Requiring Insurance Customers to Submit Claims Through a Mobile App is Risky–Here’s Why

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In Zipwhip’s 2019 State of Texting report, we found that 61% of consumers will not install a new app to communicate with a business. For insurance companies, this is an alarming statistic because it means customers won’t download an app until it is necessary, such as after a car wreck in an attempt to file a claim. Requiring an insurance customer to download an app to support the claims process can frustrate a person in an already upsetting situation. It’s a risky move, as churn rate is exceptionally high for customers that file a claim. In fact, one study by Accenture found that 41% of people who file insurance claims ultimately switch providers.

Here are our four good reasons why you should avoid requiring insurance customers to use an app for filing a claim, plus, a solution that provides a better customer experience.

1. Consumers don’t have enough storage on their devices

Visualize an insurance customer at the scene of a wreck trying to download an app, only to get an alert stating they don’t have enough storage.

These days, storage is precious and customers aren’t likely to download a third-party app prior to when it’s absolutely needed. Although storage has come a long way in the past years, the typical consumer still struggles with data management. We treat our cell phones like cameras and computers, expecting them to hold years of memories. From hundreds of photos to long texting threads, our entire lives are recorded in our phones.

2. Customers are concerned with battery drainage

We’ve all been there. Our battery power seems to be low on a consistent basis. We decide to investigate the problem and take action, which typically begins with finding the mobile apps that are responsible.

What will an insurance customer do when they learn that their insurance carrier’s mobile app is draining their battery? At minimum, they will uninstall the app. Of greater risk is a reduction in customer experience scores.

3. People don’t want to learn a new app

Nearly 21 percent of consumers abandon newly downloaded apps after one use. The average consumer has about 80 apps installed on their device but uses less than half of those each month. For most, those apps being used are social media or texting. Navigating our most-used apps becomes second nature and customers don’t want to be troubled with learning new ones.

4. People forget about them

The average person has roughly 80 apps installed on their mobile device. If push notifications were enabled for many of them, consumers would be drowned in notifications. To avoid this issue, many consumers turn notifications off on the apps they use the least. This means, the only way a consumer will click on an app is if they remember to. Given this, many apps are forgotten about altogether and eventually deleted.

A better solution

Customers want to communicate directly with claims adjusters and their preferred method of communication is texting. With a texting-for-business solution, you can provide a positive customer experience and reduce the risk associated with requiring a mobile app. Eliminating phone tag and receiving MMS pictures of damage are just a couple ways that adjusters will benefit.

Zipwhip’s texting for business is the fast, easy, and secure way to reach your customers. Contact us to schedule a 15-minute demo.

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