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MOBILE

MOBILE APPS ARE EVERYWHERE


EXCEPT IN THE INSURANCE INDUSTRY

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Mobile technology brims


with potential to transform
the insurance business. But
only a handful of insurers
are working to harness it.

By Chris McMahon

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cross the value chain, no other technology has more potential to transform
how people interact with corporations than mobile. Mobile devices and apps
provide immediate access to contextually relevant information, speed tasks
and increase productivity by putting tools and other problem-solving capabilities into their users hands. And these applications are seemingly everywhere
-- except in the insurance industry.
Mobile applications that leverage the unique capabilities of smartphones, tablets and phablets are still rarely used among insurers, according to studies like Benchmarking the New
Normal: 50 Advanced Capabilities for P&C Insurers, a report from the insurance technology
analyst firm Novarica. According to the survey:
For claims, just six percent of P&C insurers provide mobile first notice of loss (FNOL)
apps with video, GPS data capture and pre-fill, with another 19 percent
planning to offer mobile FNOL applications this year.
For field adjusters, a mere five percent of P&C
insurers make use of apps that leverage mobile
device GPS, audio and video capabilities, with
another 11 percent planning to deploy similar
applications in 2015.
For producers, only 8 percent of P&C insurers have widely deployed mobile apps or
mobile-optimized Websites to provide access
to their books of business or sales manuals,
while another 23 percent plan to do so in
the next year.
For customers, apps to view relationship
details, balances and key documents are widely
deployed by just 18 percent of P&C insurers, with another 29 percent planning to do so during the course of 2015.
Mobile is where the money is, mobile is where the consumers are spending their time, and a lot of industries now
have a mobile-first mantra, says Jeff Goldberg, VP of research
and consulting at Novarica. Most companies are in a mode
where they build for the mobile channel first and worry about
your Web applications and everything else later, he adds.
But that approach, he notes, is frequently not the case for
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the insurance industry more than half of carriers still have no

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ity, assess their skill sets and quality scores, and then assemble and deploy
hundreds or thousands of appropriately trained and experienced teams
to devastated areas.
Once the adjusters
are on site, they use
the CAT Connection
Crawford & Co: Making the Most of Mobility
app, in tandem with
Over the past two years, Crawford & Co., a provider of claims
mobile device camera
management services, has created more than 30 mobile appliand voice recording cacations to increase the speed of decision-making and respond
pabilities, to speed the
faster to its customers.
claims process.
These are enterprise-class applications, according to
Adjusters used to
Brian Flynn, global CIO and executive vice president of Crawgo out with a tablet
ford, and their return on investment has been substantial,
of paper; then, theyd
as the suite of customized of mobile apps has dramatically
come back and key it
increased Crawfords workforce productivity. Weve had
into a computer, Flynn
an 81-percent improvement in field processes and a 90-persays. Today were able
cent improvement when we combine these applications with
to do that instantacall-center operations, and a 41-percent improvement in cerneously while theyre
tain processes in one of our subsidiaries, Flynn reports.
still at the site. And
Mobility has gone a long way to improve customer expethen payment is on its
rience as well, Flynn continues. In the past, we had a call
way. For major hurricenter. Wed have dozens of people picking up the phones and
canes, it used to take
calling people one by one; missing them, getting calls back,
our company six to
and not being able to answer the calls, he explains. But today,
eight months to close
using the Crawford Desktop system along with a suite of moout all the claims. Tobile apps -- including one for field personnel called CAT Conday it takes us two to
nection -- most of that process is automated, making use of
three months.
embedded business rules and social media.
Crawford developed
Another example is Crawfords Site Assessment app, which
its suite of mobile apps
automates claims assignments and scheduling using GPS
using the claims develcoordinates based on adjuster locations. Flynn says the app
Crawford & Co.s is leveraging mobile to help its field personnel
opment platform from
was developed to help Crawford better respond to clients who quickly assess and respond to claims. Reduced paper use has cut
Appian, a provider of
expect
to claims response time by as much as a third, says CIO Bryan Flynn.
business process manget a report
within 30 minutes agement (BPM) software. Flynn says that the developers agile developof reporting a claim. ment methodology and BPM capabilities cut Crawfords development
Now, he says, We time in half.
Something like that would have taken us two or three times lonknow when somebody is in a neighbor- ger without Appian, he says. In past years, you might find a CIO sayplans for mobile implementations. While that may seem like the glass is
half empty, its also half full: Within the half of the industry that is actively
planning to deploy mobile applications, there are a handful of early adopters that are already using these technologies to good effect.

