White Paper Mobile Opportuities for Isurers Mobile adoptio is ot a optio but a reality today as most isurers have already rolled out cosumer facig, producer orieted ad eve eterprise applicatios (apps) ad are plaig more. The big questios are how to gai acceptace of these apps from the target customers ad keepig them fresh by addig ew features while maitaiig high user satisfactio. I this paper we review potetial opportuities for isurers ad share ideas from our Iovatio Labs that ca eable isurers efforts i this icreasigly critical space. We also share our experiece workig with customers o the critical factors that drive success i the mobility area.
About the Authors Aruashish Majumdar Aru heads the TCS Isurace Architecture & Techology Services Practice i North America. Aru has lead large scale trasformatio programs ad strategic cosultig egagemets i architecture ad emergig techologies for the Isurace, Fiacial Services, Maufacturig, ad Telecom vertical idustries. Deis Maroey Deis heads the TCS Isurace Practice. Deis has held seior executive roles (COO, CTO, MD) at isurers, start ups ad major vedors workig to help cliets improve productivity ad iovatio across their eterprises o a global basis. Shamuga Vekatesh Shamuga is a Mobile Solutio Architect. He has 10+ years of experiece o web techologies. Shamuga is part of the TCS Emergig Techology Group for isurace ad is actively workig with customers o strategic iitiatives to create frameworks for mobile web ad ative apps. 2
Table of Cotets 1. Evolutio of Isurace Mobile Solutios 4 2. Isurace Opportuities 5 Use Cases to Cosider 6 Solutio Accelerators 8 3. Covergig Treds 9 Social Media 9 Digital Marketig 10 Olie Aggregators 10 4. Critical Success Factors 10 User Experiece 10 Scalable Architecture 11 Sustaiable Support Model 12 5. Coclusio 13 6. Ackowledgemet 13 7. Refereces 13 3
Evolutio of Isurace Mobile Solutios As is obvious to all, the mobile smartphoe ad tablet markets have see eormous growth ad iovatio. The app market has bee the pricipal driver i this adoptio with the creatio of tes of thousads of ew apps for both persoal ad busiess use. This growth has gaied eve more mometum i the last few moths. To validate this assumptio we did a quick survey of the various app markets. Figure1 shows our aalysis of how the mobile apps market for various platforms has grow rapidly over the last two years. Leadig aalyst firms predict this tred will cotiue through 2011 ito 2012 ad beyod. Figure 1: Growth i Mobile App Space Isurers have actively jumped o this mobile bad-wago. Most isurers have already rolled out various cosumer facig, producer orieted ad eve eterprise apps. We did a aalysis of the isurace apps available i the various app markets to fid out the curret adoptio tred (refer to Figure 2). Our aalysis idicates that providig value added services (such as accidet helper, fiacial plaig, etc.) are the highest priority amog isurers. Marketig drive mobile apps to share product/service iformatio ad promote a brad with customers ad prospects is a close secod. Quote/policy, makig paymets ad claims status are commo capabilities supported through the mobile chael by most leadig P&C isurers. Fiacial calculators ad recommedatios o how much life isurace is eeded are the key focus areas of mobile apps rolled out by Life isurers. Apart from the isurers, agecies ad brokers also provide apps directly to cosumers such as obtaiig quotes from multiple carriers. 4
US Isurace Apps across Isurace Value Chai 33% 19% 0% 20% 20% 8% 0% Product Developmet Marketig Distributio New Busiess & Uderwritig Accout Maagemet & Service Claims Value Added Service Figure 2: Isurace App Ladscape Isurace Opportuities The isurace value chai provides sigificat opportuities for isurers to develop ad deploy iovative mobile apps. The figure below illustrates represetative areas of iterest. I additio to these, there are various eterprise apps (such as access to HR data or competitive data) that leadig edge isurers are already ehacig for mobile eablemet especially for executives. Product Developmet Marketig Sales & Distributio New Busiess & Uderwritig Accout Maagemet & Service Claims Not very commo Collaboratio i product desig Aalytics to help i customer eed idetificatio Product/service Iformatio sharig Segmet focused promotios ad/or campaigs Social collaboratio Performace dashboards Access to customer iformatio & aalytical isight for sales team/agets o the go. Agets locators Performace dashboards Coverget apps Aget locator Quick quotes Sales illustratios Policy issuace Mobile telematics Coverget apps Performace dashboards Review policy ad other iformatio Bill due otificatios & Bill pay Self service Coachig apps Report claims Claims status Claim adjudicatio Repair moitor & status Locate preferred repair parters Figure 3: Mobile Opportuities i Isurace Value Chai 5
