Mobile Imaging in Insurance: Delivering Differentiation and Profit

Mobile Imaging in Insurance
© 2012 SMA All Rights Reserved www.strategymeetsaction.com
SMA Perspective
Page 1
An SMA Perspective
Author: Deb Smallwood, Founder
Mark Breading, Partner
Published Date: April, 2012
This perspective is based on SMA’s ongoing
research on mobile and ECM technologies in insurance.
Mitek Systems®
has purchased distribution rights.
Delivering Differentiation and Profit
Featuring as an example:
Mitek Systems®

SMA Perspective
Page 2
Table of Contents
Mobile Age Promises New Possibilities 3
A Truly Mobile Age
Customer Expectations for a New Insurance Experience
Business Capabilities 5
Differentiation for Growth and Profit
New Ways to Reduce Cost
New Power for Business Processes
Technology Capabilities 7
Meeting the Requirements for Flexibility and Agility
Differentiation Enabled by Technology
Mitek Systems®
9
Company Overview
Breadth of Functionality
Strategy Meets Action Commentary 11
About Strategy Meets Action 11
About This
Perspective
This perspective is based
on SMA’s experience,
research, and insights.
 The mobile world is
expanding at an
astounding pace in all
age groups and all
market sectors.
 Insurers have a
tremendous
opportunity to
differentiate
themselves with
advanced mobile
technologies like
mobile imaging.
 Mobile imaging can
help insurers achieve
profitable growth by
reducing cost,
improving data
accuracy, and better
serving their
customers.
Mitek Systems®
has
purchased the
distribution rights to this
research and
perspective. This is not
paid-for research.

SMA Perspective
Page 3
Mobile Age Promises New Possibilities
In today’s mobile age, virtually every industry is leveraging mobile technologies to
expand self-service channels and to improve those already in place. The insurance
industry is no exception. Today, customers can access their policies, file claims, and get
quotes – all with the convenience of using a smartphone or tablet. However, insurers are
only just beginning to capitalize on the full value that mobile solutions can deliver. There
are new options for solutions that go beyond just simple transactions. It is now possible
to improve top and bottom line growth, and transform both the customer experience and
business processes across the entire value chain, by simply changing the way information
is captured and utilized.
Advanced mobile technologies offer insurers the power and potential to truly differentiate
themselves in the marketplace. Mobile imaging solutions provide a perfect example. They
present an opportunity to revolutionize the way insurers do business, and to bring
simplicity and synergy to currently segmented areas in insurance companies. Maximizing
competitive distinction in the area of mobile technologies will move insurers into prime
positions in the market. SMA’s research and insights identify major benefits. Insurers are
able to:
 Drive growth through differentiation by using advanced technologies to deliver
convenient and immediate self-service interactions – creating the “wow” factor for
the customer.
 Increase profitability by reducing operational costs and, at the same time,
gathering more accurate and complete data – unleashing the power to truly
transform business processes across the value chain.
 Improve sales and retention by delivering services that are faster and easier to
use, and seamlessly integrating them with streamlined business processes –
revolutionizing the way customers and insurers are able to conduct business.
It is time for all insurers to embrace mobile imaging solutions. The capabilities and
possibilities are rapidly expanding. Insurers that capitalize on this technology now will not
only be ahead of the pack, but they will be making a wise investment and opening the
door to infinite possibilities for the future.
A Truly Mobile Age
The mobile age has become a reality for all ages, all regions, and all industries. Initially,
the mobile phenomena had the greatest impact on and acceptance among the Gen-Y age
group, but the shift to mobility is much broader today and spans all ages. Data reported
in the media shows that over 60% of people aged 18-29 own smartphones. Statistics
show that the fastest growth for smartphones and tablets is in the 30-50 age group,
where some 35% already own a smartphone. Sales of smartphones are expected to
exceed those of PCs in 2012. Today, even grandmas are relying on smart mobile devices
to stay in touch and manage the details of everyday life.
Even more fascinating is the explosion in the sales numbers for tablet devices, with
projections that they will eventually surpass those of smartphones. Add to that the use of
smartphone and tablet mobile applications. The number and sophistication of these apps
continue to surpass all expectations. There are currently over 500,000 mobile
applications available in Apple’s App Store, and developers are waiting in line to place
The mobile-enabled
population is growing
quickly. Now is the time
for insurers to embrace
the “wow” solutions that
will attract customers
and keep them coming
back for more.
Differentiation is a brand
builder. The delivery of
useful, engaging
solutions and tools for
customers holds the
power to move an
insurer beyond the
status quo – helping
them to retain existing
customers and attract
new ones. Advanced
mobile technologies are
making differentiation
possible.

