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Innovations in the Insurance Market - US - April 2016

Innovations in the Insurance Market - US - April 2016

After years of offering little innovation, the insurance industry is rapidly integrating technology into its interactions with consumers. Mobile apps that make it easier to get information and conduct transactions, trackers that provide feedback so people can change their behavior, and devices that keep homes safer and more environmentally friendly are customer-centric innovations that are changing consumer expectations of both the industry in general and their individual carriers. Because almost everyone needs some kind of insurance at some point in the lives, companies have to continue investing in innovations to meet customers’ expectations or risk losing their business to companies that do.

This report examines the following areas:

Innovation can be more important than cost
Consumers are still not downloading insurance mobile apps
Experience is still key


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Figure 1: Interest in insurance innovation, by demographics, January 2016
Figure 2: Consumers who have downloaded insurance mobile apps, by type of insurance owned, January 2016
Figure 3: Attitude toward innovation, by generation, January 2016
The opportunities
Figure 4: Interest in purchasing insurance from a non-insurance company, by gender and age, January 2016
Figure 5: Interest in text alerts and mobile apps, January 2016
Figure 6: Interest in trackers with incentives, January 2015
What it means
THE MARKET
What you need to know
Life/Health is growing faster than P&C
Market size and forecast
Historic sales performance
Figure 7: Net written premiums for property and casualty, life, and health insurance, at current prices, 2010-20
Market factors
Big data is changing how insurance works
KEY PLAYERS
What you need to know
Prudential is offering life insurance to HIV patients
John Hancock Vitality Program
Mobile apps go beyond transactions
Mobile apps are still struggling for usage
Insurance companies interest in drones is growing
Mobile-first will grow
What’s working?
Prudential is offering life insurance to HIV patients
John Hancock Vitality Program
Figure 8: John Hancock Vitality Online ad, 2015
Mobile apps go beyond transactions
What’s struggling?
Mobile apps are still struggling for usage
Figure 9: Consumers who have downloaded insurance mobile apps, by type of insurance owned, January 2016
What’s next?
The use of drones by insurance companies will increase
The mobile-first strategy will grow
THE CONSUMER
What you need to know
Most consumers have auto and health insurance
Mobile apps are underutilized
More interest in home security and health tracking devices than in safe driving devices
Innovative solutions appeal to Hispanics
Mobile apps or text alerts?
Most popular mobile apps are transactional
Millennials are most likely to trust insurance companies
Agents are preferred to websites for information
Insurance ownership
Most consumers have auto and health insurance
Figure 10: Insurance ownership, January 2016
Single segment is underinsured
Figure 11: Insurance ownership, by marital status, January 2016
The appeal of mobile apps
Mobile apps are crucial to some
Figure 12: Importance of mobile offerings, by demographics, January 2016
Yet they have yet to catch on
Figure 13: Have downloaded mobile apps, by type of insurance owned, January 2016
Interest in technological devices
More interest in home security and health tracking devices
Figure 14: Technological devices for driving, home, and health tracking, January 2016
Interest in all devices is highest among iGen
Figure 15: Interest in safe driving devices, by generation, January 2016
Figure 16: Interest in home security devices, by generation, January 2016
Figure 17: Interest in health tracking devices, by generation, January 2016
Hispanics more interested in devices that track driving
Figure 18: Interest in devices that track driving, by Hispanic origin, January 2016
Parents are interested in tracking driving habits as well
Figure 19: Interest in devices that track driving, by parental status, January 2016
Figure 20: Progressive Snapshot print ad, 2015
Interest in innovations
Men are more interested in innovations
Figure 21: Interest in innovations, by gender, January 2016
Innovative solutions appeal to Hispanics
Figure 22: Interest in innovations, by Hispanic origin, January 2016
Fitness and diet trackers appeal mostly to female Millennials
Figure 23: Interest in fitness/diet trackers, by gender and age, January 2016
Interest in technology offerings
Mobile apps or text alerts?
Figure 24: Interest in mobile apps and text alerts, January 2016
TURF Analysis
Figure 25: Interest in technology offerings, TURF Analysis, January 2016
Figure 26: Table - TURF Analysis – Interest in technology offerings, January 2016
Methodology
Most popular mobile apps are transactional
Figure 27: Desired mobile apps, January 2016
Young people want to use mobile apps to get information
Figure 28: Interest in mobile apps, by generation, January 2016
Attitudes toward insurance
Women still don’t trust insurance companies
Figure 29: Attitudes toward insurance companies, by gender, January 2016
Millennials are most likely to trust insurance companies
Figure 30: Attitudes toward insurance companies, by generation, January 2016
Insurers are doing well with parents
Figure 31: Attitudes toward insurance companies, by parental status, January 2016
Hispanics trust insurance companies
Figure 32: Attitudes toward insurance companies, by Hispanic origin, January 2016
Agents are preferred to websites for information
Figure 33: Preferred source of information, by generation, January 2016
High earners prefer agents
Figure 34: Preferred source of information, by household income, January 2016
APPENDIX
Data sources and abbreviations
Data sources
Abbreviations and terms
Market
Market forecast
Figure 35: Fan chart forecast for total insurance sales, 2010-20
Figure 36: Fan chart forecast for total property and casualty insurance sales, 2010-20
Figure 37: Fan chart forecast for total life insurance sales, 2010-20
RESEARCH METHODOLOGY
US Research Methodology
Consumer research
Social Media Research
Trade research
Statistical Forecasting

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