From the Editors Desk Mobile Payments 01. Realigning Mobile Payments: An Open System Solution 05 for an Evolving Industry

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2 Content Preface From the Editors Desk Mobile Payments 01. Realigning Mobile Payments: An Open System Solution 05 for an Evolving Industry 02. Mobile Money Transfers: Opportunities and Challenges 13 in an Evolving Market 03. Mobile Payments: A New Frontier for Payment/ 21 Money Service Providers Mobile Banking 04. Deploying Mobile Solutions- Choosing the Right Partner! The Future of Retail Banking: Mobile as a Core Delivery Channel Achieving Financial Inclusion by Leveraging Mobile Technology 43 Mobile Enterprise 07. Mobilizing the Enterprise - Strategies and Technologies to 51 Drive Organizational Readiness 08. The Role of Mobility in the Regulatory Ecosystem Ensuring Security in Enterprise Mobility Mobility - Driving Efficiencies and Growth in the Insurance Industry Workforce Mobility An Enterprise Perspective The Need for a Truly Mobile CRM (tmcrm) Solution 85

3 Financial Services in the Mobile Age Baskar Sridharan Senior Principal Insurance and Financial Services Infosys Consulting 10 Mobility - Driving Efficiencies and Growth in the Insurance Industry Partha Sarathi Panda Principal, Insurance Healthcare & Life Sciences Infosys Consulting To compete in today's 'on-the-go' world, every organization must have a mobile strategy and considerable mobile capabilities. This is especially true in the insurance industry, where customer satisfaction is driven by reliability, transparency, and ease of communication. This article explores mobility's role in the insurance industry, the advantages of a mobile strategy, and the importance of mobility in the Claims Management and Sales lifecycles. Introduction: Mobile Technology and the Insurance Sector Mobility has made a quantum leap in the last decade, morphing from simple handheld devices with minimal functionality to a stage where the entire world is seemingly in your hand. Mobile technologies have evolved from using tablet PC's (pre ipad), to PDA's, to next-generation smart phones. This evolution has been driven by dramatic advancements in wireless technologies that ensure: a) simplification and easy availability b) access to fail safe connectivity c) continuously enhanced functionality and features d) a wide variety of product and service choices that meets the needs of different customer segments This has led to phenomenal levels of proliferation of wireless mobile devices across the world's consumers. Gartner estimates that 1.2 billion mobile phones were sold worldwide in A number best put into perspective when you consider that the number of personal computers sold in the world was just under 300 million. Mobile devices are ubiquitous and the platform of choice for consumers across the globe. The high adoption levels of such wireless mobile technologies has resulted in businesses competing with one another to discover further means to exploit these technologies for superior customer service, and hence growth. How are insurance companies tapping into this meteoric growth of usage, technology, and features of mobile devices? As with other industries, insurance carriers first leveraged mobility as a communication and connectivity enabler (i.e., access, appointment calendar, maintain task list, etc.). As the technology became more ubiquitous, the utility value of mobile devices increased multifold. Many early adopters started utilizing mobile devices in their field operations, especially in the Claims area. For example,

4 Indiana Farm Bureau, an early adopter, enhanced its auto claims processing by using a hand-held mobile data wireless display technology in The momentum brought about by the adoption of mobile technologies was evident in the growth of mobile technology spend by insurance companies. According to a TowerGroup analysis published in 2006, the spending on mobile technologies by US insurers was the fastest growing component of IT spending in the insurance industry from , with a CAGR growth of 18%. Though the growth of mobile IT initiatives slowed considerably during the last half of the decade, it is imperative that mobile remain a prominent component of an insurance company's technology and business strategies. Defining Mobility's Place in the Insurance Value Chain As the insurance sector recovers from the aftermath of the financial and economic crisis, the focus has returned to growth. To promote growth, carriers are focusing on their distribution channels enhancing the effectiveness of existing channels and increasing the share of alternate channels. Mobile technology provides another channel to connect with customers and differentiate from competitors. Furthermore, the Gen X and Gen Y consumer base demands easier, on-thego mobile access to their service providers. This trend applies to banks, retailers, credit card companies, and insurance companies alike. To meet these new demands, insurance Leverage Mobile Technology Across the Insurance Value Chain Figure 1 Sales & Distribution New Business Policy Servicing Claims Management Prospect Case Assignment Quoting Alerts for Changes/ Endorsements Loss Adjuster Case Assignment Sales Reporting Underwriting Status Implement Changes Claim Assessment Activity Logging Premium Payment Transmit Claims Data Contact Management New Policy Settlements Calendar Management Portfolio Management for Channel Across the Insurance Value Chain 74