The opportuities ca be broadly classified ito three (3) user categories: Cosumer Apps: Cosumer apps eablig self-service will cotiue to evolve. While most orgaizatios today already provide services like Quick Quote or Bill pay, the idustry is goig to see more Coverget Applicatios with a sigle mobile app providig offerigs such as auto buyig through isurace ID card issuace or home search through buyig homeowers or reters isurace. Telematics is also likely to gai popularity as cosumers are ope to allowig isurers to collect dyamic drivig data if it ca help reduce accidet severities, improve claims processig times ad let them qualify for a favorable rate. Producer Apps: This chael will see the maximum developmet by isurers as well as producers o their ow. The greatest focus will be o usig tablet based solutios to provide Sales Force Automatio Tools such as mobile CRM solutios, ew busiess quotes ad illustratios as well as performace dashboards to optimize sales performace. Next i focus will be claims applicatios (reportig, adjudicatio) ad other customer servicig apps such as self service. Iteral Apps: This area will also see a rapid icrease i volume. Typical examples will iclude realtime alerts (such as catastrophe alerts for impedig coverage suspesios) ad aalytics dashboards for better decisio makig. Also i this category will be a icreasig umber of mobile applicatios providig access to trasactioal systems to support day-to-day activities for frot lie remote employees as well as executives Use Cases to Cosider Table 1 lists some of the idicative use cases that ca be cosidered for extedig a isurers mobile apps portfolio. We recommed developig a similar checklist to defie priorities i ay mobile adoptio roadmap priorities. This roadmap should be a livig documet that ca adapt to fast emergig advaces i mobile techology ad competitive ladscape. We recommed a quarterly or half-yearly review ad refresh of the roadmap to remai competitive i this space. Use Case Supported Features Busiess Beefit Brad promotio Customer acquisitio, growth ad retetio Sales Illustratio Improve the brad value by leveragig mobile ad social platforms Leverage the growig mobile & social aspects to kow ad coect with customers/prospects to improve growth ad retetio Eable sales teams ad agets to provide quotes ad/or sales illustratios based o idividual prefereces ad eeds of a customer Social marketig apps Eable olie commuity forums to promote brad ad share ew products/ services iformatio i a social way Social CRM apps Itegratio of eterprise CRM ad social etworkig applicatios (such as Facebook ad Twitter) to provide 3600 view of customer prefereces Sales Illustratio apps Beefit aalysis ad illustratio for variety of L&A products (such as Level Term, Uiversal Life ad Flexible retiremet auity products). 6
Use Case Supported Features Busiess Beefit Improvig wallet share Improvig wallet share Customer retetio Competitive pricig Service cost optimizatio Claims cost cotrol Aget maagemet Decisio support Ecourage cross-sell ad up-sell of various product offerigs Retai loyal customers by helpig them leverage your full parter ecosystem Improve customer loyalty Promote pay-as-you-drive to provide pricig based o drivig habits Reduce claims hadlig costs by ecouragig capture ad share of right claims ifo at right time Retai loyal customers by helpig them leverage your full parter ecosystem Maagig performace ad faster commissios paymet for agets to improve motivatio Improve aalytics lead decisio makig ad maagemet oversight Fiacial calculators Provide customers ad prospects with tools for their fiacial portfolio plaig Coverget apps Auto buyig or property search through to fiacig, loss reportig ad emergecy services Value added service apps Help customers take advatage of services such as fidig vehicle compariso iformatio, improvig drivig skills, travel/move plaig Pay-as-you-drive apps Provide idicative savigs iformatio by trackig user s drivig habits usig smartphoes to promote erollmet i pay-as-you-drive programs Isured portal app Use Near Field Commuicatio (NFC) based ID/membership cards to eable better itegratio with parter service providers, eable faster ad easier paymets, billig ad reewal alerts Claims reportig apps Wizard like approach to claims reportig with clear traceability of required loss/medical reports, tips ad preferred parter services itegratio. Use of visual represetatio ad augmeted reality to capture loss details ad cotext iformatio. Geosesitive iformatio ca also help i catastrophe moitorig. Aget maagemet apps Ability to moitor performace of agets i ear realtime as well as usig iovative techiques to make commissios paymets to agets Executive dashboard apps Providig earreal-time access to aalytics ifo, sales performace ad customer ifo to executives Table 1: Isurace Mobile Use Cases 7