SMA Perspective
Page 4
their new ones. The statistics are already too vast and too meaningful to ignore. All
insurers should be considering the breadth and importance of this mobile age that
includes anyone with access to mobile technology.
SMA’s research on mobile technology use reveals that 22% of insurers indicate that they
have a mobile quoting app. Eighteen percent indicate they have a mobile app for claims
and/or billing. Leading insurers are investigating how they can use mobile to achieve
their specific business objectives across the full spectrum – sales, service, and support.
The question for all insurers should not be, “What is insurance doing with mobile?” but
rather, “What is mobile doing to the insurance industry?” The companies that are
exploring the possibilities and staying on top of what is happening are the ones that will
continue reap the rewards.
Customer Expectations for a New Insurance Experience
There are endless opportunities for the use of mobile technology in the insurance
industry. Today, insurers offering mobile apps are viewed as innovative and customer-
focused. With the mobile market growing so rapidly, all insurers should anticipate that
most customers will soon expect their insurers to provide mobile capabilities in some
form. The mobile age customer will continue to be increasingly demanding, with
escalating expectations for advanced mobile applications – expectations that are shaped
both inside and outside the industry.
Figure 1. The Mobile Evolution in Insurance
Unfortunately, according to SMA’s research, the insurance industry is running behind
other industries in adopting mobile apps. Figure 1 depicts the current level of maturity
for mobile offerings among insurers and includes a scale that is useful for measuring the
rate at which insurers are embracing mobile technologies. Based on today’s state of
maturity, a majority (60-80%) of insurers fall into the “mainstreamers” category.
Source: Strategy Meets Action 2012

SMA Perspective
Page 5
A “master” insurer looks beyond basic mobile apps to create apps that will enhance the
full user experience, throughout the customer life cycle. These advanced apps use
multiple technologies and specific tools that change the way customers do business and
the way insurers interact with the customer. Insurers that fall into the “movers” category
are actively bridging the gap between mobile web enablement and basic mobile apps.
These “movers” are working to achieve some level of differentiation beyond the
mainstreamer. While it might feel comfortable for an insurer to be in a “mover” or even a
“mainstreamer” position today, the reality is that the capabilities that are associated with
a “mover” or a “master” today will be the very same capabilities that identify a
“mainstreamer” in the not-too-distant future. Mobile apps are rapidly becoming
commoditized. Insurers must embrace advanced mobile apps to stay ahead of the curve
in order to distinguish themselves competitively and gain productivity advantages.
Business Capabilities
Mobile imaging business capabilities have the capacity to revolutionize the way insurers
do business, incorporating a new ease and collaboration between currently segmented
areas within insurance companies. As evidence has shown, maximizing competitive
distinction in the area of mobile technologies will move insurers to prime positions in the
market. SMA’s 2012 Ecosystem research shows that most insurers are actively setting
strategies for profitable growth. To drive these strategies, they are exploring new ways
to make it easier, faster, and more appealing for the customer to do business with them.
Mobile imaging solutions do just that. To reduce operational inefficiencies and improve
the profit equation, insurers want to make certain they have accurate and reliable
information for decision-making at all points in the insurance processing cycle – from
quotation to claim to renewal. Mobile imaging solutions take images, which are
unstructured information, and turn them into accurate, usable, structured data. This
eliminates time delays, manual data entry, and error-prone keystrokes.
Differentiation for Growth and Profit
People want to do more business with a company that makes things convenient,
uncomplicated, and speedy. Using mobile imaging solutions makes it quick and easy for
the customer, and helps to improve both acquisition and retention. This is an excellent
example of how leveraging the right technology can indeed spur growth. Mobile imaging
capabilities enable a customer to get a quote, file a claim, and/or pay a bill – all through
a smartphone or tablet and a click of the camera. Mobile imaging makes it fast and
painless for the user. This is differentiation! And, at the same time that it is bolstering
brand image in the marketplace, it is taking a company to the next level of maturity in its
ability to turn the image into immediately usable, structured data.
New Ways to Reduce Cost
Mobile imaging technology offers a new type of cost reduction. The banking industry has
been using mobile imaging technology for many years, and has demonstrated the cost
savings that can be achieved by moving from paper checking deposits with a bank teller,
to imaged check deposits at ATM machines, and now to mobile check deposits from
anywhere at any time. The mobile-driven business model is built around being faster,
better, and cheaper. The data is right the first time. There are no transcription errors.
Insurers have an
opportunity to
revolutionize the way
they do business by
putting mobile imaging
solutions to work.

