Earlier this year, the P&C Insurance team published our annual Mobile App Pace of Change report (subscription required), in which we analyzed the type, number and significance of mobile app updates performed by insurers in 2023. This year, carriers shifted focus away from self-service tasks—the number one area of change in 2022—to prioritize the improvement of claims capabilities and resources in mobile apps. Additionally, several insurers broke the mold of traditional insurance apps, shifting away from a focus on policy information to instead highlight exclusive value-adding tools and services offered to their policyholders. We observed a small percentage of high-significance changes this year (15%), which we speculate is due to the most pressing app changes having been made in prior years. As P&C Insurance mobile apps reach a level of parity when it comes to core capabilities—such as bill pay, ID card access, policy detail review or claim filing—insurers must continue to innovate in order to stand out from their competitors.

Our report examines how frequently 16 insurers in our coverage set update their mobile apps. We tracked all changes featured in last year’s biweekly updates—spanning from January 3 to December 18—to identify industry trends, highlight areas of focus and extrapolate the digital improvement strategies of carriers in our coverage set.  We assigned each change a significance ranking (either low, medium or high) based on the impact of the update.

  • Examples of low significance updates include minor navigation changes and tweaks to existing content.
  • Updates defined as medium significance include the addition of new tools or resources, more extensive navigation updates and moderate interface enhancements.
  • Finally, the high significance rank includes major app revamps, new app sections, new billing capabilities or the launch of an entirely new mobile app.

After ranking each update, we placed them into one of the following categories:

  • Account Information
  • Account Self-Service
  • Billing & Payments
  • Claims
  • Design & Navigation
  • Device & Settings
  • Login & Security
  • Products & Services
  • Tools & Resources

Overall, we observed 108 app updates carriers published in 2023, a slight increase from the 102 app changes reported in last year’s iteration of the Mobile App Pace of Change report. The Claims category saw the highest number of updates this year (21), followed by Account Self-Service (17) and Products & Services (16) in second and third place, respectively. Claims also featured the highest number of high-significance updates of any category (5) as insurers worked to iron out kinks in the claims filing process and provide more extensive claims education. Last year, insurers focused primarily on improving self-service capabilities on their mobile apps, publishing 32 updates in the category overall, followed by 18 Billing & Payments related updates and 15 changes in the Tools & Resources category. The Billing & Payments category received the most impactful changes last year, with 74% of updates in the category qualifying as medium or high significance. The average number of updates per insurer continued to steadily climb this year, totaling 6.75 updates per insurer compared to 5.72 last year. For the third year in a row, State Farm far outpaces other insurers, implementing a staggering 29 updates compared to the average 7.

blank
Number of Changes Per Category, 2023 vs. 2022

Two insurers stood out this year for performing extensive mobile app revamps that may provide a glimpse into the future of insurance apps as both apps efficiently highlight unique value-add features as well as provide prominent pathways to key policy information.

Hippo Makes Big Changes to Mobile App

Hippo overhauled its app completely in 2023, making 10 changes overall with a whopping seven qualifying as medium or high significance. Following the round of updates, the app now acts as a hub for home health and maintenance, providing a unique opportunity for user engagement and education. The insurer relegates policy information to one section of the site, and primarily focuses on promoting value-add features and services to its policyholders.

  • In August, the carrier reworked the Home Health tab on the app to provide a more personalized view of the user’s home health score and related recommendations
  • A new Offers tab appeared in the app’s main navigation menu in September, housing exclusive deals on home devices, energy optimization and more
  • Finally, in December, Hippo added a Home Assist tab to the main menu, that promotes the new service and houses service information for enrolled policyholders

 

blank
Hippo Mobile App Home, Offers and Home Assist Screens

Allstate Intros Major Revamp in November

Allstate’s mobile app underwent a major revamp in November of last year, resulting in an app that similarly intertwines account information and value-add features. The updated mobile app home screen features a prominent New Features section that promotes and links to four new tools. In the same update, the carrier also reworked the app’s main navigation menu and overhauled its Message Center. In the New Features section on the home screen, a row of tiles promote the new tools using colorful thumbnail images. Users can tap any tile to access the following features:

  • Users can enable location services on their phone to use the GasBuddy tool, which allows them to view the cheapest gas prices in their area
  • A What Are Your Climate Risks? tile loads the First Street Foundation climate risk assessment tool; users can enter their address to gauge their exposure to climate risks including fire, flood heat and wind risks
  • The SpotHero tile offers an exclusive discount on the first parking spot booked through the tool
  • Finally, users can tap the Good Hands Repair Shops tile to load the Allstate Repair Network shop locator tool

 

blank
Allstate Mobile App Home, GasBuddy Tool and Climate Risk Assessment Tool Screens

Insurer focus on claims capabilities this year makes sense considering the turbulent conditions the industry weathered in 2023. Hit hard by unprecedented losses caused by frequent disastrous weather events—totaling over $60 billion from convective storm damage alone—several insurers have been forced to issue nonrenewal notices or withdraw coverage entirely from high-risk states. Many insurers that managed to stay afloat had to implement high rate increases—with some increasing rates by over 50 percent—leading to a surge of dissatisfied customers and increased claims litigation. Additionally, rising rates of insurance fraud indicate that insurers should further polish their claims experiences to minimize claims leakage. With these factors in mind, it is imperative that insurers provide policyholders with an intuitive, attractive and hassle-free digital claims experience.

The importance of providing an excellent, streamlined mobile app only increases year by year, as consumers continue to shift their digital usage from desktop to mobile devices. This shift can largely be attributed to younger policyholders who continue to drive demand for responsive, engaging mobile experiences that stand out from the crowd. Findings from our latest customer survey reinforce these desires, as only 6% of Gen Z respondents said they did not have suggested improvements for their insurer’s platform, compared to the 78% of the Silent Generation who reported no qualms. To attract and retain discerning policyholders who increasingly prefer mobile digital experiences, insurers should implement engaging value-add features, explore new ways of leveraging the unique capabilities of the mobile platform and continue improving core app capabilities in the year ahead.

For more on the latest trends across financial services and healthcare, check out our Insights section. And learn more about accessing the pace-of-change report as part of our subscription P&C Monitor research service.

blank
Nikki Gary

Nikki Gary is an Analyst on CI's insurance team.