Apps – doing it for the industry?
Technology is evolving at a rapid pace with all kinds of apps and tools being launched.
The general belief is that companies have to stay ahead of their game and adapt to the latest technology to interact and communicate with clients, which is one of the critical elements in the communication process.
It is essential to survive in this competitive industry and most companies have launched an app or tool to provide a better customer experience for clients.
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What the industry says
We operate in an industry where technology is critical in everything we do. Apps and tools are the new buzzwords and most companies have some type of an app or tool. FAnews recently ran a poll in which the audience was asked if they believe apps are the way to go for companies operating in the insurance and financial services industry.
The results show that 41.18% percent of the audience believes that apps do make people’s lives easier. Two point nine percent of the audience thinks that apps are not really relevant and they do not really use them. Seventeen point six five percent of the people state that they are not sure that apps make any difference to companies or clients, and 20.59% say they
have not seen a useful app in the insurance space thus far, while 17.65% are not using any apps at the moment, but will maybe consider using it in future.
There are two main trains of thought around apps and tools. The majority of people are of the opinion that apps and tools add value in the business environment and to be relevant as a company, you need an app or tool of some sort. On the other hand we hear a few voices questioning the value apps bring to the business and question the return on investment as the
development of an app can be a fairly costly exercise. The challenge here is not to have ‘just another app’, but really bring something to the market which makes your offering unique and different.
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FAnews asked the question on the value of apps and tools to a few industry players.
Cindy Beets
Head of Public Relations and Marketing: Lightstone
The business of apps in the SA market
Cindy Beets, Head of Public Relations and Marketing at Lightstone, believes that apps provide relevant insight that is integral to winning the customer service war and can provide the much needed differentiator for an insurer. “An app which makes both the insurer and the client’s life easier and delivers the right information to the right place in an easy and user friendly way, will definitely make a difference,” she says.
“Take the Discovery Insure app for example. It provides useful feedback to a user by allowing the user to compete with peers (bringing in the competitive nature of humans), which urges behaviour changing elements to improve a driving score, therefore reducing premiums,” continues Beets.
Another example is the LIVE Inspect App which is designed around making an arduous task easy and user friendly. “The ultimate goal is to allow an insurer’s client to perform their own pre-inspection without having to go to any inspection centre, by capturing all the required information in a few easy steps of scanning a drivers licence, vehicle licence disc and taking photos of the vehicle’s exact current state,” says Beets.
The app is technically savvy in the sense that it automatically scans all the information required by an insurer which removes all forms of human error. “The level of advanced technological ideas and capabilities contained within South Africa is increasing, and an app will be well used if it is relevant to a client, and at the same time assists insurers in complying with upcoming regulations,” concludes Beets.
Bernie Ray
Chief Executive Officer (CEO) of Emerald Risk Transfer
Is face-to-face interaction fading away?
Bernie Ray, Chief Executive Officer (CEO) of Emerald Risk Transfer says, “an app is never going to be a replacement for customer care. I see an app as a platform to interact with your customers in the digital space, so it just gives you another channel to service your client’s needs.”
Stephan de Beer
Head of Claims and Supply Management, Europ Assistance South Africa
Stephan de Beer, Head of Claims and Supply Management, Europ Assistance South Africa says, “apps are not being fully utilised yet, as users feel more comfortable speaking to an adviser. This is, however, changing slowly but surely.
Bernie Ray
Chief Executive Officer (CEO) of Emerald Risk Transfer
“I think apps will become the norm, so ultimately every company will have one. Assuming the product to be equal, and assuming the app is functional in the current environment, I believe that the company with an effective app will attract more customers than one without,” continues Ray.
Ryan Rudman
Brand Manager, Cardinal Insurance Management Systems
Ryan Rudman, Brand Manager, Cardinal Insurance Management Systems says that there has been a massive move from website access to mobile access, as with personal banking, because the app is more personal, it is more secure, and it is built specifically around the customer user
experience and requirements. Therefore, it is expected that it will become central to the customer service and a client expectation within months.
“The process of filing a claim without an app is tedious and time consuming. Doing the same process with an app makes life so much easier for both the consumer and insurer, and the data capture and enrichment process is more efficient and accurate – a double win,” says Rudman.
Bernie Ray
Chief Executive Officer (CEO) of Emerald Risk Transfer
Value-added services
Ray goes on to highlight that he does not see many insurance apps in the South African insurance market; however, those that are there have a mixed market. “It seems the fundamental approach is to give the potential policyholder something useful for free, like roadside assistance,” says Ray.
Ray believes that apps will make interactions easier and more accessible, so the bottom line is to make apps useful and people will download them.
“I am sure we are not in the international space yet. However, from an international perspective I think we are all just beginning to see the benefits of apps, and developments.
Just think of the banking world and how fast the roll out of apps occurred. A few years ago they were non-existent, now they are indispensable,” said Ray.
Wimpie van der Merwe
Chief Executive Officer (CEO) Global Choices
Wimpie van der Merwe, Chief Executive Officer (CEO) of Global Choices agrees with this by saying, “in the same way that banking apps revolutionised the way individuals transact, insurance apps are moving the industry forward. The easiest way to apply traction with the
client is to embed value added services at the push of a button. This innovation and forward thinking will help win the customer over. For example clients will use the emergency panic button to access value added services such as roadside assistance, home assistance, home safe
chauffeur and concierge services as often as they are reminded of the benefit.”
Being at the forefront of innovation provides comfort to clients that they are part of a forward thinking industry rather than a static industry. The insurance industry is facing many changes and if you are able to evolve and innovate to demonstrate the value you are offering your clients, you will be able to successfully charge fees for services that are beyond the industry norm.
André Symes
Group Brand Manager Genasys Technologies
The challenge
André Symes, Group Brand Manager at Genasys Technologies says, “apps are convenient. Everybody, local and offshore, are currently app crazy. I am however not sure that we are ready to disengage 100% from human interaction. Having said that, it is the time now to perfect the way apps work, as the next generation - the Millenials (born after 2000) - are in the frame of mind of doing all their transactions through technology.”
“The focus has been on client apps in the technology space. However, if you think about it, the main benefits with current technology will be for the ‘mobile broker’, giving him the ability to do a needs analysis, bind a quotation on client premise and let them access their
documents where ever they are. This far outweighs the perceived need for policyholders to have access to information or services they actually hardly ever need,” continues Symes.
Drew Schnehage
Chief Executive Officer (CEO) Aquarius Underwriting Managers (AUM)
Drew Schnehage, Chief Executive Officer (CEO) of Aquarius Underwriting Managers (AUM) agrees that “the first challenge is to get the client to download the app. It is essential to give them reasons to download the app. Get the clients to understand the app and know what it
offers. I do however think that apps are the way to go but we need to create awareness and I agree with Lightstone that Discovery Insure has done a brilliant job with the safe drive app launch,” concluded Schnehage.
Ryan Rudman
Brand Manager: Cardinal Insurance Management Systems
“With each app and tool it is extremely important to ensure that it has what we like to term ‘stickiness’ for the intended user. Unlike a website, an app is a very personal tool on a personal device and must solely revolve its experiences around what the user expects to do with it. If a development company gets this right, they have the stickiness they need to make the user reliant and dependant on the app to perform that specific set of functions,” says Rudman.
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The big question
So the question remains: are apps doing it for the insurance industry?
FAnews posted an article Financial & Advisory news
Please share your views from a broker and adviser’s perspective on the value you see in apps and tool for yourself and for your clients.
