When a customer clicks on their insurance provider’s mobile app, it’s rarely because they’re having a good day. It’s because they’ve been in a car accident, discovered a leak in their roof, or just had their stuff stolen. In these moments, insurance mobile apps must deliver a flawless user experience so customers can feel confident that they’re on their way to getting back on their feet.
The insurance industry is investing heavily in its digital experience, and for good reason. According to a study by J.D. Power:
Overall customer satisfaction with the auto and home insurance digital claims experience rose 17 points in 2024 thanks to improvements in the user experience and types of services offered on mobile apps
Customer satisfaction scores are higher when a customer uses an insurer’s mobile app to report a claim, submit evidence, and track updates
84% of customers say their insurer provides an easy digital communication process
Whether filing a claim, updating policy information, or sharing data to help improve risk assessments and reduce premiums, policyholders want fast, personalized and secure, self-service mobile experiences. Here are nine ways mobile apps are transforming the insurance industry and the future of policyholder engagement.
1. Improving convenience and accessibility
The days of waiting on hold for the next available representative are over. Whether it’s paying a bill, updating contact information, or uploading photos after an accident, customers now expect insurers to provide 24/7 access to the information and tools they need.
A user-friendly mobile app lets policyholders manage their policies, file claims, and access support from anywhere and at any time. This is especially critical in high-stress situations like documenting damage after a car accident or checking coverage during a hailstorm.
In addition to making their services more accessible, shifting these interactions to mobile can help insurance providers reduce their service costs and error rates while freeing agents to focus on more complex customer requests.
2. Delivering personalized service
Insurance isn’t one-size-fits-all. Today’s customers expect their experience to be customized so they can get the exact plan and coverage they need without overpaying for unnecessary coverage.
Mobile apps help make personalization possible by capturing rich data about user preferences, behavior, and context. Apps can capture data like mileage and driving behavior to reward safe driving, tailor policies, make product recommendations, and deliver timely communications when they will be most welcome.
3. Empowering self-service
No one wants to spend minutes waiting to do something that should take seconds. Mobile apps allow customers to accomplish tasks like updating beneficiary information, assessing an insurance card, or checking on claim status without waiting for a customer service representative.
Self-service also provides policyholders with a greater sense of control. Rather than calling an agent and hoping the request is accurately fulfilled, a customer can immediately see that the action they took was completed, along with the next steps. This helps increase confidence and reduce anxiety during high-stress moments like submitting claim information or updating coverage.
4. Providing instant answers and support
Beyond self-service, mobile apps can also provide access to AI-powered chatbots that use the customer’s policy details to provide specific, contextual answers that are far more informative than general FAQ responses.
These chatbots let insurers provide an agent-like experience without having to wait for an agent. If the query is too complex for the AI, it seamlessly escalates the issue to a live agent while passing along the relevant information during handoff so the customer doesn't have to repeat information or start from scratch.
5. Fostering two-way communication
Customers like using their insurer’s mobile app because it provides a direct link to their provider. Whether it’s responding to a message, uploading a requested document, or asking a follow-up question, policyholders can stay in touch without needing to speak with a new customer service rep or wait for a call back.
Insurers can also use the mobile app as a direct line to customers so they can share important information quickly and effectively. By using push notifications, in-app alerts, and secure messaging, providers can remind customers about upcoming payments, notify them of severe weather events, prompt them to renew their plan, or follow up on a recent claim. Each message can be targeted, personalized, and timed-based on individual policies or behaviors so that each communication is relevant and actionable.
6. Creating tailored promotional offers
Insurers can use customer data like location, policy type, driving behavior, or life stage to create personalized, relevant promotions, discounts, or add-on coverage options that they can deliver at the right time directly to the customer’s phone.
From safe driver discounts to promoting new coverage options during peak weather seasons, these personalized offers are more likely to lead to conversions while making customers feel that their insurer understands their needs.
7. Capturing and retaining customers
When customers are comparing insurance providers, app store ratings are now just as important as pricing or coverage. From onboarding and managing the account to filing and tracking a claim, the mobile app experience is now synonymous with the insurance experience.
This means that a poor-quality mobile app can prompt users to explore other options, while a high-quality mobile experience communicates that the provider is responsive and committed to making things easier for its customers.
8. Driving innovation and differentiation
Mobile apps give insurers a flexible platform they can use to roll out new products, services, and features that set them apart from the competition while allowing them to innovate faster and test new ideas directly with their customer base.
Rather than delivering a static product, a mobile app helps insurers provide a dynamic experience that consistently delivers more value through new tools, on-demand coverage, or partner services. It also helps insurers respond quickly to market shifts or customer feedback so they can refine their offering in real time.
9. Accelerating speed to market
With insurers implementing an average of 6.75 mobile app updates per year, mobile apps give providers the ability to quickly and regularly launch new features, test product variations, and respond to changing customer needs.
This agility helps providers be first to market with new innovations, keep up with the competition, adapt to new regulations, and refine their app experience based on user feedback with minimal disruption.
The future of insurance is mobile
From helping customers navigate high-stress moments with confidence to delivering ongoing value through personalization, communication, and innovation, mobile apps are transforming every stage of the customer journey.
Is your app up to par? Check out our Insurance App Testing for Mobile Checklist to learn insurance mobile app best practices and uncover opportunities to deliver even more value to your customers.
