How mobile apps are changing the Insurance sector

Mobile phones and smart mobile devices are a part of our everyday life. They are no longer just communication devices and the major reason for this is mobile apps. Most of our day-to-day activities require a mobile app, from alarms for waking up to checking emails and bank accounts, listening to music, watching movies or sports & even education. High-speed internet access and the engrossing user interfaces on mobile phones and devices have added a whole new dimension and an innovative experience to people's lives. The wide variety and the sheer number of mobile apps have produced a noticeable change in the way people view and use mobile devices and experience computing.

Mobile apps are now developed for and used in every field and domain. Customer expectations in the service sector are constantly rising and the insurance sector is no exception to this trend. Digitization of the insurance sector helps in increasing efficiency, customer satisfaction, user engagement, loyalty, ease of making premium payments, renewals, filing claims etc while helping insurance companies simplify processes and reduce paperwork. The Covid-19 pandemic has made such mobile applications a necessity.

Challenges:

• Lack of trust: It's one of the main reasons why people don't buy insurance. Many insurance companies fail to pay claims and sometimes don't offer the full benefits they promised. Companies shut down due to financial challenges and are unable to pay claims creating a negative ripple effect.
• Competition: New insurance companies keep on coming into the market due to the lucrative premiums. Companies offer bigger and better benefits to compete in this aggressive market. New companies may not have enough reserves to pay claims and negative publicity is often the result. A few such organizations end up tarnishing the image of other better companies.
• Mismanagement: Mismanagement is one of the biggest causes of failure in any organization. Mismanagement in the insurance business can be a cause of life or death for the policyholder. It can lead to the rejection of genuine claims because of fund mismanagement, or miscommunication with the policyholders.

The challenges offer the reason for shifting to the digitization of the insurance sector and the need for offering mobile applications to customers. Some of the benefits are:

• Faster processing: Digitization of services leads to faster claim processing. This is especially so in the case of cashless claims. Earlier, in case of hospitalization, the claimant had to get a pre-authorization from the insurer. With digitization, using the insurance company’s mobile app, the details can be shared immediately and the insurance company can also respond faster. Chances for errors are also eliminated as all details related to the policy are already available in the digitized format on the app along with details of the insured person(s).
• Better customer experience: Customers experience faster and better responses. Before digitization, the insured had to visit the insurance branch office or call the customer care number to register a claim. Digitization has changed this. While the claimant can still visit a branch or call and register the claim, the option is available to register the claim on the mobile app. The insurance companies also suggest that claims be registered online. It's convenient and customer-friendly, leading to enhanced customer experience.
• Reduces cost: The gap between the insurance company and the customer has been bridged by technology and has been made possible due to standardization and comparable information. With digital marketing, the use of traditional venues for advertisement has been reduced.

Mobile apps offer many advantages for insurance companies like:

• Meeting customer needs: Today, the customer is savvy with the use of mobile apps and is looking for clear and transparent information, along with an option to select a policy at a reasonable price. An insurance mobile app helps deliver information and pricing that allows the customer to make an informed choice thereby meeting customer needs. Different user profiles can be managed including contact details, claims, etc.
• Competitive advantage: Mobile apps which are paired with good customer service give an advantage over competitors. The apps developed by the insurance companies offer useful features like treatment history, and prescriptions to also schedule medical appointments on the go. Such services make it convenient for the customer and give companies offering such services a competitive advantage.
• Increase interactions: An intuitive and easy-to-use app makes interactions meaningful and easy. A well-designed app encourages customers to connect and buy more products as a well-informed customer is always willing to add and extend the insurance basket. With an integrated payment gateway, policyholders can pay the premium directly through the app.

Conclusion
The insurance business deals with the risks and transparency is the key to gaining the trust of the customers. Mobile applications help insurance companies reach out to policyholders simply and effectively, easing the way for customer interaction. Choosing an experienced software company for insurance mobile app development can help an insurance company develop mobile apps to cover the global insurance services to be offered to customers.