Why Embedded Insurance is the Hottest Trend Right Now?
The insurance industry has been evolving rapidly over the years, with new trends emerging to meet the changing needs of customers. One of the latest trends in the industry is embedded insurance, which is an innovative way to integrate insurance products or services into non-insurance platforms. By doing so, customers can purchase insurance at the point of sale, without the need to go to an insurance company. This approach has gained significant popularity due to a range of benefits that it provides to both customers and companies.
Convenience
Embedded insurance offers a great deal of convenience to customers. With embedded insurance, customers can purchase insurance at the point of sale, without having to leave the website or application they are using. This not only saves customers time and effort but also enhances the overall customer experience. For instance, when purchasing a flight ticket, customers can easily purchase travel insurance at the same time, eliminating the need to go to an insurance company separately. This convenience factor leads to higher customer satisfaction and loyalty, which is beneficial for companies in the long run. Additionally, embedded insurance provides customers with a broader range of product options to choose from, which further enhances their overall experience.
Personalization
Embedded insurance allows for more personalized insurance products. By integrating insurance into non-insurance products, companies can offer insurance products that are tailored to the specific needs of customers. For example, when purchasing a car, customers can also purchase car insurance that is specifically designed for that type of car. This not only provides customers with more personalized insurance but also ensures that they have the right coverage for their specific needs. Personalized insurance products lead to increased customer trust and confidence in the insurance industry, which results in increased customer retention. Moreover, personalized insurance products can also help companies to attract new customers by offering them customized solutions that meet their specific needs.
Recommended by LinkedIn
Cost Savings
Another significant benefit of embedded insurance is cost savings. By integrating insurance into non-insurance products, companies can reduce the cost of acquiring new customers. This is because customers are more likely to purchase insurance when it is offered at the point of sale, rather than having to go to an insurance company separately. Additionally, companies can also reduce the cost of claims processing, as they have access to more data about the customer and the product/service they purchased. This leads to increased profitability for the companies and lower insurance premiums for the customers. Moreover, the cost savings achieved through embedded insurance can be passed on to the customers, resulting in greater affordability and accessibility of insurance products.
Future Outlook
As more industries adopt embedded insurance, we can expect to see even more innovative insurance products in the future. The insurance industry is undergoing a digital transformation, and embedded insurance is at the forefront of this transformation. Companies that adopt embedded insurance will have a competitive advantage in the market and will be better positioned to meet the evolving needs of their customers. By offering personalized insurance products that are convenient and cost-effective, companies can build trust and loyalty with their customers and set themselves apart from competitors. The rise of embedded insurance is an exciting development in the insurance industry, and it is set to change the way we think about insurance. Moreover, the adoption of embedded insurance will also lead to the creation of new jobs and business opportunities, further boosting the growth of the insurance industry.
If you’d like to know more about this or discuss further, feel free to reach out!
Co-Founder & CEO at Sigo Seguros
1yAny thoughts on why embedded has re-emerged as trendy after being part of the conversation in ~5 years ago? What is pulling it back into the conversation today?
This is a great article. I’d strongly urge brokers to take some time to explore embedded insurance. This is not about technology trying to impose on the traditional insurance market but a simple, effective, tool for brokers to use that can open new revenue streams, help clients differentiate and enhance and reinforce the client/broker relationship. TCi Futures Ltd was established for just this purpose - to give brokers access to new technologies to grab these opportunities with both hands. There is a reason that embedded is such a hot topic.
Health Insurance | Healthcare Financing | Business Advisory /Strategic Management |Social Impact
1yInsightful. Great read. But there is a social angle too
Director at Northernlight Surety Company
1yThere is so much more to embedded insurance. Just think of the synergy of marketing efforts and combined distribution channels of complementary insurance and non-insurance products. Or platforms that offer solutions to clients that combine services and insurance in one place. Embedded insurance has only started to take off.
Managing Partner, Insurance Solutions Group
1yIf you are not following Dogan Kaleli you should be.