Why The Future Of Insurance Will Be Mobile And What Will It Mean For Insurance Business Models

Ellen Carney

Anybody out there who doesn't have a mobile device, raise your hand...just what I thought.

The explosion of mobile phones and apps in the everyday lives of consumers--and agents--is powering big changes in the business of insurance.  Heightened customer expectations are getting formed by the changing mobile landscape; new generations of customers; new competitors, and the ferocious pace of mobile tech-enabled innovation that is radically reshaping how customers become informed, purchase, and get service. 

In our new report, the first of Forrester's Mobile Insurance Playbook, we examine how mobile forces are driving customer expectations and how customer demands are going to influence new insurance business models.

Consider that:

  • Consumers are living La Vida Mobile.  Mobile is a pervasive element in the daily lives of insurance customers. With more mobile devices available within easy reach, US consumers are tapping into this ready convenience to research, buy, and service their financial needs, including insurance.  And how about those Millennial insurance customers?  More than one in four told us that they use mobile as their main personal financial channel. 
  • Agents are becoming proficient mobile tool users.  The tablet form factor looks almost purpose-built for the needs of agents.  From their hi-def displays to fast boot-up and super portability, agents are ardent tablet-ers, and half the agents in an informal survey at the end of last year cited mobile as one of their leading business initiatives. 
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Telefonica Digital: Only A First Step Towards Transforming The Telco Business Model

Dan Bieler

I recently attended an event in London where Telefonica shed more light on its Digital division. Digital is the central division driving innovation at Telefonica group and was formed in September 2011. However, Telefonica, despite the creation of Digital, still is somewhat in the old telco mold of inside-out innovation.

Digitization is undoubtedly a major theme affecting both society and the economy, bringing huge implications for communication, collaboration, consumption, and production. The big focus areas for Digital are e-health, digital content distribution, security, cloud, M2M, OTT comms, financial services, and advertising. In this respect, Digital is the right answer. My main observations from the event are:

  • Digital’s product development process is not end-user-focused enough. Digital does not seem to involve the actual end users as much as other solution providers, like for instance Colt (http://goo.gl/oBCO0). What was missing during most presentations was a better demand-analysis of its customer base. Digitization has big implications for company cultures, modes of operation, and ways of life. Businesses require significant assistance in preparing for these challenges such as change management. Digital did not explain how it plans to address these either through internal capabilities or through partnerships with business consulting firms like Deloitte. This means that Telefonica risks developing solutions that do not meet demand. Moreover, detailed customer case studies were not discussed, although Digital did present its portfolio development approach.
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Yahoo's Potential Suitors Are A Motley Crew

Fatemeh Khatibloo

My Customer Intelligence colleagues and I, like many others, can't help but wonder how Carol Bartz's departure from Yahoo! is going to play out for the digital behemoth. Shar VanBoskirk's post last week summarizes Yahoo!'s current state, and I agree with her assessment that the company's assets are worth far more piecemeal than as a whole. As she points out, Yahoo!'s advertising capabilities are one of its greatest assets.

But from a CI perspective, so is its OpenID-based Yahoo! ID, which enables single sign-on (SSO) functionality for its more than 273mm global email-service users. Now, while a relative minority of those users actually take advantage of Yahoo! ID across the web today, the demand for SSO and federated identity is growing such that Yahoo!'s broad user base and consumer trust is already tremendously valuable. 

So, who are the "unusual suspects" that have the most interesting opportunity for acquiring Yahoo!'s personal services/communications/identity management business? 

  • Wal-Mart. Yep, you read it right. Wal-Mart, despite being the world's largest retailer, continues to lose digital market share to Amazon, and it clearly wants to change that. Last month, it restructured its online organization to better align with its brick-and-mortar presence and just this week announced plans to to buy "key assets" of mobile ad targeter OneRiot. Yahoo! ID would give Wal-Mart the single sign-on capability that it doesn't have today, with some nice benefits over Amazon's closed-ecosystem identity service. And Yahoo!'s user base is, demographically speaking, a slightly better fit for Wal-Mart than other major big-box retailers.
     
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What Signal Does The Google-Motorola Marriage Send To Product Strategists?

Carlton Doty

It’s a couple of days after Google announced its intentions to jump headfirst into the hardware business. By now everyone — including my colleagues Charles Golvin and John McCarthy — have expressed their thoughts about what this means for Apple, Microsoft, RIM, and all of the Android-based smartphone manufacturers. This is not another one of those blog posts.

What I really want to highlight is something more profound, and more relevant to all of you out there who might classify your day job as “product strategy.” To you, the Google/Moto deal is just one signal — however faint — coming through the static noise of today’s M&As, IPOs, and new product launches. But if you tune in and listen carefully, two things become crystal clear:

  • The lines between entire industries are blurring. Google — and some of the other firms I mentioned above — are just high profile examples of companies that are diversifying their product portfolio, and the very industries in which they play. There are several instances of this over the past "digital decade." What's different now is the increased frequency of the occurrences.
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