SMA Perspective
Page 6
Not only is the data captured from the primary source and turned into usable
information, the original source image is also stored. Accuracy and reporting capabilities
have been proven. Cost savings opportunities for insurers are enormous, as mobile
image capture can simplify manual workflows and reduce paper volumes, imaging costs,
keying and rekeying labor.
New Power for Business Processes
Mobile image technology has the potential to transform internal business processes,
particularly those that support sales and service. Just as significant as the positive impact
that mobile imaging technology has on the customer experience, is what it can do for
streamlining data capture. The possibilities for transforming insurers’ business processes
are vast. It is a catalyst for innovation. Insurers can rethink their processes with the
same creativity that they apply to customer interactions.
Insurers using mobile imaging think of a mobile camera as a replacement for a PC,
telephone, scanner, and printer all in one – as a picture that can be used to
communicate in a variety of mediums within a single transaction. Mobile imaging
technology successfully bridges the gap between the physical and digital world.
As insurers consider the new power in starting with the data capture portion of business
processes, rather than with the transaction, it is advisable to start with the images that
are available in the customers’ world. Figure 2 depicts examples of images that can be
leveraged as key data capture elements for insurance transactions.
Figure 2. Mobile Imaging and Insurance Business Opportunities
Starting with the image, converting it to structured data, and then integrating it with the
business applications affords many advantages. For example:
 Driver’s license images: Saves the insurer time and avoids error in data entry.
Can provide efficiencies in sales, billing, and claims applications.

SMA Perspective
Page 7
 Forms: Provides a new way to capture and extract information from forms such as
insurance declaration pages, insurance cards, and vehicle registration forms.
Accelerates transaction processing.
 License plate images and VIN numbers: Allows insurers to verify claims, and
enables accurate customer identification, quotes, and inspections.
 Personal check images: Reduces the lag time associated with mailing payments
and streamlines billing processes.
 Auto and home inventory: Enables the capture of information on home or
business property contents to create inventories, support insurance to value
initiatives, and improve damage estimation.
The above examples represent only a few of the images that the insurance industry is
using or exploring now. The door is open for redefining the way that the business
captures data. As Figure 2 demonstrates, an image of a driver’s license can
simultaneously impact billing, claims, and sales departments. This technology simplifies
the touch points and processes that are already in place by creating a standardized
image and data capture for the work of multiple business units – paving the way for new
synergies and shared efficiencies across business segments.
Technology Capabilities
Capitalizing on the value of mobile imaging technology capabilities can move insurers
beyond modernization and optimization and on to innovation in the mobile age. But
before insurers get started, the business, technology, and mobile strategies must be in
synch. Mobile apps should complement core business applications. It is imperative that
they work harmoniously. This requires a sound, integrated platform that will support
mobile imaging applications. As shown in Figure 3, IT must insulate the business
processes with security controls for data exchange and capitalize on technology
advancements that facilitate an environment for integration.
Figure 3. Technology Capabilities

