Embedded Insurance is synonymous with convenience
The online driven surge from the COVID-19 pandemic has resulted in consumers being much more comfortable with doing their purchases online than ever before, and undoubtedly this trend will continue to grow exponentially. Dave Brune, President for the Americas, recently told PYMNTS.com that embedded insurance would be the big trend in digital commerce because of that comfort level in the marketplace.
Embedded insurance allows non-insurers, such as retailers, with the ability to integrate insurance solutions into their products. A recent PYMNTS.com survey highlights that nearly 50% of US consumers are interested in receiving transaction-based offers from their primary financial institutions. Through embedded insurance, Brune emphasizes the two-way value exchange i.e. the customers are better protected and the brands selling the insurance can build customer lifetime value and add a secondary source of revenue.
For any trends that we’re seeing, it’s all about convenience when it comes to a customer’s online experience. Brune illustrates that whether we’re focusing on making the claims process more efficient, or working with neo-banks to offer embedded insurance to help customers manage their risks or analyzing data to create new products, convenience is the primary driver. From our recent fintech survey report, 70% of digital bank customers and 44% of traditional bank customers want embedded insurance offers based on transaction bank data, and as Brune points out “it’s about going to one place instead of two. They just want to be met where they are.”
Lots of changes have been made in the insurance and insurtech space for the past few years and the pandemic has acted as a catalyst for many to embrace change. Ultimately, simplifying the customer experience with automated technologies like instant claim payments or embedding insurance on their favorite e-commerce site are improvements to the customer journey. Changes will keep amplifying to help improve the customer experience and add significant value along the value chain.
Key Video Highlights:
1:00 What are we seeing out there in terms of trends?
4:10 You’ve mentioned banks and financial institutions as the natural flow [for embedded insurance]. Are there other vertical or other industries and businesses that are looking to add embedded insurance?
7:21 you’ve mentioned making things better and optimizing the situation. What are you telling customers about the traditional insurers, how do you advise them to optimize the experience?
9:00 Are you saying that having a real or different experience when it comes to the commercial lines of the business, are there any changes there that stand out?
11:13 In the tech frontier (real-time payments technology and automation), what sort of change are those issues causing or bringing forth?