Solutio Accelerators Table 2 presets a represetative set of mobile solutios accelerators that have bee prototyped i our Iovatio Labs. These prototypes have bee take to the ext level ad are i use by our early adapter customers. This further illustrates the poit that a isurer ca get started today o rollig out sophisticated but sustaiable apps to drive customer awareess ad loyalty. {Implicatios} TCS Solutio Accelerators Digital Marketig Platfor (Cubuzz) Mobile Sales Force App Mobile Life Illustratios Risk Aalyzer App Market Iformatio App DriveSafe App (Patet filed i Idia Patet Office o 28th April, 2011) Supported Features Itegratio with social etwork sites Ituitive & iovative platform to eable sharig ad searchig of product iformatio Customer setimet ad iterest moitorig Quick quote ad Life Isurace Calculators Itegratio of social etworkig sites such as Facebook, Twitter Sedig proactive alerts to agets (such as ew products, reewal otices) Takig otes ad maitaiig work list Provide comprehesive view of cash value ad iterest rates for Level Term, Uiversal Life ad Flexible retiremet auity products Display beefits usig iteractive graphs Perform what-if-aalysis o products Assess ivestor risk tolerace Scores the questios based o the optios selected by the ivestor Idetifies oe of the portfolios/products based o the ivestor s risk tolerace score Agets/brokers ca create ad maage a portfolio of isurers Outlooks from all three major credit ratig agecies AM Best, S&P, ad Moody s Solutio uses self-cotaied trasactioal database which is sychroized betwee offlie database ad eterprise server Detectio of drivig patters ad scorig Weather ad traffic alerts itegratio Itegratio with social etworkig sites to promote safe drivig Busiess Beefit Mobile digital marketig Improved customer coect Icreased productivity of agets Effective cross-sell/up-sell Improved customer experiece Builds customer cofidece i product offerig leadig to improved sell ratio Right set of products based o customer s risk profile leadig to higher customer satisfactio Improved agets/sales team performace Real-time access to curret, top quality data ad isight ito the fiacials of isurers to agets/brokers Create persoalized portfolios that eable quick access to the relevat data ad aalysis Promote adoptio of pay-as-you drive isurace 8
TCS Solutio Accelerators Loss Notificatio App Catastrophic Evet Mgmt App Supported Features 0 360 customer iteractio which eables real-time loss reportig ackowledgemet Locatio aware system doig prelimiary coverage verificatio before loss reportig Preset coverage ad policy iformatio i a uderstadable maer Locatio services to itegrate preferred parter service providers Geo-groupig of claims resultig i optimized assigmet of claims to Adjusters Digitizatio papers required i claims Ability of the Claims Maagers to review the work of all Field Adjusters i ear real-time Ability of Claims Maagers to sed weather alerts to policyholders proactively Busiess Beefit Reduced time to ackowledge the receipt of the loss report Miimize coverage issue related claim rejectio rate Improved customer satisfactio Provide value added services to claimats ( Garage, Towig, Medical Care Service Provider) Reduced claims processig cost Improved customer experiece Table 2: TCS' Iovatio Lab Solutio Accelerators Covergig Treds At this poit, we would like to highlight three covergig treds that will have a sigificat impact o the future of overall IT ad specifically the mobile roadmap strategy of isurers. Social Media Digital Marketig Olie Aggregators Social Media Social etworkig sites such as Facebook, Twitter, etc. have attracted millios of users sice their iceptio. Withi isurace, the major ifluece has bee i areas of marketig, customer commuicatio ad distributio maagemet. There are three distict models of adoptio Public Social Networkig Sites: Most isurers have a Facebook wall ad are also active o some other sites. Some of the isurers have also idetified themselves with specific social causes ad triggered commuity forums aroud such topics. Hosted Commuity Sites: May large isurers have also created ad hosted commuities o their ow sites to cater to specific eeds of their customers segmets. Cosumer Hosted Commuity Sites: This model is ot yet commo withi isurace space, but is pickig up mometum amog other idustry verticals. The IKEA commuity site, which is ru by IKEA cosumers, is a great example of this. 9
