Life Insurance Mobile Apps for Producers in Latin America: A Shy Step Forward

by Luis Chipana, October 19, 2016
Product Trends/ Reviews
Latin America

Abstract

Celent has released a new report titled Life Insurance Mobile Apps for Producers in Latin America. The report was written by Luis Chipana, an analyst with Celent’s Insurance practice.

Producers are the most significant channel for life and health insurance in Latin America. Overall, there are more than 202,000 producers or agents in the region, 20% more than two years ago, and they are selling around 85% of the premium in the region.

In 2014, Celent explored the produced-focused app offering in Latin America and learnt that 2% of insurers in the region had developed this technology for producers. In this edition, Celent revisited each insurer’s website in the Latin American region and revised the apps they had available by Q2 2016. We reviewed Apple’s iTunes App Store, Google Play, BlackBerry World, and Windows App store in search of apps provided by Latin American insurers and analyzed the type of functionalities available.

Celent gathered data on 172 life and health Latin American insurers in 20 countries and determined the number of apps in the market, features, and processes supported. Through a review of mobile apps and case studies from around the world, Celent offers a possible short-term path for insurers and provides an outlook for the future
 
Life and health insurance apps for producers are now found in 9 out of 20 countries. Only 14 insurers (or 8%) out of 172 are offering a total of 22 producer-focused apps.

At a country level, availability ranges from 10% to 30%. Producer-focused apps offer a variety of functionality such as sales and marketing, policy servicing, self-reporting tools, inquiry tools, general information, and communication tools. Although the producer-focused apps are rated 4.4 out of 5 (considering Android only), reviews show that there is still work to do on performance and to meet customer expectations. Most insurers are failing in both areas.
 
“The growth of smartphone users and the growth of the sales forces in the region have insurers rethinking and redefining better ways to serve the producers through digital channels, channels in in which mobiles are important components,” commented Chipana.

“About 8% of insurers in Latin America are offering producer-focused apps, and the majority of insurers in the region are interesting in investing in mobile technology for producers,” he added.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

 

Method

3

Drivers of the App Market for Insurance Producers

5

 

The Need for Newer and More Efficient Tools

5

 

Demand for More Devices

5

 

Scalable Technology

6

 

Producer User Base

8

Mobile Apps Availability

10

Insurance Producer App Functionality

10

 

Impact of Apps on Productivity

10

 

Characteristics of Available Mobile Apps

13

Customer Experience and Rating

19

 

Customer Experience

19

 

Apps in the Region

20

How Will the Future Look?

22

Conclusion

24

Leveraging Celent’s Expertise

25

 

Support for Financial Institutions

25

 

Support for Vendors

25

Related Celent Research

26

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