5 companies have begun to rethink their mobile technology adoption strategy. Several carriers have released m-insurance applications to their customers. Such applications help consumers to access policy/ account information, file claims, pay premiums, locate offices/ agents, and access financial tools and calculators. Though m-insurance applications are picking up steam across the industry, efforts to enable the field force are lagging behind. To keep up with their competitors, insurance carriers must focus on implementing enterprise mobility. The good news is that (as Figure 1 indicates) there are many opportunities across the insurance value chain components Sales & Distribution, New Business, Policy Servicing and Claims Management. Defining Your Mobility Strategy The adoption of mobile technologies by insurance companies enables their field force to establish virtual offices, provide service onthe-go, and help deliver these same services in a shorter time span. Mobile devices with the right technology, coupled with ease of use and convenient handling, can support the extended virtual office and an extended point of service for the insurance customer. To mobilize the workforce efficiently, a clear understanding of the benefits of mobility is needed. Figure 2 below highlights a few. A survey of some of the mobile strategies used by insurance carriers worldwide also provides some clarity into the type of opportunities available. Illustrated in the following are a few pioneering examples of the leveraging of mobility enablers by top insurance carriers: I. Generali France has recently rolled out an iphone application to its agents and brokers community that will allow access to client portfolios real-time, along with account related information. Benefits of a Mobile Strategy Figure 2 Increase Revenue Increase in Units Sold Reduced Time for Sales Cycle Completion Increase in Claims Processing Capacity by Right Allocations Increase in Sales Force Efficiency Increase Efficiency Reduce Costs Right Fit Mobile Strategies Increase Customer Satisfaction Reduced Cost Per Claim by Reducing Claims Process Cycle Reduced Cost Per Sale by Faster Processing Increased Renewals & Referrals Reduced Customer Attrition 75

6 ii. Allstate Canada has implemented the Symbility mobile claims system for onsite property claims processing. Symbility runs on tablets and Windows Mobile powered Pocket PCs with integrated Bluetooth, Wi-Fi and GPRS/1X wireless technology. Deployment on Windows Mobile devices enables property claim adjusters and restoration contractors to process claims on-site. iii. State Farm extensively used wireless technology to settle hurricane claims in 2004, during Hurricane Charley. iv. During Hurricane Katrina, Hartford was instantly able to settle a record number of claims through its mobile claims solution enabler. v. The New York Life insurance group deployed the 'all-in-one handheld solution', an in-house customer relationship management system, in Hong Kong to over 70% of its 1,100 strong workforce. This provided agents access to more than 900 types of documents - such as underwriting guidelines, lists of doctors and rate books - and to client and policy information. The system also allows agents to perform sophisticated insurance calculations and activity management on their handhelds. vi. Nationwide Insurance launched the Nationwide Mobile for iphone, which is designed to help customers after they get into a car accident. This helps Nationwide customers find local resources, document the accident and submit claims information via their handset. Nationwide Mobile also provides an interface for collecting and exchanging accident information with the other driver involved in the incident. vii.penn Mutual piloted a mobile sales force automation program that enabled , calendar and contact management capabilities, as well as synchronization of client data, delivered to the carrier's independent agents via Palm Treo mobile devices. Leveraging Mobility for Claims Management and Sales operations Though there are numerous opportunities to leverage mobile technology across the insurance value chain components, mobility can play an especially critical role in two core areas: the Claims Process and the Sales Process. Leveraging Mobility in the Claims Management Process The traditional approach to any new process/ technology adoption has a cost reduction goal as opposed to an innovation focus. This holds true in the insurance industry, as adoption of mobile technologies has been heavily focused on claims management, which contributes a 70-80% expense ratio for property and casualty insurance carriers. A mobilized claims management system also goes a long way toward improving customer satisfaction another focal point for most insurance carriers. In the claims management process, the role of the adjustor has traditionally been limited to conducting assessments and providing reports. There are multiple areas where mobility solutions can streamline the role (see Figure 3). Enabling field adjustors with appropriate mobility enablers can contribute to operational excellence, cost savings, and superior customer service. Leveraging Mobility in the Sales Process While mobilized claims management has gained considerable traction amongst insurance carriers, the introduction of mobile technology in the sales process has been slow to catch on. Even so, the business 76

