Impact of Smartphones on the Insurance Industry: A Detailed Analysis

This report examines the impact of smartphones on the insurance industry, focusing on how mobile technology has revolutionized customer service, workflow, and overall operations. The analysis includes a discussion of the ways in which smartphones have improved customer interactions, streamlined business processes, and enhanced convenience for both insurance companies and policyholders. The report also delves into the ethical and regulatory implications of smartphone integration, drawing on the Lessig theory of social norms to analyze the impact of law, norms, architecture, and market forces. Furthermore, it explores the disruptive effects of smartphones on traditional insurance practices, highlighting how mobile technology has eliminated the need for physical meetings and enabled more efficient communication. The report concludes with a business process model illustrating how smartphones are integrated into the insurance company's workflow, supported by references to relevant research and industry publications. The report emphasizes the importance of smartphones in modernizing the insurance sector and adapting to the digital revolution.

Running head: UNDERSTANDING TO DIGITAL REVOLUTION
Potential Impact of Smartphones on the Insurance Industry
Name of Student-
Name of University-
Author’s Note-

1UNDERSTANDING TO DIGITAL REVOLUTION Part4: Disruption
Part 1: Research
Smart Phone
The mobile telephone and the mobile industry is considered as one of the latest
technologies that is evolved in the industries recently. The mobile technology is changing the
business environment that allows all the market participants reach their clients easily and
communicate with their customers with no cost or minimal cost (Händel et al., 2015). A
smartphone is basically a cellular telephone, that has an integrated computer as well as other
features including telephones, operating systems, running software applications, and web
browsing. Smart phones are used in every sector of human lives. Humans use smart phones in
every sector of life from an education sector to construction sector. The usage of smartphones
have changed the human lives to a great extent.
Insurance Industry
The word insurance means protecting the financial loss. The Insurance industry is
managing the risk or uncertain loss. The person or the entity who provides insurance is insurer,
insurance carrier, insurance company, or underwriter. The person or the entity who takes the
insurance is called as policyholder or insured (Eling & Lehmann, 2017). There are different
effects that the insurance does on society. The society bears the cost of damage or the loss of
damage. There are some disadvantages as well of using insurance. The insurance can increase
the fraud rate.

2UNDERSTANDING TO DIGITAL REVOLUTION Part4: Disruption
Part 2: Brainstorming
Three possible ways about how Smartphone change the Insurance Industry-
The smartphone can change the Insurance industry in the following ways.
Customer service is improved-
The insurance company can get the data of the customer and contact then as quick as
possible (Handel et al., 2014). This helps the company to increase its contact with the customers
and increase its service. The smartphones helps to mitigate customer satisfaction within the
industry.
Workflow and Operations are improved-
With the implementation of smartphone, the employees of the insurance company get
search their customers and personally give a better service to the customers. Smart phone are
best for contacting the data and makes the operation of the insurance company more efficient.
More Convenient-
As the services are offered by smartphones makes the service better, the working process
of the company becomes more efficient (Guzzetti & Pasquinelli, 2015). As most of the
customers uses smartphones, offers can be sent to the customer regarding insurance and the
customers can be explained about the features that the insurance company provides.
There are many industries as well where smartphone plays a significant role. Other
industries that include the use of smartphone is manufacturing industries, transportation
industries, information technology industries and many more.

3UNDERSTANDING TO DIGITAL REVOLUTION Part4: Disruption
There are other technologies as well that can be used parallel with the Smartphones.
Cloud computing is the other technology that can be used with smartphone to make the
insurance service better.
Part3: Regulations and Ethics
Impact of smartphones on the people in Insurance Industry is one of the most important
part of smartphones. According to Lawrence Lessig, there are main four regulators that plays an
important role in the society. The regulators that impacts the society and whose implications are
considered are the Law, Norms, Architecture as well as Market. The regulator of law indicates
the type of behavior and the practices that are sanctioned, social norms indicates all things that
are accepted by community, the market norm specifies the monetary cost that is associated with
the activities, and architecture norms specifies building an environment of social life.
According to Lessig theory of social norms, the smartphones that are used by the
insurance company uses big data analytics. The customer engagement will be improved
with the involvement of mobile phone in insurance industry (Lu, Yueh & Lin, 2016). The
smart phone helps the insurance agents to provide offers to the users.
The insurance companies focus to modernize their systems from early days and with the
improvisation of smartphones, the insurance industry has reached its peak. The customer
issues can be solved with the smartphone implementation.
The experience of the customer are seamless with smartphones as all their issues can be
solved anytime and anywhere they like to, according to law norm of Lessig. The
customer may face problem regarding insurance ant anytime. So, to solve their issues
smartphone is the best way for the agents.

4UNDERSTANDING TO DIGITAL REVOLUTION Part4: Disruption
The agents of the insurance industry can find the contact of the customer online and
contact them whenever they want. This is according to the architecture norm of Lawrence
Lessig. As the smart phones have become such a medium that most of the people use
globally. So, to contact person over smart phones is not at all difficult and they can also
send text to the customer regarding offers.
Part4: Disruption
The mobile technology or the smartphones have made the travelling issue of the insurer.
With the implementation of the smartphone in the insurance sector, the insurer do not have to
travel to the customer for making them understand about the insurance policy or offers that are
available for the policy holder (Paik & Zhu, 2016). A communication network is built in between
the insurance agent and the customer who can avail insurance from the company.

5UNDERSTANDING TO DIGITAL REVOLUTION Part4: Disruption
Figure 1: Business Process Model and Notation of an Insurance Company with use of
Smartphones
(Source: Created by Author)

6UNDERSTANDING TO DIGITAL REVOLUTION Part4: Disruption
References
Paik, Y., & Zhu, F. (2016). The impact of patent wars on firm strategy: evidence from the global
smartphone industry. Organization Science, 27(6), 1397-1416.
Lu, M. H., Yueh, H. P., & Lin, W. (2016, July). Mobile technology use among sales people in
insurance industry. In International Conference on Cross-Cultural Design (pp. 761-768).
Springer, Cham.
Guzzetti, F., & Pasquinelli, A. (2015). Flood risk management: the role of geo-information in the
insurance industry. GEOmedia, 19(3).
Händel, P., Skog, I., Ohlsson, M., & Ohlsson, J. (2015, May). Smartphone instrumentation for
insurance telematics. In Instrumentation and Measurement Technology Conference (I2MTC),
2015 IEEE International (pp. 1613-1616). IEEE.
Eling, M., & Lehmann, M. (2017). The Impact of Digitalization on the Insurance Value Chain
and the Insurability of Risks. The Geneva Papers on Risk and Insurance-Issues and Practice, 1-
38.
Handel, P., Skog, I., Wahlstrom, J., Bonawiede, F., Welch, R., Ohlsson, J., & Ohlsson, M.
(2014). Insurance telematics: Opportunities and challenges with the smartphone solution. IEEE
Intelligent Transportation Systems Magazine, 6(4), 57-70.