Life Insurance Mobile Self-Service: Why Are You So Far Behind?

by Karen Monks, February 26, 2015
Industry Trends
North America

Abstract

Celent finds that life insurance mobile platform offerings are far behind the self-service offerings on websites. Functionality on mobile devices is split between native mobile apps and mobile-friendly websites. In the case of mobile-friendly websites, most are facades for the full website, meaning available functionality is through a hyperlink to the full site, which is not optimized for use on a mobile device.

In the report, Life Insurance Mobile Self-Service: Why Are You So Far Behind?, Celent performed an online review of the top 50 individual retail life insurance product mobile offerings in Q4 2014. We searched the major app stores and the life insurance websites to determine if the insurers offered mobile apps. Additionally we searched mobile phones and tablets via browsers to discern if mobile-friendly websites were available

Celent’s review found that 24% of the top life insurers have customer-focused mobile apps geared towards life insurance or annuities, while 28% have mobile-friendly websites or at least sites optimized for a mobile device. There is overlap, as some insurers offer both a mobile app and a mobile-friendly website.

“For the most part, Celent found that some insurers are taking the easier and less expensive path of either doing nothing or developing mobile-friendly browser-based functionality tied to their existing websites,” says Karen Monks, an analyst with Celent’s Insurance practice and author of the report. “For customers who desire access to the insurer on a mobile platform, this is not good news because using websites not optimized for a mobile platform is both difficult and frustrating.”

This report examines mobile apps and mobile-friendly websites to determine the availability of a number of key features and functions. The current mobile device functionality is compared against past Celent research on functionality desired by customers. Using a scorecard, Celent rates the life insurance industry to determine what progress life insurers have made in offering self-service functions on phones or tablets.

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

3

 

Background

3

 

Method

5

Life Insurance Customer Self-Service: Web Vs. Mobile

7

 

Functionality Available on Mobile Devices

7

 

Basic Mobile Platform Functionality

9

 

The Digital Life Insurance Lifecycle

10

Changing Priorities

15

 

Mobile Devices Vs. Personal Computers

15

Final Thoughts

18

Leveraging Celent’s Expertise

19

 

Support for Financial Institutions

19

 

Support for Vendors

19

Related Celent Research

20

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