1. © 2011 Forrester Research, Inc. Reproduction Prohibited 1

2. 2 © 2009 Forrester Research, Inc. Reproduction Prohibited Market Update: State of the Insurance Mobile Apps Ellen Carney, Senior Analyst Thursday, November 3, 2011, 1:30 – 2:00 pm A presentation at A.M. Best Company's 6th Annual Insurance Marketing & Advertising Summit

3. © 2011 Forrester Research, Inc. Reproduction Prohibited 3 How is mobile changing the business of insurance? How are consumers embracing mobile? How are insurers and technology firms responding? Whats the WIM? What we're going to be covering today...

4. © 2011 Forrester Research, Inc. Reproduction Prohibited 4 Your customers are re-imagining what insurance means to them...

5. © 2011 Forrester Research, Inc. Reproduction Prohibited 5 That demand for digital experiences is pressuring insurers to shift to doing the right things from just doing stuff right Source: Forrsights Budgets And Priorities Tracker Survey, Q2 2011 (6-22-2011) Base: 2,741 IT Decision makers; 74 North American Insurance IT Decision makers

6. © 2011 Forrester Research, Inc. Reproduction Prohibited 6 And insurance IT organizations are ramping up to support new thinking... Source: Forrsights Budgets And Priorities Tracker Survey, Q2 2011 (6-22-2011) Base: 2,741 IT Decision makers; 74 North American Insurance IT Decision makers

7. © 2011 Forrester Research, Inc. Reproduction Prohibited 7...with mobile playing a starring role Base: 185 NAM Insurance Network and Telecom Decisionmakers Source: Forrsights Networks And Telecommunications Survey, Q1 2011

8. © 2011 Forrester Research, Inc. Reproduction Prohibited 8 About 60% of online retailers surveyed have defined the role mobile will play in the business June 2011 The State Of Retailing Online 2011: Marketing, Social, And Mobile

9. © 2011 Forrester Research, Inc. Reproduction Prohibited 9...and they have definite revenue goals for their mobile strategy

10. © 2011 Forrester Research, Inc. Reproduction Prohibited 10...meanwhile, weve finally reached the inflection point in the US for mobile banking 50 million US adult mobile bankers by 2015!

11. © 2011 Forrester Research, Inc. Reproduction Prohibited 11 Consumers are going to your online sites to give you money, now and in the future Base: 315 US and Canadian consumers who have purchased insurance You indicated that you visited an insurance company online during the past 12 months. Of the following activities, which of them was the reason for your most recent visit?

12. © 2011 Forrester Research, Inc. Reproduction Prohibited 12 © 2011 Forrester Research, Inc. Reproduction Prohibited Source: North American Technographics® Financial Services Online Benchmark Recontact Survey, Q2 2010 (US) Base: US online adults who own at least one insurance product and have used each channel at least once in the past 12 months Channels used to interact with an insurer over the past 12 months Percentage of users who are satisfied or extremely satisfied with each channel...but in insurance, mobile adoption is low, even if customers are happy

13. © 2011 Forrester Research, Inc. Reproduction Prohibited 13 Mobile services – both Web and applications – have to offer three core benefits to drive usage Convenience Quotient ImmediacySimplicityContext

14. © 2011 Forrester Research, Inc. Reproduction Prohibited 14 Geico uses the mobile camera to return a quote by email Basic information is captured from the drivers license Next steps are communicated.

15. © 2011 Forrester Research, Inc. Reproduction Prohibited 15...while UK aggregator, comparethemarket.com, lets shoppers get a quote by taking a picture of the license plate iPhone app that enable a user to: Create a profile (done once, usable many times thereafter). Initiate a quote request for a new auto policy by taking a picture of a license plate and submit the quote request. App sends the users profile info plus any other info on the quote request. Quotes from multiple carriers generated and presented in one screen back to the user on the iPhone.

16. © 2011 Forrester Research, Inc. Reproduction Prohibited 16 Allstates Digital Locker gives insureds more reasons to engage, driving additional sales

17. © 2011 Forrester Research, Inc. Reproduction Prohibited 17 Tokio Marine offers location-aware, ad-hoc sports and travel insurance

18. © 2011 Forrester Research, Inc. Reproduction Prohibited 18 Tech vendors are stepping in front office solutions for mobile capture in a variety of formats Source: http://www.expedata.net/

19. © 2011 Forrester Research, Inc. Reproduction Prohibited 19...including applications that handles the prep and capture for producer management Source: http://www.millbrookinc.com/mobile_apps.asp

20. © 2011 Forrester Research, Inc. Reproduction Prohibited 20 © 2011 Forrester Research, Inc. Reproduction Prohibited The more tech-savvy your customers are, the more likely they are to change insurers How likely are you to switch some of your business away from the firms below? (% indicating likely or very likely) Base: 7,727 Online Adults Source: North American Technographics Customer Experience Online Survey, Q4 2010 (US)

21. © 2011 Forrester Research, Inc. Reproduction Prohibited 21 © 2011 Forrester Research, Inc. Reproduction Prohibited And your future customers hold other information sources in higher regard... Base: US Youth Respondents 12-17 N=4,588 Source: North American Technographics Youth Online Survey, Q3 2011 (US)

22. © 2011 Forrester Research, Inc. Reproduction Prohibited 22 © 2011 Forrester Research, Inc. Reproduction Prohibited...and dont trust mobile ads Base: US Youth Respondents 12-17 N=4,588 Source: North American Technographics Youth Online Survey, Q3 2011 (US)

23. © 2011 Forrester Research, Inc. Reproduction Prohibited 23 Whats the WIM ? The role that technology plays in insurance business has shifted from being just a way to reduce costs to being integrated into how business gets done... –...meaning that technology performanceespecially mobile--has implications around customer and agent experience Cool customer and distributor-facing innovations can be enabled by mobile –...meaning strategies to address mobile have to be a fundamental part of any emerging technology strategy Mobile functionality that helps agents help their clients is critical –...meaning it has to prove youre easy to do business with The online experience you deliver is now key to insurance customer and agent loyalty... –...and lack of a strategy that will build consumer trust will impact your revenue, cash flow, and profitability

24. © 2009 Forrester Research, Inc. Reproduction Prohibited Thank you Ellen Carney +1 617-613-6328 ecarney@forrester.com www.forrester.com