Insurance can be a tough sell. It’s convoluted, related to a future risk that’s hard to imagine, expensive and seemingly needless. And on top of that, general public sentiment tells us consumers are increasingly distrusting of traditional carriers.
Executive SummaryWith recent surveys revealing that 60 percent of consumers prefer to buy risk protection from their favorite online retailers, and 70 percent of digital bank customers saying they're very or extremely interested in receiving insurance offers from the banks based on their transactional data, embedded insurance is the way of the future for optimizing the insurance sales journey, writes Darcy Shapiro, Chief Operating Officer for the Americas for Cover Genius. Here, she discusses the benefits that Cover Genius and other future-ready InsurTechs and their partners in retail, online travel, logistics, mobility, proptech and fintech are already experiencing—among them high customer satisfaction and greater data access for product innovation and customization.
Needless to say, traditional approaches that rely on paperwork for claim forms and payments as well as legal jargon that alienates users have accelerated the adoption of alternative InsurTech programs to deliver seamless digital experiences in a post-COVID world.
Enter embedded insurance, the InsurTech world’s answer to hard-to-understand policies that are purchased as a disconnected afterthought, creating those clunky customer experiences that run rampant among incumbent insurance distribution programs. It’s the future-ready technology that’s poised to emerge on top in a digital-first world, allowing software companies to meet their global customers exactly where they’re at while giving carriers greater exposure to a class of risk that performs better than direct channels.
Insurance, When and Where Customers Need It Most
Embedded insurance bundles coverage within a product, service or platform. Instead of being sold as a standalone product, the insurance policy is provided as an integrated component—usually at the point of sale or point of signup, either as an add-on to an underlying item in the customer journey or as an inclusion that gives peace of mind to the user when they join. Examples may include warranty add-ons in the checkout of a retail storefront, integrated contractors insurance for a driver joining a gig economy service, homeowners and renters insurance for property management software providers, or commercial landlords insurance that’s tailored to suit the needs of a short-term rental site.