Insurers are adopting the mobile technology due to its self-service capabilities as it allows customers to easily submit requests, claims or complaints and receive acknowledgement.

Mobile technology also helps insurers to inform clients speedily about promotions. Option of multimedia communications enables policyholders to submit on-the-spot digital photos to the workshop from vehicle accident sites to obtain same day repair cost estimates.

In addition, machine-to-machine technology such as telemetry enables insurers to introduce pay-as-you-use policies.

IDC advises insurers to be cautious when using mobile technology as the ongoing trend of Bring Your Own Device (BYOD) poses potential information risk for the insurance sector.

"Devices like the iPad and iPhone have unleashed a torrent of employees wanting to bring their own devices into the workplace, leaving IT departments with headaches around security and support," said Bryan Ma, associate vice president of Client Devices Research at IDC. "Fortunately, a large ecosystem of solutions has also emerged to help IT departments manage this new multi-OS multi-device environment."