PROPERTYSPARK ARTICLE

The Future of InsurTech: How Mobile Apps Are Leading the Charge

The analysis of the market

The global market has generated more than five and a half billion dollars this year. And its average annual rate of growth is expected to be over 3% during 2024 and 2029. The driving force of such growth is a simplified claims process, improved client communication, and opportunities to implement automation. The health insurance market is the fastest growing since the adoption of insurance technologies is significantly higher as compared to other sectors.

Innovation and unique solutions are distinguishing factors that help to improve the insurance value chain. These factors help to attract funds both from traditional players and investors. The most important thing is that InsurTech companies help companies to meet the demands and wishes of clients. Future-oriented companies make bets on the development of an insurance app to enhance client satisfaction.

How mobile insurance apps are reshaping the industry

Seamless management

Since people insure themselves and their property, there’s a lot of paperwork. And sometimes it might be a nightmare to find specific policy details among others. Now these days are gone. Apps allow users to do the following things:

1. Buy and renew policies in a matter of minutes;
2. Get access to digital versions of their insurance cards;
3. Monitor policy status and coverage limits.

For instance, well-known Geico Mobile and Progressive’s Snapshot apps allow their clients to manage their car insurance policies without much effort. They offer users to take advantage of payment reminders and claims tracking.

Filing insurance claims with ease

If you’ve ever filed an insurance claim, you know that it has always been a tedious and frustrating process. Insurance companies can simplify this with an insurance app and make clients’ lives simpler in this regard. Here’s what you can offer in your app:

• A step-by-step guide on how to file claims. It can be an instruction or even a short video tutorial since video helps improve perception;
• Uploading photos and documents right through the phone. By using smartphones, clients can directly upload all the necessary documents without going anywhere;
• Real-time updates on claim status. There’s no need to call an insurance agent when there are updates right in the mobile app.

According to Accenture’s survey, more than 70% of customers prefer to process claims digitally rather than in a traditional way. The most important thing is that it’s not only the wish of a younger generation but people of 50 years and older.

Personalization brought by AI

Historical data on clients’ preferences and lifestyles can be of paramount importance on the way to personalization. Nowadays, many companies use artificial intelligence to process large data files to get insights. The insurance industry is no exception since algorithms can process client data to suggest policies or predict coverage needs.

Not only does AI bring insight but it also can help process information much faster. For example, Lemonade provides homeowners and renters insurance. Their app powered by AI processes claims in around 3 minutes.

Provide insurance as soon as and whenever required

On-demand insurance is no longer a fantasy. It’s a reality where people can purchase coverage for specific durations and activities. They can use mobile insurance apps to insure activities like traveling, ride-sharing, or purchase event coverage.

Freelancers and gig workers take advantage of Trōv to purchase short-term insurance for sporting equipment, electronics, etc.

Integration with wearables and IoT

The integration of apps with such devices is a revolution. It creates a whole new wave of preventive insurance services. Depending on the insurance services a company provides, they can significantly increase client satisfaction and engagement.

Health insurance apps can get in sync with fitness trackers. By monitoring activity levels, companies can offer their clients discounts for healthy behaviors. Moreover, home insurance apps can synchronize with IoT devices like water leak sensors or smart smoke detectors. In such a way, it’s possible to prevent accidents.

What the future holds

Now, users can do all these things with advanced mobile insurance apps. They might already seem unreal. However, an even greater future is awaiting the mobile insurance app field. Here are some technologies will see shortly:

• Blockchain. This technology will enhance transparency. This will help to reduce fraud and strengthen users’ confidence in insurance companies;
• Voice and chatbot integration. Fast customer support is an ace in the hole for business in all industries. Voice assistants and chatbots will play a major part in creating a competitive advantage;
• Hyper-personalized coverage. Personalization will be taken to the next level in the future. Firms will use real-time information to adjust coverage dynamically;
• Gamification. With gamification elements, users will be able to earn rewards and get discounts on insurance services. For example, drivers can get rewards for safe driving and users can get discounts for achieving their fitness goals;
• Robust security measures. Security concerns are a top priority for people using insurance apps. Users will give more preferences to apps with biometric authentication and encrypted data storage.

Certainly, collaborations with tech companies can drive innovation. Insurance companies should invest in the development of tailor-made insurance apps to meet the expectations of their clients.

The bottom line

Mobile insurance apps are at the forefront of InsurTech transformation. These apps are making insurance more accessible by seamless management, fast filing of insurance claims, personalization features, on-demand insurance, and so on. As we see prompt tech advancements, mobile insurance apps will become more innovative and inclusive. People of all ages prefer digital platforms and apps to traditional services. However, most importantly, companies should invest heavily in incorporating robust security measures to prevent fraud and identity theft.