SMA Perspective
Page 8
Because the mobile generation expects such high levels of service from the applications
they choose to use on their mobile devices, insurers cannot afford to develop these
solutions without working seamlessly across the business and IT sectors.
Meeting the Requirements for Flexibility and Agility
In recent years, there have been major advancements in mobile and the technologies
that augment and surround mobile such as cloud computing, mobile application software,
and imaging solutions. These advancements are paving the way for more sophisticated
and flexible capabilities. Insurers need the following key capabilities:
 Accuracy and speed – easy and fast capture of data with a high degree of
accuracy in extracting data from images. Skewing and dewarp extractions are a
must.
 Configurability and scalability – to adjust and adapt to changing insurers’
environments, both from a performance and scale perspective.
 SOA platform – easy plug and play and integration into insurers’ core systems with
web service-type integration.
 Agnostic – operability/compatibility with any network and any mobile operating
system, and support for any device.
 Security – protecting all insurer and insured data. As Figure 3 depicts, sound
security policies are critical to adoption of mobile imaging solutions. Advanced
security must be foundational to all business process enhancements. Without it, the
risk to users will be too high. A security checklist for mobile imaging solutions should
include:
 Strong authentication utilizing phone-key and username/passwords
 Ability to encrypt data and check images
 Server controls for deleting images
 Tight integration with insurers’ existing credentialing systems
 Secure Socket Layer (SSL) over the air
 SSL for all back-end web services
 Super admin capabilities to set various user levels for access and security
 Ability to restrict storage of data and images on smartphones
The preceding capabilities are essential for mobile imaging solution selection.
Differentiation Enabled by Technology
The opportunity for differentiation starts at the initial customer touch point, at the time a
mobile app is offered. Once the first advanced mobile app is delivered, the tone is set. It
is critical to be able to follow quickly with additional new apps once the first one is
successful. That means that insurers must be able to securely and easily roll out
additional apps and to use a plug-and-play approach to bringing them to market. This
requires an easy linkage to the IT platform, the ability to readily integrate with core
business applications, and secure data exchange. Insurers that are able to build a solid
technical platform that facilitates the mobile age will find the effort most worthwhile. It’s
the key to driving growth and profit through differentiation.
By capitalizing on the
capabilities of mobile
imaging technology,
insurers can move
beyond modernization
and optimization and on
to innovation.

SMA Perspective
Page 9
Mitek Systems®
Company Overview
Headquartered in San Diego, CA, Mitek Systems®
is a leader in mobile imaging solutions.
Mitek Systems’ software solutions allow users to remotely complete, in a single step,
transactions such as check deposits, bill payments, insurance quotations, and credit card
balance transfers. With a strong patent portfolio (twelve patents approved and five
pending), Mitek Systems is positioned as one of the innovators in mobile imaging
software. The company currently provides its solutions to several Fortune 500 financial
services companies. In addition, Mitek Systems has over one hundred fifty person-years
of research and development invested in mobile imaging technology.
Breadth of Functionality
Mitek Systems offers a full suite of solutions that enable property and casualty insurers to
deliver easy and convenient mobile services across the sales, service, and support
functions. The solutions use the camera on a mobile device (smartphones and tablets) to
take photos of documents, images, or personal information to eliminate data entry on
small keypads, and automate tasks – creating a superior mobile user experience.
The suite of insurance solutions available through Mitek Systems enables insurers to
deliver easy, convenient, and fun mobile services for both consumers and agents. The
solutions drive customer acquisition and retention, and operational efficiency across
claims, sales, and support functions.
For insurers, Mitek Systems offers four key solutions:
 Mobile Photo QuotingTM
– automates the insurance shopping and buying process by
taking photos of driver’s licenses, insurance ID cards, and Vehicle Identification
Numbers (VIN).
 Mobile Photo ClaimsTM
– streamlines the claims process by enabling customers and
agents to simply snap photos of customers’ driver’s licenses, insurance cards, and
license plates.
 Mobile Photo PaymentTM
– simplifies enrollment in electronic payment through
checking accounts or direct deposit for a claim reimbursement transfer by taking
photo of a blank check.
 Mobile Photo Document Capture & SendTM
– enables policyholders and agents to take
a photo of any document and send it as a high quality PDF to any email address or
fax number.
These insurance solutions consist of the following three components:
 Server based imaging and analytics software that analyzes, corrects, converts, and
reads document images,
 Mobile device-based (smartphones and tablets) software libraries that enhance
security and optimize the user experience with the camera, and
 Packaged professional services for implementation and best practices.
The first insurance implementation of the Mitek Systems solution was with Progressive®
Insurance, using Mitek’s Mobile Photo Quoting solution. This application uses the camera