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Weve had an 81-percent improvement in field


processes, and a 90-percent improvement
when we combine these applications with
call-center operations.
Brian Flynn, global CIO and executive vice president, Crawford & Co.
hood, and we can automatically assign that claim.
Because it has an international clientele, Fairfield, N.J.-based Crawford is
constantly monitoring global weather patterns, on the lookout for catastrophic events. In the event of a hurricane, for example, the service provider can use the Site Assessment app to determine its adjusters availabil-

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ing: Were developing our systems for the next 10 years. Well, we dont
develop systems for just the next 10 years. We develop systems that have
ultimate flexibility, so that they will be able to morph week in and week
out, month in and month out based upon the demands our clients bring
to us.

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Flynn reports that the Appian platform also helped Crawford squeeze
more value out of its traditional systems, while incrementally replacing
components of its legacy technologies. Were bringing more and more
components out of the legacy into the new; were probably midway
through the retirement of our legacy systems, he says. Ultimately, the
legacy will be an empty shell and well just shove it aside. Thats one of
the powers of this: You dont have to wait two or three years for a major
application development and deployment. You can do it in phases.

ACE Group: Becoming Proactive

including a database of 3,500 contractors throughout the U.S. and Canada, as well as a database of state and provincial regulatory requirements.
ACE Alert also uses a mobile devices geo-location features to identify where the device is when the incident is reported, reducing potential
uncertainty over the spill location and speeding response times. The app
also provides the ability to send customized email and text messages to
distribution groups pre-selected by the customer. The user can also attach
photos and documents, creating reports in real time.
Since ACE has rolled out the mobile FNOL program, it has received
claims for 30 to 35 spills. With environmental risks, if you dont get involved at the very early stages, and if it goes off in the wrong direction, it
takes a long time to turn around, Winterburn acknowledges. By getting
involved early, were able to mitigate the situation quickly, control the
costs and limit the liability. Theres a definite cost savings there.
Next steps for ACE Alert include support for multiple languages and
contingency planning to help customers better manage their risks. The
systems already designed to evaluate what language the users phone is
programmed to and to transfer FNOL calls to native-language speakers,
Winterburn reports. We submit a survey after every incident and have
gotten very positive feedback from everyone. They like the ease of use and
the connectivity.

ACE Environmental Risk, a division of the ACE Group, insures customers against hazardous spills occurrences where the liability can be huge
and response times are critical. To reduce the size of the first and accelerate the latter, the insurer developed ACE Alert, a mobile FNOL application.
The insurers customers are mostly truckers that haul hazardous materials, and companies with pipelines or underground storage tanks. A
typical claim involves a vehicle rollover spilling diesel fuel or a load of
hazardous material. ACE Alert allows customers to immediately report
chemical spills 24 hours a day, seven days a week, by phone, the Web or
with a mobile device, explains Bob Winterburn, assistant vice president
and the apps architect.
When it comes to environmental risks and accidental releases, most
carriers are reactive, and its the customers who are proactive, Winter- Barriers to Adoption
burn says. The ACE Alert app is a key part of an initiative by ACE EnvironGiven the multiple benefits of these mobile solutions and solid results
mental to turn that dynamic around.
achieved by early adopters like Crawford and ACE, why arent more insurWith a typical environmental claim, the customer imers jumping on the mobile bandwagon?
mediately gets involved, as its the customers material
One reason is the varied needs of different types of inthat has been spilled, its employees are the ones reporting
surance producers. Training, equipping and supporting
the event and the spill frequently occurs on the customindependents versus captives requires what amounts to
ers site. Very often, the customer will work with contracseparate technological infrastructures and has slowed intors to coordinate the cleanup and then submit the claim
dustry adoption, contends Tony Jacob, manager of Microafter the fact.
softs Worldwide Insurance Team.
Often, the insurers reaction is, Why did you spend
Mobility is sometimes more and sometimes less comso much? Why did you do this? Winterburn explains.
pelling, depending upon the type of producer, his role and
Theres a lot of Monday-morning quarterbacking, and it
the business scenario, Jacob says.
creates contentious relationships between the carrier, the
Data security is also high on the list of insurers coninsureds and the contractors.
cerns, as mobile devices would likely provide access to
With its new mobile FNOL app, What weve designed
a large amount of personally identifiable information.
is a much more proactive program that allows us to get
There are a lot of concerns about the security profile of
involved within the first minutes, if not seconds, of an inmobile devices and the fact that youve got to add another
cident, Winterburn says.
management stack, Jacob says. Devices from Microsoft
Once engaged, the insurer can help the claimant coand its OEM partners address this issue with the use of
ordinate the cleanup process, identify contractors and
the familiar x86 architecture and eight-key encrypted
understand what needs to be done with regard to scope
hard drives. This allows for both software and hardware
and personnel. It alleviates a lot of the issues on the
encryption when connecting to business apps behind the
back end with invoice negotiation, Winterburn says.
firewall, and gives the slate or the tablet basically the
Its really a win-win-win for the insurance company, the
same kind of security profile and manageability as a lapinsured and the contractors, because theyre able to get
top, he says.
paid quickly.
Another reason for the slow uptake has been insurers
ACE can receive an FNOL via phone, the Web or the ACE Alert allows customers to
limited experience with mobile applications, notes Mark
new mobile app, which generates the fastest response. A immediately report chemical spills
McLaughlin, IBMs global insurance director: Mobile
typical response time for us getting back to the insured on from a mobile device, which allows
gets them into a whole new set of capabilities, but its big
for instant response from the
the Website is one to two minutes. The average time for insurer or its claims management
and expensive and theres a learning curve. When its one
us getting back to an insured on the app is roughly 30 sec- partners.
app, its not that big a deal. When its 10 apps and thats
onds, Winterburn says. The response can come directwhere this is going its just like supporting PCs.
ly from ACE or from Spill Center, an environmental claims management
McLaughlin says that insurers are only now really beginning to apprecompany employed by ACE.
ciate the opportunities to differentiate themselves via mobile applications
Spill Center provides the technology backbone that supports ACE Alert, as a way to have more and different sorts of interactions with their cus-