The covergece of mobile ad social media has provided isurers with a opportuity to stay coected with their cosumer commuity lear their persoal prefereces ad react to their setimets i ear real time. The locatio sesitivity that is eabled by mobile devices is goig to make a social presece more cotext-aware ad eve more critical. We recommed reviewig your CRM, mobile ad social etworkig strategies i uiso. This will allow you to derive a itegrated strategy that helps direct sales ad/or producers get a 3600 view of the customer or prospect. By movig toward a cotext aware perspective, affiity toward the isurer will be stregtheed ad persoalized offers ad services ca be provided. Digital Marketig Today, social presece is a key part of isurers digital marketig strategy. Mobile marketig is also gaiig i promiece. The covergece of the two presets real opportuities for isurers. But mobile advertisig has to be very differet from the website ads we are all used to. Isurers have to look for iovative digital ways of sharig marketig ifo with customers ad prospects that capture the target cosumers imagiatios. May isurers have adopted the rollout of focused marketig apps ad some have adopted the strategy of rollig out gamig apps to improve brad awareess. We also recommed bledig mobile aalytics ito marketig strategy to cotiuously measure ad improve the effectiveess of your mobile digital marketig iitiatives. Olie Aggregators Aalysts predict that olie aggregators are goig to play a major role i the future of olie isurace. Keepig this i mid the mobile strategy of isurers has to take ito cosideratio the eed to itegrate with ad also compete with such aggregator sites. We recommed desigig the backed services to support your ow mobile apps i such a way that they ca be reused i deliverig cotet to such aggregator sites. This will help esure uiform customer experiece across various commuicatio touch poits. Critical Success Factors The followig are the top criteria based o our aalysis of successful mobile iitiatives amog our customers across idustry domais. User Experiece Scalable Architecture Sustaiable Support Model User Experiece User experiece is the sigle decidig factor i adoptio of mobile apps. With a high umber of app optios available to the cosumer, the producers of the App (isurers) are faced with a real challege of fidig ways to esure high cosumer adoptio. We did a quick survey of customer feedback o existig isurace apps i the various app markets. Figure 4 shows our fidigs of the recet user ratigs. 10
Figure 4: User Ratigs of Isurace Apps The most popular apps o the Apple AppStore have ratigs of 4 ad above. Thus, the vast majority of existig isurace apps have room for improvemet. I a space where bechmarks are established by cool gamig apps such as Agry Bird, the isurers have to adopt a strategy of leveragig the ative device capabilities to provide rich user experiece. The TCS mobility group has a dedicated usability desig team which focuses o all aspects of user orieted desig ad works closely with leadig edge exteral desig firms to create device specific user iterface desig best practices. A simple but rich user iterface desig which avoids complex user iteractios while leveragig ative capabilities are key compoets of best desig practices. To keep cosumers egaged, isurers eed to excite them about their apps through regular refresh of cotet, cotiually addig more iovative features ad costatly improvig their experiece. Emergig capabilities such as augmeted reality, NFC, locatio services, etc. ca be used to provide iovative cotext aware solutios i both the sales ad servicig spaces. Scalable Architecture With usability as the top focus for better adoptio ad multi-device strategy a must have to cater to a fragmeted cosumer base are agile ways of eablig core fuctioalities o multiple device platforms. The curret app market is domiated by Adroid, ios ad RIM OS with aalysts predictig that Widows based phoes will joi the leaders soo. The tablet market is also likely to see more iovatios ad chages at a rapid pace. Other emergig techologies such as Kiect XBox may play a role i motio drive apps. This ever chagig ladscape has give rise to two commo treds (a) mobile web apps ad (b) platform (Mobile Cosumer Applicatio Platform ad Mobile Eterprise Applicatio Platform) solutios. Mobile web solutios lack the sophisticatio ad richess a ative app ca provide ad hece score low o usability. This is ot to say that focusig o mobile web developmet is ot a appropriate strategy. For example, cosumers lookig for a isurace quote are ulikely to dowload apps from multiple isurers o their devices to obtai quotes ad compare. Havig a mobile web solutio that allows 11
