyalty

Accomplish customer needs more speedily and time-efficient

Immediate support and intervention

Upgrade transactions or packages and offers

Push notices that keep insurance companies in touch with customers and offer solution or information

Mobile based or other methods that are currently available in motor insurance.

The American insurer Nationwide was the first to offer a mobile application. In April 2009, the company launched an iPhone application, which allowed their clients to collect accident information, take pictures of accident scenes, and situate emergency trucks and repair shops. Since the launch of the first mobile insurance application, more than 30 companies had developed similar services by 2010.However, it remains anonymous which applications are currently presented on the market and which functionalities are chosen by customers. It is not clear whether products such as health, motor, or accident insurance are similarly supported by the applications. The lack of case studies from insurers and the nonappearance of academic reviewed work on applications that go further than the development of sample limit the ability to assess the status quo of mobile applications.

There is one source for the world’s first custom insurance application designed for the individual insurance agents or insurance association. For a great low cost, an insurance agent can compete with the larger insurance companies for client’s smart-phone app space. My Pocket Insurance" app offers consumers a peace of mind knowing that your agency is just a touch away. What else can an insurance agent or insurance association do with a "My Pocket Insurance" app? Communicate the latest insurance news and agency updates by simply adding fresh content to your insurance app’s content management system.

Aside from being a tremendous marketing tool for an insurance agency, "My Pocket Insurance" app also has a number of rich features like an insurance dictionary; GPS directional information, facility to take claim pictures at the scene of a car accident or take witness statements using built-in voice recorder.

Benefits of "MY POCKET INSURENCE" apps:

Once installed, client will have that insurance app on their smart-phone’s home screen.

Clients can promote and send referrals with a click of a button.

Increase client loyalty and maintenance through modernization.

Set our insurance business away from each other from other agents and agencies.

Facility to update insurance app with our web-based CRM.

Customers can contact agents with the touch of one button located in your insurance app.

Receive detailed claim photos and allow client to book appointments.

(http://mypocketinsurance.com/, 2013-04-06)

Handheld Device Usage for Claims Services

Besides sales personnel, the other groups of insurance industry employees for whom mobile devices are essential are the field personnel who support claims adjustment. These workers investigate claims, assess damage, and audit claims information. They perform the majority of their work away from their home office, so their needs for mobile access to data are similar in many ways to the needs of sales personnel. It is important to note that not all insurers directly employ the people who deliver these functions. Instead, many insurance companies outsource the claims adjustment function entirely. Others have a small staff of full-time adjusters for day-to-day business and hire adjusters on a part-time basis in times of catastrophe.

Example for Mobile claiming system

(Source: us.blackberry.com)

Problems facing in Motor Insurance sector

The world insurance industry is attempting to steady itself after a fairly volatile decade of company exits, increased regulation, and financial upheaval. There are some challenges and problems that have emerged and crystallized in this sector are:

There is no proper photo capturing methods to take accident pictures and due to that many organizations lose customer satisfaction. Also facts that found by research, there is lot of complaints about the validating process of the motor insurance.

In world motor insurance sector have no proper way to data transmission between agents & top level managers.

Unsatisfied claim management systems

Communication problems between both parties’ agents and clients.

Unsatisfied time management

Advertising facilities very low and also insurers pay high costs for advertising or alerts sending activities

Organization lose many facts and printed documents due to the delays done by agents

Worldwide motor insurance companies keep on facing an uncertain future. Evolving regulatory requirements, a still shaky economy, and more demanding consumers unite to present a forceful set of challenges to today’s insurers. While weaker companies continue to shake out, remaining competitor must realize that survival and success will depend largely on their motivation to innovate. Insurers are not known for eagerly embracing new technologies; however, it’s well past time to include mobile and wireless solutions as key components of any growth strategy.

Problems and limitations in Mobile based insurance systems

Security-The value of securing sensitive customer information requires robust solutions in encryption and device access control. A number of substitutes are available, including biometrics for user verification, password control, USB keys, and tokens. Protection against theft may also contain software that will verify, monitor, log, and remotely wipe devices in addition to an "always on" or "archival" encryption. Each security solution has a different price point for deployment.

Storage- insists for more information and complex presentations of information grow, so does the need for storage capacity. Companies can now employ "removal storage" cards, such as safe Digital (SD) devices, in order to recompense for the lack of resident storage in PDAs and smart phones. Insurers would be well advised, however, to think about the increased security risks and variables introduced by removable storage devices.

Connectivity-Latency for network-only based applications is still high, and under many situation connections are not 100% consistent all of the time. Therefore, consideration must be given to a self-synchronous model, or offline mode wherein individuals can work even with irregular connections. With this approach, updates to the data happen when the connection is restored.

These type of applications are able to use only Smart phones and tablets running the Android OS (API level 7 or greater)

Screens and keyboards tend to be little, which may make them hard to employ. Alternate input methods such as speech or handwriting recognition require training.

Limited input possibilities

Conclusion

Despite the many limitations inherent in mobile devices, it is worthwhile considering the development of such applications. There is a general danger of over emphasizing the current limitations, while more attention should perhaps be paid to the upcoming better-equipped devices and applications developed for them. In as the same way that mobile insurance applications catalyzed the development of Web applications, mobile insurance applications may become the key driving force for developing mobile applications. Furthermore, the development of mobile applications should not be about reducing content and functionality but about creating new, innovative ways of using information technology in place, time and user sensitive contexts. The mobile design principles of mobility, usefulness, relevance, ease of use, fluency of navigation, user-centeredness and personalization may help us to achieve this. In any case, solid functionality and high usability should always be guaranteed in mobile applications.