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tomers. Our customers and agents are going to demand these styles of
interactions because that is what they are getting everywhere else, he
says. Beyond that, what were really talking about is the opportunity to
completely revamp the insurance business.
As an initial foray
into mobile for producers, many insurers, especially those
with
independent
agents, are pursuing
Web-app strategies,
Jacob says: Think
about the functions of

it as a deck of more than 100 slides, including every product that agent can
sell. The agent sits with the customer and goes through their needs, he
explains, and the system tailors suggestions. This supports their ability to
sell a more complicated product more quickly.
In partnership with Apple, IBM has launched its Retention app, designed to put customer-contact information and advanced decision-making capabilities into the agents hands so they can service their customers
more quickly and effectively.
For example, if a customer calls his agent to report that a wind storm
crashed a tree into the insureds home, the agent no longer needs to
go to the home office and pull the customers file before responding.
Thats what they used to do. Or, they would cart around a bunch of
out-of-date paper files in their car, McLaughlin says. Now they can just

Mobility is sometimes more and sometimes


less compelling, depending upon the type of
producer, his role and the business scenario.
Tony Jacob, manager of Microsofts Worldwide
Insurance Team
agents: They need a form, to create a quote or look up customers contact
information, renewal date or premium. A Web app can suffice for that.
The Web-app approach is compelling, Jacob says, because it simplifies
deployment and sidesteps hardware issues, which insurers have little control over with independent agents.
The trade off, he admits, is that the speed, efficiency and quality of
presentation can vary across devices, screen sizes and operating systems.
Given that they can dictate hardware, operating system and software
requirements, insurers with captive sales forces may have more incentive
to develop native apps. This approach allows for more control and more
efficient use of the hardware and the peripherals.

say, On my way. When they get there, they know exactly what coverages
that customer has.
The value of such applications is increasing as insurers replace an aging workforce. The problem a new agent faces is they dont know that
much, McLaughlin says. Theyre trying to learn the products; theyre
new to cold calling and prospecting. Its a very difficult job, and our industrys agent retention rate for the first 10 years is not all that high.
The analytics component of the Retention app can prompt agents to
action and help them prioritize tasks. For example, if a customer has recently let a policy lapse, the app will alert the agent that the customer is at
high risk of attrition and push the customers phone number to the agent,
along with the customers preference
for text messages.
Thats how you marry the insight
from the home office to the agents in
the field, McLaughlin says. We want
our agents, when theyre talking to
customers, to know and to take the
next best action. Its not just a fancy
analytics report. They can take action
immediately because its on their mobile device. This is about rethinking
how the agent can provide better service. And if we can coach them in real time and get them to ask the
right questions or make the right offers or just know the customer well
enough to express the right concerns, then weve moved the process
forward immeasurably.
Ive talked to some of the large insurers, and the senior end of their
workforce, frankly, doesnt want to be bothered with all of this, he concludes. They just want to collect their commission checks and play golf.
But for the ones that are willing to move forward, these tools can really
help. Think about how insurers are expanding lines of business. Having
these sort of insights can accelerate progress in that expansion.

A typical response time for us getting back to the


insured on the Website is one to two minutes. The
average time for us getting back to an insured on
the app is roughly 30 seconds.
Bob Winterburn, assistant vice president, ACE Group
But with either of those approaches, You finally get to a point where
you can do one version of the app architecture, one version of the business logic, and you can deploy it across multiple devices, Jacob adds.

Beyond the Basics

While many insurers are only now trying to deliver the basics to agents,
such as customer profiles, contact information and history, a few are extending their producers apps to include decision-making capabilities.
Seismic Software, a Microsoft partner, for example, now offers a customer needs-assessment app, delivered through the cloud. Jacob describes

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