Insurance consumers accelerate shift to mobile channels

Each year, across personal and commercial landscapes, more U.S. consumers are gravitating toward mobile devices as their primary means of digital access. Insurers would be wise to recognize that mobile channels may grow to dominate customer experience engagement in the coming years.

Pew Research Center data from 2024 found that roughly 15% of U.S. consumers rely solely on mobile devices for connectivity, a figure that surges to 21% among 18- to 29-year-olds, signaling that one in five future customers not only expects mobile app access but depends on it entirely for daily interactions and business dealings.

The ascent of mobile is reshaping the insurance industry's growth path. In the past, many carriers undervalued mobile functionality compared to other digital avenues, a choice that has hindered progress. Current data underscores this misstep: insurers sluggish to adopt mobile channels are noticeably less adept at capturing consumer interest.

For instance, those lagging in mobile adoption risk losing customers to digital-first competitors, as new policy growth, a telling marker of switching behaviors, climbed 6% year-over-year in Q1 2024, with a clear advantage for carriers delivering polished app experiences.

Given how deeply consumers now depend on mobile access, often to the exclusion of other options, should insurers redouble their efforts on mobile app strategies? The answer is a firm yes, though carriers across the industry stand at markedly different stages of readiness. For those poised to catch up quickly, the good news is that development today is swifter, more effective, and far less burdensome than it once was.

Not long ago, crafting a scalable, fully integrated app experience posed a formidable challenge, no matter what the organization's size. Factors like integration complexities, communication bottlenecks, access limitations, web platform alignment, and security demands turned these projects into lengthy, intricate undertakings, frequently stalled by delays and ballooning costs.

By 2025, however, these obstacles have been smoothed out through seasoned expertise, practical know-how, and the collaboration of multidisciplinary talent. The result is more efficient approaches and resource strategies that enable carriers to systematically address risks and development challenges. Put simply, building enterprise-grade apps is now better, faster and more affordable, with development timelines shrinking to a few months depending on feature intricacy.

So, is it worth the effort? Does the average carrier need a robust mobile app to stay competitive? Yes, and the case stands on a rich array of evidence.

Mobile is non-negotiable for insurers
In an era where screens shape daily existence, mobile technology is not merely an option for financial services firms – it is a cornerstone. Data increasingly shows that mobile, as part of a broader customer experience strategy, is vital for staying competitive and ensuring survival.

Consumers aren't just casually browsing on their devices; they're transacting, making choices, and walking away from providers, all through their mobile devices. The evidence is compelling: Americans pick up their mobile devices an average of 352 times a day, roughly once every 2 minutes and 39 seconds, and across generations, reliance is profound, with 76% of Gen Xers, 75% of baby boomers, 71% of Gen Zers, and 68% of millennials deeming their mobile device indispensable.

This dependence intensifies among younger cohorts, where forward-thinking strategies, such as partnerships with brands like Rivian to embed insurance at the point of sale, boosted uptake by 12% among younger drivers in 2023, according to the National Association of Insurance Commissioners. Mobile isn't just a utility here — it is the key to unlocking the next generation of policyholders.

The insurance industry is steadily realizing that this is not about occasional mobile use. Customers turn to their devices to pay premiums, weigh product options and secure funds from various financial products. J.D. Power's 2024 survey drives this point home: 74% of insurance customers have their carrier's app installed, and 69% use it monthly, reporting higher satisfaction than those who don't.

Why? Mobile turns friction into ease for routine tasks like filing claims, checking balances or contacting support. Through mobile channels, these processes unfold in seconds, day or night, via interfaces that are typically simpler and less frustrating than other options. Insurers who master mobile delivery don't just meet expectations — they reshape them, transforming a historically cumbersome experience into one that slips effortlessly into your pocket.

Yet, as carriers bolster their mobile strategies, it is worth noting that satisfaction from mobile engagement is merely a foundation, not a lock on loyalty. A top-tier app experience grabs attention, but keeping customers depends on a wider web of value, including tailored rates, proactive risk notifications and fluid payment schedules. The Insurance Information Institute's 2023 findings reveal that digitally savvy insurers saw switching rates drop 8% below their peers, not because apps mesmerize users, but because they cement a bond that's tough to break.

Operational benefits add weight to this: a 2024 industry report found that an insurer slashed claims processing time by 30% with app-based photo uploads, turning weeks of paperwork into days of resolution. That's not just efficiency — it is cost savings, trust gained and a wider competitive edge. Agents reap rewards too, using mobile tools to pitch annuities or book policies on the spot, powered by real-time data that convert prospects into closed deals with unprecedented speed.

How to get there: The playbook
Mobile success doesn't demand a complete overhaul — it calls for a swift, precise rollout that capitalizes on what mobile offers. Begin by identifying what drives impact: engagement via instant AI-powered chatbots, efficiency through claims tracking, or growth with tools for annuities and loans. Don't rely on guesswork — align these with customer needs, such as flexible payment scheduling or instant access to distribution details.

This clarity can emerge in days or weeks, setting the stage for execution. Build smart and lean: agile teams, equipped with tested frameworks, can deliver a secure, integrated minimum viable product in three to six months, featuring essentials like claims uploads, payment portals, and real-time support, then refine it with user feedback during thorough testing.

The true advantage lies in sustained momentum, using analytics to customize offerings, track trends and outpace rivals. This is not a one-time effort, rather a dynamic platform that redefines how insurance operates and succeeds.

Act now, thrive tomorrow
Mobile technology is not a peripheral concern — it is the arena where customers, efficiency and leadership intersect. Insurers who invest today aren't just closing gaps, they're seizing a future where every screen becomes a chance to impress and engage.

The evidence is clear: consumers are tethered to their phones, development is streamlined, and the rewards — stronger loyalty, lower costs and new growth — are swift. Carriers who act promptly will carve out a strong position for the industry's future, delivering experiences that feel instinctive and meet policyholders where they live.

Clinging to outdated contact methods, expecting customers will settle, is a fading proposition. Forward-thinking carriers can harness mobile engagement to reset customer experience standards and chart a bold course for the industry.