The insurance industry is in the midst of a partner-building frenzy as companies large and small seek new ways to serve their customers and launch new products via the thriving, digital ecosystem.
Launched by Chris Bayley and Angus McDonald in 2014, Cover Genius is a global leading insurtech that specialises in embedded protection. It is currently partnered with leading digital enterprises such as Booking.com, Priceline, Intuit, Hopper, Ryanair, Turkish Airlines, Descartes ShipRush, Zip, and SeatGeek. The insurtech’s reach also extends to prominent online platforms like Amazon, Flipkart, eBay, Wayfair, and Shopee, the largest company in Southeast Asia and Cover Genius has a presence in 60 countries and 50 US States.
Helping to manage this rapidly expanding behemoth of partnerships, and create more connections, is Peter Smith, Vice President, Strategic Partnerships – Travel, EMEA.
What’s Cover Genius’s strategy when it comes to forging partnerships? What types of businesses do you seek out – and why?
Cover Genius is the leading insurtech for embedded protection and works with partners across industries, from fintech to travel to ticketing to logistics. We have teams that span the globe and we’re working on a number of new partnerships to help protect the global customers of the world’s largest digital companies.
While Cover Genius works across industries, we have a few focus areas, including the travel industry.
We look to partner with businesses that are digital-first and looking for new solutions to enhance their customer experience when it comes to protection for their customers. In some industries, the idea of embedded protection and customizable solutions is still novel. In the travel industry, however, embedded protection has been around for a while but companies are now realising that the legacy way of insurance is not serving their current customers. Travellers today are looking for dynamic options and convenient access delivered to them at the right place, at the right time and at the right price. As such, we want to work with partners that believe in the client-first approach.
Our partners are often also global in reach and looking to expand. We recently announced two travel partnerships in Latin America and the US, and our future partnerships will include global and regional airlines, from low-cost to full-service carriers, that have put an emphasis on adapting to the changing needs of global travellers with specific global needs. Many of our travel partners have turned to us because we are licensed or authorised in more than 60 countries and all 50 US states – we simply have that global reach and capacities.
The travel industry has taken a beating over the past few years (pandemic, etc). How is the insurance industry helping to revive things?
The aviation industry is still recovering from the largest crisis in its history. However, the pandemic was both a blessing and a curse for it. It was an opportunity for airlines, OTAs and others in the industry to reassess priorities and understand how to better serve their customers. It introduced an opportunity to adapt their offerings to the new demands from travellers – particularly, when it comes to trust and peace of mind.
Customizable, embedded protection in the travel industry has especially helped increase revenue streams but also helped create innovative solutions that catered to the chaos. COVID-19 forced Cover Genius to innovate and adapt quicker than ever before for the sake of our travel partners. We were able to develop a new suite of relevant insurance and protection products to provide peace of mind and aid the travel bounceback. Within weeks, we introduced COVID Cover to our partners, such as Ryanair, Agoda, Luxury Escapes, and Icelandair, to offer their customers protection when other traditional insurers simply couldn’t. Attach rates grew by 1,200% during that time frame.
Beyond COVID, though, airlines and travel partners are looking at ways to build confidence and value for today’s traveller. The traditional insurance industry’s way of offering protection is outdated. Airlines are looking for how to integrate with different technology models, to deliver an end-to-end customer-centric solution. Embedded protection helps overcome those challenges that can adapt in real time to delays, cancellations and other external factors. The travel industry is constantly changing and, as a result, constantly adapting. Customisable solutions that are using AI, NLP and other tech-forward solutions can adapt quicker than legacy systems – catering to the constant need for adaptability.
What’s the biggest challenge in the travel insurance sector today – and how is Cover Genius handling it?
Cover Genius began to help solve two key problems firsthand. At the time, there was no solution for distributing protection products to a global audience. Distributing insurance, warranty and other protection products with a traditional insurer meant there were geographic and product gaps that couldn’t be addressed or would take an unacceptable amount of time to deliver. These technical and legal issues still plague traditional insurers worldwide. Protection gaps from legacy insurers still exist, along with legacy systems that are slow moving and nearly impossible to customize in real-time.
We are now uniquely positioned as the only insurtech with global end-to-end capabilities. This means that we can bring a solution to market for a partner, from any industry, who wants to protect its global customer with any line of protection or warranty – regardless of their country, language or currency. We’ve focused extensively on acquiring the necessary licences or authorizations in more than 60 countries and all 50 US States to distribute insurance (and non-insurance) products. As an insurtech, we are able to create solutions with each individual partner to solve protection gaps that they are facing. If customers are looking for comprehensive coverage, or solutions that can be combined (bundled) based on their individual needs at that point in time, we can help cater to those needs.
What’s new on the horizon for Cover Genius over the next 12 to 18 months?
We’ve had a year of big growth and are excited about the road ahead. We have seen the number of policies sold more than double in just five months this year, and we don’t see this growth subsiding any time soon amidst consumer and economic uncertainty.
Our vision is to protect all of the customers of the world’s largest digital companies. We are entirely focused on key aspects of our growth, from the expansion of our award-winning XCover platform to our global reach to having the right people in place to achieve that. The travel industry in particular will also experience a lot of change and insecurity, so we’re here to find relevant solutions that will entice their customers back to the skies.
What inspires you in insurtech today?
The insurtech space is seeing tremendous growth which makes it an exciting industry to be a part of. For me, what inspires me the most is being able to truly deliver the customer-first experience for our partners.
When a partner approaches me with an issue they haven’t been able to solve that is causing frustration amongst their customers, I enjoy finding creative solutions that can start building that trust and peace of mind. It is a true partnership to help find the right solutions that cater to the needs of their customers but that can also help our partners. By embedding protection through our insurtech, we are able to handle the claims process end-to-end (from the distribution of products, purchase, administration and payout) which allows businesses to focus on other areas of their business and lead to increased NPS. The pain points for our partners are softened and their customers have come first which is really rewarding.
Interview by Joanna England
