Insurance advisors are putting mobile technology to work in their practices more heavily than other financial advisors, according to the 2012 Digital Experience and Attitudes Survey, which was conducted by Toronto-based BlueRush Digital Media Corp. in partnership with Investment Executive (IE).
The survey of almost 700 IE readers explored the use of mobile devices among advisors and other financial services professionals. In comparing the responses from insurance advisors with those of mutual fund sales representatives and full-service brokers, some distinct differences emerged.
Full-service brokers are more likely than other advisors to own smartphones and tablets. Almost half of brokers surveyed own a tablet, at 47.4%, compared with 34.5% of mutual fund advisors and 30.5% of insurance advisors. In addition, 76% of brokers own a smartphone, compared with 72% of all advisors.
Across all channels of the financial services industry, the BlackBerry is the most popular smartphone; this is particularly true for full-service brokers. Among brokers using smartphones, 68.1% own a BlackBerry, 23.3% own an iPhone and 12.1% own an Android. Insurance advisors and mutual fund reps are more divided: just 43% and 56.5%, respectively, own a BlackBerry, while 36.7% and 30.6%, respectively, own an iPhone. Some advisors surveyed own more than one model of smartphone.
Insurance advisors appear to be getting more business-related use out of their mobile devices. For instance, 33.9% of insurance advisors using smartphones and tablets say they regularly use these devices during client meetings, vs 23.7% of all advisors.
Insurance advisors also are more likely than other advisors to use their mobile devices to prepare for client meetings, for social media, for making voice calls with Skype and for cloud computing.
These advisors are, thanks to their extensive use of this technology, more likely to report that they’re benefiting noticeably from using their devices. Among the insurance advisors surveyed, 48.4% say they’re “much more effective” as a result of using their digital devices, vs 46.7% of full-service brokers and 44.2% of mutual fund sales reps.
One reason insurance advisors use mobile technology more heavily is that they tend to spend more time on the road than other advisors, says Peter Wouters, director, tax and estate planning and retail insurance products and marketing with Kingston, Ont.-based Empire Life Insurance Co.: “Insurance-related work tends to be more of a face-to-face business, so the need and lure of mobile devices and technology is greater.”
Furthermore, the insurance business already is largely electronic in nature. At Mississauga, Ont.-based Primerica Life Insurance Co. of Canada, for example, 72% of insurance business is conducted electronically, says Jeff Dumanski, president and chief marketing officer. Primerica’s agents can conduct every step of a transaction online, including assessing client needs through a web-based program and submitting applications and delivering approval to clients electronically. In fact, through an “instant underwriting” feature, some clients can have their application approved online in less than a minute.
“It’s a great client experience,” Dumanski says, “to be able to issue that coverage right away at the kitchen table.”
As insurance advisors already have the capability of conducting so much of their business electronically, Dumanski says, adopting mobile technology was a natural progression for them.
In contrast, other aspects of the financial services business – including mutual funds – tend to be more paper-based, which limits the amount of business that can be done via mobile technology.
“On the mutual fund side, we find there’s a lot of different rules,” Dumanski adds. “There seems to be a lot more paperwork and signatures.”
The proactive efforts by insurance firms to develop practical software and applications for advisors also has contributed to the use of mobile technology. Empire Life, for instance, recently launched SimpleQuote, an iPad app that provides quotes on up to four term products at once.
“Insurance companies have done a pretty good job of making content available online,” says Gary Teelucksingh, senior vice president with BlueRush.
Such apps create a key incentive for advisors to embrace mobile devices; all types of advisors say the factor that influences their decision to purchase a smartphone or tablet the most is the availability of preferred or suitable apps.
Cost also is important, especially for insurance advisors, who are most likely to foot the bill for their device. Among insurance advisors using mobile devices, 85.5% have purchased their device, while 14.5% had it supplied by their employer. In contrast, 17.8% of mutual fund reps and 17.1% of full-service brokers had devices supplied by their employers.IE
© 2012 Investment Executive. All rights reserved.