Small business is booming in the US. The US Small Business Administration declared this week as “National Small Business Week” to promote the role that small business plays in the US economy. Why should insurance companies pay close attention to the needs of small business? For starters, small businesses mean:
Big economic impact. Small business spells substantial opportunity. These small businesses comprise about 49% of private sector employment, and about 43% of private sector payrolls.[i] And as small business grow, that growth translates into the need for more insurance to cover employees, vehicles, and other liabilities.
New revenue streams. With self-driving vehicles tests planned in 30 cities by 2017, there’s trouble ahead for the industry’s cash cow, private passenger auto insurance.[ii] Small business insurance is one revenue stream that insurers can increase to counterbalance premium declines.
Have you ever had the pleasure of making the acquaintance of Maxwell the Pig? Maxwell is a likeable if slightly assuming animated pig. At times he can be a bit dismissive of those who aren’t as digitally savvy as he is.
Even if you don’t know Maxwell, perhaps you know other such celebrities? I thought not. That’s because there aren’t many companies that are willing to advertise their mobile insurance services as proudly as Geico is doing. For my new report, I surveyed the mobile offerings of more than 30 insurance companies in developed economies. The results clearly show that plenty remains to be done, both in terms of customer adoption and what’s on offer.
The big US insurers such as Geico and Progressive are leading the pack, offering a growing range of mobile functionality that lets customers get quotes, file and track claims, locate a repair shop, pay bills, and save documents simply by taking pictures with their smartphones. Offering functionality that makes it easy for customers to achieve their insurance-related aims seems like the basics, but a lot of companies still haven’t got it right.
Insurance carriers are pulling out the stops when it comes to their mobile strategies. It’s now rarer to find an insurer that doesn’t offer at least one app plus a mobile site. But just how effective are all these mobile insurance apps and sites at meeting the needs of auto insurance customers? At the end of the summer, we decided to check out the mobile sales and service functionality that leading US auto insurers – Allstate, Farmers, Geico, Liberty Mutual, Progressive, and State Farm – were offering to their customers. We reported what we learned in our just-published 2013 US Mobile Auto Insurance Functionality Rankings report.
Our approach followed these steps:
Define a user scenario. We defined a target persona: Ryan and his wife Nicole live in Chicago and are in the market for a new car and will need to change the vehicle on their policy. Their mobile goals are to research and apply for insurance, pay their bill, see how easy it is to file and manage claims, get help on the road, and see what other help they can get through their insurer on a mobile phone.
Score mobile functionality based on user criteria. Forrester’s mobile functionality benchmark methodology examines 26 individual criteria that measure how well an auto insurance app helps customers achieve their goals. Each criterion has a potential score ranging from -2 to +2.