prospects to obtai a quote with oly a few clicks still ca be a worthwhile approach. We recommed limitig mobile web fuctioalities to oly those capabilities that require availability to a wider user base targeted at mass market (o smart phoes) ad ot strictly limited to affluet (smart phoe) markets. The TCS mobility team has developed a Proxy Cliet Architecture model for mobile developmet that follows the core architecture priciple of separatio of cocers. This model helps localize the use of ative device features ad OS specific APIs to a thi rich cliet o the device. The core busiess logic resides i a commo server layer that serves the requests from the device cliets through a proxy. This also restricts the eed for iche OS specific app developers while helpig isurers leverage their existig web teams to developig the core fuctioality to be exposed. The model also helps i adoptig prove architecture priciples such as multi-level autheticatio, process orchestratio, service itegratio, data ecryptio ad storage which are critical for log-term sustaiability. This approach will help isurers roll out fuctioality o multiple devices at a faster pace ad eablig easy maiteace. Maagemet of the various smartphoe ad tablet devices o which eterprise applicatios will be made available for iteral employees ad/or parters is a top priority for isurers. Mobile Device Maagemet solutios (such as GOOD Techologies) eablig remote maagemet of devices, security ecryptio of data stored o the devices ad wipe (full or partial) of data i case of lost/stole device has to be a key compoet of the architecture strategy for mobile adoptio. Sustaiable Support Model The mobile jourey begis with the rollout of that first app ad the requires ogoig deep ad sustaiable support expertise. There are three key aspects to achievig sustaiable support: Focus o the most iovative busiess processes i a prioritized maer to deliver maximum values to cosumers, producers, parters ad employees Establish a factory like delivery model that allows for the best leveragig of iche OS developers skills, web ad itegratio skills ad mobile testig skills all i a assembly lie fashio that delivers busiess solutios with a high degree of agility Cotrol ad categorize the devices to be supported for all employees all the way up to seior executives eablig varyig service levels for the help desk ad support teams TCS has established a dedicated mobility practice to support this growig market eed. Head-quartered i Sata Clara (CA), it has established focused delivery ceters at Sata Clara, Milford (OH) ad seve Idia cities. The team brigs uique experiece ad itegrates closely with domai focused iovatio labs to pilot ew solutio ideas ad deliver best i class solutios. The group has established strog relatioships with parters such as Apple, RIM, Motorola, Microsoft ad Oracle. With 12 years of experiece i mobile computig ad 40+ years of deliverig applicatio developmet ad support services for customers across the globe, the mobility group is positioed to provide world class ed-to-ed services from strategy to implemetatio. 12
Coclusio The dyamic growth i mobile apps is drive by growig expectatios from cosumers; producers, parters ad employees requirig isurers to develop a robust mobile adoptio roadmap. This model eeds to be scalable ad sustaiable to achieve the twi goals of growth ad profitability. Isurers should review their processes as well as complemetary value-added services to look for opportuities that ca improve all participats experiece ad productivity. Attetio to the three critical success factors discussed i this paper should be at the heart of defiig ad puttig i actio a successful mobile strategy. Oce created, this roadmap should be a livig documet that ca accout for fast emergig advaces i mobile techology ad respod to the competitive isurace ladscape. TCS is lookig forward to joiig isurers o this jourey ad sharig the experiece of our leadig edge customers who are already pushig the frotiers of mobile busiess ad techology with us. Ackowledgemet We are thakful to TCS teams from Domai, Iovatio Lab, Mobility Practice ad various mobile projects that have provided valuable iputs ad isights i creatio of this paper as well as the idustry aalysts that we are workig with. Refereces [1] Idustry aalyst reports ad aalyst iteractio otes [2] Mobility Maagemet News ad Blogs [3] mobiready (http://ready.mobi/lauch.jsp?locale=e_en) [4] Apple App Store: http://itues.apple.com [5] Adroid Market: https://market.adroid.com/ [6] RIM's AppWorld: http://appworld.blackberry.com [7] Nokia's OVI Store: http://store.ovi.com [8] Widows Phoe 7 App: http://www.appsfuze.com 13
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