Virtually any business can bring real benefits to their customers by offering embedded insurance. If your organisation offers a product or service that your customers might consider protecting with insurance, embedding an insurance offering into your online or in-person sales process can be greatly beneficial – for your customers and your business. Embedded insurance works by harnessing your rich consumer data and leveraging technology – to present your customers with an insurance offering that is perfectly tailored to the core item they are purchasing. Right at the point at which they will most likely be considering how to mitigate the risk of their purchase.
It provides a convenient, friction-free user experience, where clear and transparent insurance protection is arranged in real-time – all within your website, app or in store.
This protection could even be eventbased – i.e. parametric insurance – creating additional positive benefits for customers and even more transparency, in particular during the automatic claim process. For example, a ticket seller could embed insurance that pays out automatically if an event gets cancelled, or a flight seller could offer cover that gives automatic compensation if a flight is delayed or cancelled. These types of insurance differ from traditional insurance in that they use real-time data to automatically trigger claims.
Today, consumers of all ages expect the ‘Amazon experience’ of finding, purchasing and acquiring goods and services quickly and within just a few clicks – and insurance is no exception. With growing numbers of digital natives and customers comfortable with online insurance purchasing, insurance providers have responded by developing digital products and services that are simple and convenient.
Technology has revolutionised people’s experience with insurance and helped to change the way it is perceived. Demand for insurance is growing, with the pandemic further shifting insurance purchasing online. There has never been a better time for companies that haven’t traditionally offered insurance, to include it in their value proposition.
Consumers will increasingly buy insurance from non-insurance companies. They will look to purchase cover from the organisations they know, like and trust – those they already interact with in their daily lives. Thankfully, embedding insurance into your non-insurance business has never been simpler – and has never before afforded such significant opportunities.
Insurance will increasingly be embedded – so that almost all products and experiences are sold with insurance protection as part of their core offering2. In this way, customers will be more widely protected – by insurers and brands that genuinely care about their customers’ experience.
Embedded insurance allows businesses to offer insurance that is perfectly aligned with their core product or service offering – providing customers with the option to purchase cover that is relevant and easily accessible. The customer-centric nature of offering insurance in this way also extends to the speed at which it can be purchased, the transparency of the product offering, and the affordability of the cover. As well as to the way in which quoting, purchasing and claims all take place seamlessly within a businesses’ online portal, app or physical store.
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