What is the future of apps for insurance companies?

This article was written by: 
Ashley Lipman, a content marketing specialist.

As the pandemic boosted the demand for mobile apps, it is becoming clearer than ever that a high-quality app is a must for any company that wants to stay competitive. Insurance apps are no exception, only in this case, the service could transform the industry. Find out how apps helped insurers nurture contacts, and how snapping a pic of the damage on your car can help you save thousands of dollars.

How Insurance Apps Work and Why We Need Them

Around 74% of insurance agencies allow their policyholders to manage their policies and even file claims in-app. Users are encouraged to make payments and keep track of renewals using insurance apps and email marketing. The moment your car insurance policy is about to expire, for example, your triggered email sends a message reminding you to renew it. Additionally, you get a chance to upload any new documentation on your car in-app, such as winter tires, adding a driver once your kid learns how to drive, etc.

On a darker note, the moment you get into a mild car accident, you can snap a pic of the damage to your car or person, and upload it in-app, for your insurance agency to see. How do you know you should or can do this in the first place? Before selling you auto insurance, your insurance agency will likely inform you of the various functionalities of your app, and how they work together with your policy. Apps end up improving communication between insurance agencies and policyholders and helping people understand their rights and obligations.

How Apps Help Insurance Agencies

While staying competitive and fighting for your place on the market is a good enough motive on its own, there are many more advantages apps can offer insurance agencies. Regular surveys help insurers understand what they are doing right, and where they can improve. In-app rating systems encourage policyholders to send feedback and explain their frustrations with the service at hand. Additionally, some apps encourage satisfied customers to write up short, positive reviews on online ranking platforms. Positive comments and reviews eventually improving the company’s reputation, even their online visibility. Moreover, in-app renewal reminders and offering cross-sell and up-sell deals to satisfied customers help insurance agencies reach higher premiums. Eventually, this is how apps can help insurance companies develop and enforce profitable nurturing programs.

How Apps Help Policyholders

Aside from the obvious advantages such as making payments in-app and being able to check your policies from your phone, insurance apps offer a variety of valuable functionalities for policyholders. In-app renewal reminders and short, educational blog posts, for example, help policyholders get reimbursed fairly when they need insurers the most. Imagine, if you will, that you have renovated your kitchen, adding granite countertops, and new, ceramic tiles. Before you are in for a policy renewal, your app can remind you of adding updates! Many people don’t and as a result, they are in for an unpleasant surprise when they need it. This transparent and proactive communication, though largely automated, helps policyholders get their value for money.

The Future of Apps for Insurance Companies

Today, apps are an indispensable resource for most insurance companies. In the future, they will likely become a key ingredient in bridging the communication and information gap between insurance companies and policyholders. Wise use of in-app interaction with policyholders can help insurers improve the quality of their service, and close more deals. On the policyholders’ side, apps can prove useful in the much-needed education they need on their rights. Learning about the specifics of your insurance policy only after something went wrong and you need to fire a claim is a situation all parties want to avoid. Apps will be a key contributor to making this happen.