SMA Perspective
Page 10
on a smartphone to automate the shopping and buying process for auto insurance. Using
the Progressive mobile application that is available for download, the customer can
simply enter their zip code and take a picture of their driver’s license, VIN, or existing
insurance identification card. Mitek Systems’ patented mobile imaging technology
automatically extracts relevant information from the documents and auto-populates the
fields in Progressive’s mobile quoting application. The user is able to confirm the
information and submit with the touch of the screen. Moments later, the customer
receives an auto insurance quote with the option to buy.

SMA Perspective
Page 11
Strategy Meets Action Commentary
The advent of the mobile age is presenting the insurance industry with a real opportunity
to embrace advanced mobile technologies for profitable growth. There are realistic
opportunities to improve business processes, significantly enhance the customer
experience, and create greater operational efficiencies. Given the speed at which the
demand and prevalence of mobile technology is moving across all markets, insurers must
embrace advanced mobile capabilities, and the sooner, the better. Insurers need to be
thinking about how to leverage this technology. A truly mobile age means that the
possibilities are endless. Now is the time to be looking both inside and outside the
industry for ways that solutions like mobile imaging technology can deliver
differentiation. Start by investigating the applications that businesses with similar
characteristics are finding of value. Look at what leaders in other financial services
segments are doing and investigate the results. Check out what is working well in other
industries where customer relationships and loyalty are highly important to success.
Mitek Systems offers “wow” mobile app options. The technology available through Mitek
Systems is resonating with insurers and taking them to the “master” level in the use of
advanced mobile apps. Mitek currently has proof-of-concept projects in progress with
several major insurers. Mobile imaging is a hot technology right now and it aligns well
with insurance business strategies. While it’s easy to see the value of mobile imaging
solutions in insurance today, it is important to expand the vision. As more and more
images are extracted and stored, the data increases in value. We are only on the
threshold of understanding its full significance for the industry. Insurers that want the
market and their customers to know that they are embracing the mobile age, and want
to differentiate themselves in the market, are likely to find that mobile imaging
technology is right for them. They should definitely investigate, conduct a proof-of-
concept, and consider the Mitek Systems offerings.
About Strategy Meets Action
Exclusively servicing the insurance industry, SMA is a new breed of strategic advisory
firm offering a unique blend of research, advisory, and consulting services to insurance
companies and to solution providers. By leveraging best practices from both
management consulting and research advisory disciplines, SMA’s advisory service
offerings are actionable, business driven, and research based – where strategy meets
action.
This SMA Perspective is a summary of SMA’s ongoing research on insurance leadership
levers, ECM and mobile capabilities in insurance. Mitek Systems has purchased
distribution rights for summary results of selected research and opinion.
Additional information on SMA can be found at www.strategymeetsaction.com. SMA
Founder Deb Smallwood can be reached at dsmallwood@strategymeetsaction.com or
1.603.770.9090. SMA Partner Mark Breading can be reached at 1.614.562.8310 or
mbreading@strategymeetsaction.com.
The insurance industry
should be looking both
inside and outside the
industry for ways that
advanced mobile
solutions, like mobile
imaging, can deliver
differentiation and profit.

Mobile Imaging in Insurance: Delivering Differentiation and Profit

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Mobile Imaging in Insurance: Delivering Differentiation and Profit