7 Leveraging Mobility Accelerators for Claim Adjusters Figure 3 FNOL, claim details through mobile devices Analytics based assignment of claims to adjusters on mobile device Ability to contact insured for claim details Ability to provide current information for better tracking of claims FNOL Assignment Anytime, anywhere access to policy, loss information Simple handheld tools for assessment External data availability on hand Multi media information (Audio, Video, Pictures etc.) - push to home office from the field Resolution Mobility for Claims Assignment Claims estimation tools/calculators Financial authority for sport settlement Straight through processing of home office approvals Collaboration Collaboration through existing enablers with colleagues & peers for various queries Easy to use collaboration enabler (portal, etc.) Access to claim adjuster specific workspace on portal for updated information case for utilizing mobility in the sales process is quite strong. Mobility enablers can support the sales force in all stages of the sales lifecycle, from lead management to conversion into a client (see Figure 4). Challenges in Leveraging Mobility Keeping technology advances aside, the reason for growth of mobile devices, whether it be PDAs or smartphones or basic mobile devices, is the ease ease of usage, ease of access, and ease of connectivity for the enduser. The ability to access the same information and transact in the same way as one would have done using a stationary unit (e.g., a desktop) or a semi-movable (e.g., a laptop) unit is the demand of the present and the future. For insurance carriers or other organizations implementing mobile solutions, the following must be considered: Connectivity: Establishing seamless and fail safe connectivity to internal applications systems, ensuring a seamless user experience. Security: The number one priority is to protect client information through appropriate security measures - identity management, role-based access, leveraging encryption technologies, etc., and ensuring compliance with internal security policy guidelines. Full Service: Implementing full service functional capabilities and features for a rich and comprehensive user experience ease of use through user friendly, simple applications and appropriate user aids that promote and incentivize utilization. Consistency: Visuals & information tailored toward usability and customer friendly user design. 77

8 Leveraging Mobility Accelerators for Sales Figure 4 Lead generation through /text alerts Analytics based assignment of leads to agents on mobile device Ability to contact insured to assess insurance needs Lead follow-up through /text alerts Lead Management Anytime, anywhere access to client information and client portfolio Internal/ external data availability Quote/ Blind/ Issue Mobility for Sales Sales Support Simple handheld tools for illustration, such as financial calculators Straight through processing of quotes and converting into blinds Collaboration Collaboration through existing enablers with colleagues & peers for various queries Easy to use collaboration enabler integrated to collaboration portal Device independence: The ability to leverage carrier/ retail provided devices for usage of the mobile application, and to ensure standards for development of mobile applications. Conclusion The advances in mobility have moved at breakneck speed. A decade back, the word smartphone was a dream and known only to the few who were developing it. Mobile commerce was unknown. For most consumers, the functionality of a phone was to provide simple wireless communication voice and text. The transformation from 2000 to 2010 has been impressive a leap from the Palm IIIc to the iphone 3GS. The consumer has provided an impetus for growth demanding more and better features and functionality for usage. According to Gartner, by 2014, there will be a 90% mobile penetration rate and 6.5 billion mobile connections. With this level of proliferation, it is crucial that the insurance industry adopt and embrace the technology fully and leverage it for growth, enhanced operational efficiency and superior customer service. At the same time, because each carrier and its business needs are unique, the focus should be on defining the right strategy and roadmap to acquire mobile technologies a critical first step toward achieving sustainable and profitable growth objectives. References 1. TowerGroup, Handheld Device Trends in the US Insurance Industry, August Gartner's Top Predictions for IT Organizations and Users, 2010 and Beyond: A New Balance" by Brian Gammage et al., dated December 29,

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