Mobile Usage in Auto Insurance in China

by Wenli Yuan, June 30, 2014
Industry Trends
Asia-Pacific

Abstract

Mobile usage by insurer staff for claims is relatively broad. Although mobile is not yet seeing much traction in other internal functions or among customers, Celent expects its use in auto insurance to expand in the coming years.

Mobile devices have been used in various aspects of auto insurance in China. In the report Mobile Usage in Auto Insurance in China, Celent looks at mobile apps and WeChat accounts used by insurance companies in auto insurance sales, service, and claims.

  • Sales: Some insurance companies provide car insurance via mobile app or WeChat. For customers, it is a more time-saving and convenient way than going to agencies or brokers or branch offices to apply; for insurers, it is an effective way to reach more people.
  • Service: Beside service such as policy inquiry and claims inquiry, insurers provide many services to all prospects. By providing general car and location service, insurers can attract broader potential customers to download and use the mobile app or use the WeChat account, and then they have the opportunity to convert prospects to clients.
  • Claims: Auto insurance claims field investigation staffs in many companies are now equipped with mobile devices such as mobile phones or tablets to support loss assessment. After providing field staff with mobile devices, some companies introduced mobile apps for customers; some apps include a self-claim function. Mobile app use by field staff and customers has streamlined the claims process.

WeChat is a mobile text and voice messaging communication service developed by Tencent in China and released in January 2011. Since the app published, the number of users has grown dramatically. The average monthly growth rate of WeChat users from May 2011 to March 2014 was 13.7%.

Source: Wikipedia, Celent

More than 20 insurance companies have official WeChat accounts. “Insurance companies treat WeChat more or less as a marketing platform because it has a large number of users,” says Wenli Yuan, Senior Analyst with Celent’s Asian Financial Services Group and author of the report. “When providing service, such as claims, insurance purchases, or policy renewal, insurers prefer mobile apps, which have stronger functionality and better management capability.”

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

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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

Introduction

2

 

Growth of Vehicles

2

 

Growth of Motor Insurance

4

 

Floating Premium Rate

5

 

Auto Insurance Information Exchange Platform

5

 

Internet Users and Mobile Internet Users

7

Mobile Apps Used in Auto Insurance

7

 

Mobile Apps Used in Purchasing

7

 

Mobile Apps Used in Service

9

 

Mobile Apps Used in Claims

9

WeChat Used in Auto Insurance

18

 

Growth of WeChat Users

18

 

Uses of WeChat in Insurance

18

Third Party Platforms

21

Conclusion

22

Leveraging Celent’s Expertise

24

 

Support for Financial Institutions

24

 

Support for Vendors

24

Related Celent Research

25

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