The rise of the mobile consumer
According to a recent report, published by tech research company Gartner, mobile payments (m-payments) worldwide are set to increase by 44% this year to $235.4 billion, with Africa continuing to lead the way.
With the like of M-Pesa and Fundamo now household names processing billions of dollars in transactions every year, and mobile use in South Africa and particularly in Africa continuing to grow at a rapid pace, there is an opportunity for insurers to raise their game, says Rhys Collins, Head of African Operations at insurance technology experts SSP. One fundamental trend he says SA insurers and brokers should take note of is making sure their websites are optimised for mobile use, whether it be for smartphones or tablets. "This is becoming progressively more important and will continue to do so in the years ahead," Collins notes, pointing out that research has shown that mobile users are five times more likely to abandon the task if a site isn't optimised for mobile.
Mobile and tablet applications ("apps") are another way for companies to add value to their customers. Collins says unfortunately existing insurer apps have not taken off with the public, with only a small percentage of policyholders currently using mobile insurance apps. "To be more successful insurers need to focus on apps that offer real solutions to consumers'
needs. Consumers expect to be able to access information easily via their preferred devices while on the move, for example, being able to access travel insurance documents while travelling," he says. He notes that the banking sector has moved ahead by offering secure mobile web portals and apps but says insurers and brokers need to catch up. "Several insurers and brokers are already experimenting with these kinds of apps and this experimentation is likely to continue," he says.
A good example of an app that has received positive reviews was a 'try before you buy' telematics app in the UK. The app generated significant downloads from its target audience because it helps drivers understand exactly how much they could save on their car premiums by using telematics.The app uses GPS technology to generate specific scores based on speed, anticipation and other criteria, providing customers with an overall driving score after 200 miles. Other telematics apps are becoming increasingly sophisticated giving drivers access to their driving scores and alerting them to potential faults in their cars. Collins believes this kind of innovation will shortly be reaching South Africa as well.
Collins says insurers and brokers can also both benefit from making information available that customers and prospects can download about their businesses. Multimedia services such as videos to explain what's on offer, case studies or testimonials from happy customers, and articles relevant to customer searches can all help firms differentiate themselves from the competition by offering education and advice to customers. This can also help stimulate lead generation.
"There's no denying that the world has entered the age of mobile. Insurers and brokers need to consider and embrace this and use the many advantages it offers to enhance their offering, or stand the risk of being left behind," concludes Collins.
