Top 5 Reasons to Embed Insurance for Renters

Published by the InsureCert Team

According to IBC, Between October 2020 and October 2021, the rental market universe grew by about 40,000 purpose-built rental apartment units (or 1.9%). Demand kept up with supply as the number of occupied apartments grew by roughly 41,000 units (or 2%), resulting in a stable vacancy rate. This represents a significant recovery in rental demand from October 2020. At that time, supply growth had outpaced demand growth by about  26,000 units.   

  1. Offer greater convenience. Renters should be asked to buy Insurance covering their negligence. There is little sense in landlords taking on unnecessary risk and increasing their chances of a claim causing nightmares at policy renewal. Embedded Insurance is an online program that can be configured for instant quoting, binding and certificate issuance. Including monthly payment options can also be leveraged to make the program 'stickier,' with recurring touch-points. Incorporating a monthly payment program will have higher, regular customer engagement and better retention rates.
  2. Add a new revenue stream. Embedded Insurance offers non-insurance people to grab a piece of the insurance pie. For example, branded referral programs are often created as partnerships between online booking companies and brokers. While insurance regulations used to be very strict about affiliate fees, those regulations have relaxed in many jurisdictions, making profit-sharing a possible point of interest for corporations that manage rental units. 
  3. Lower your risk. According to the III, about 1,425 homeowners policies have a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder(s) cause to others. Therefore, requiring tenants to carry a Liability policy makes good financial sense. In addition, when you embed Insurance, the technology can be set up to automatically include naming the landlord and property managers as Additional Insured. 
  4. Stay on top of who's insured. Today's insurance programs offer greater value and convenience through technology. When renters buy Insurance, brokers provide dashboards with text alerts, instant certificates and policy wordings. Renewal tracking is tedious, so using APIs to notify you when policies are renewed is a game-changer. Further, when renters miss payments and their insurance policy is cancelled. Landlords and managers can be notified the moment cancellations happen. 
  5. Handle claims easier. What good is requiring proof of Insurance if the claims handling is a total hassle? Insurance programs that capture many users and collect lots of premiums are valuable to carriers and brokers. Make them work for their money by connecting loss notices to insurance companies via API (Application Programming Interface) for free. Lower your claims management costs by incorporating these same APIs into local web apps, so you stay current.  

Today's technology can provide property owners connectivity straight into the insurance company, bypassing over-worked people who can slow things down. The best strategy is to work with a local broker you know that can leverage technology and who you can lean on when things go south. While technology can help us get information quicker, there is no substitute for an agent on your side. 

If you or someone within your organization has to deal with renters insurance, seize the opportunity for your company to grow its revenue and further appeal to your customers' needs. 


To learn more about growing your revenue with digital insurance programs through InsureCert, contact us, or signup for a program builder account and start building your embedded insurance technology solution today. 

More from InsureCert

Embedded Insurance: The Top 5 Things You Need To Know How To Make It Work 

Embedded Insurance, part of a broader movement toward Embedded Finance, is about getting more affordable, relevant and personalized.

Within Property & Casualty alone, Embedded Insurance could account for over $700 Billion in Gross Written Premiums by 2030, or 25% of the total market worldwide, and for those that enable it, $3 Trillion in market value. According to Simon Torrance, author of New Growth Playbook. All players – insurers, banks, fintechs, investors, non-financial retailers, product manufacturers, service providers, digital platforms and software companies - should look carefully at this fast-emerging space and define strategies of 'where to play' and 'how to win'.

"The idea behind embedding insurance is that it brings coverage to people who have already established a relationship within a non-insurance company or service provider," adds InsureCert's CEO and founder Craig Arnatt. 

With a growing digital economy and changing demographics, embedding Insurance into consumer products has effectively provided added relevance while offering a simplified customer experience. Think Expedia, one of the first e-commerce sites to embed Insurance; users who buy airline tickets are given an offer to purchase optional travel insurance at checkout. 

Why Embedded Insurance Works

According to Boost Insurance: offering embedded Insurance as a complement to your existing products or services is a great business opportunity. You may not be selling plane tickets or crypto, but chances are you're offering something that Insurance could protect. 

How can every company become a part of embedded Insurance. 

1. Work with an InsurTech-enabled broker who understands your business model. InsureCert enables brokers to bring embedded insurance products direct to consumers using custom applications that offer co-branding opportunities. You can dramatically increase your value by seamlessly integrating innovative insurance products into the customers' purchase journeys at a low cost. 

2. Know your customers.  – individuals and businesses are generally underserved by the insurance industry today. Suppose your product or service requires users to be insured, but you are not offering an embedded solution. In that case, you are missing the opportunity to provide consumers with the financial security insurance offers and tell your users that you care. 

3. Assess the big picture
: the best way to execute, in terms of delivering embedded Insurance, is to discuss customer support and claims management processes with your broker. There is little befit to your company's reputation if the carrier you are funnelling premiums to cannot satisfy basic claims handling. We've all heard of insurance claims nightmares, so work with your broker to incorporate a third-party adjuster or TPA. TPAs are independent claims adjusters who act as unbiased parties between the consumer and carrier. The TPAs job is to eliminate frustration by the consumer and will work to remedy claims that go sideways. 

4. Organize a good rollout
: ensure you have the correct organizational setup and incentives to effectively manage your embedded insurance program. For example, consider adding live chat to your website monitored by a licensed agent who can answer questions about the coverage wordings. As it is against most State and Provincial regulations to sell Insurance using unlicensed staff, lean on the broker facilitating the policy transaction to be ready to support clients online. 

5. Monitor growth by looking for new opportunities
: testing and iterating on all fronts as you move forward is the key to an excellent embedded insurance program. If clients are getting hung up on a poorly worded question or not finding critical information, they can often bound off the page, and the sale is lost. Using a combination of InsureCert Reports and Screen Recording, stakeholders can view real-time customer interactions and receive daily data feeds. Then, make adjustments to questions to make them more transparent or create better access to information to give consumers confidence that they are on the right path. 

About InsureCert 

InsureCert's mission is to build a better front-end for Insurance that enables open and accessible technology for MGAs and brokers. The company's No-Code Platform is a next-gen insurance solution that can embed Insurance into any website using APIs that connect to payment gateways and rating services. Both large and small agencies use InsureCert to automate insurance quotes and certificates using consumer-driven policy dashboards and agent portals.  

Insurance Certificates Anyone? Why we are here

The insurance industry is amid profound change fuelled by converging trends that are creating leaps in innovation and disrupting traditional business models. As a result, insurance is ripe for repositioning in the digital age. 

How many people claim, "I love shopping for insurance" when someone or something forces them to buy an insurance policy. I am sure it's right up there with booking your next Hawaiian vacation or configuring your new car. But, no, for many insurance is the last thing they want to worry about, whether it is paying too much or not getting the right coverage.  

The insurance industry is amid profound change fuelled by converging trends that are creating leaps in innovation and disrupting traditional business models. As a result, insurance is ripe for repositioning in the digital age. 

To ease the transition, InsureCert's thoughtful leadership and insightful design team offer consumers a new generation of solutions that seamlessly integrate and adapt to specific needs. In addition, this approach will align with the emergence of flexible platform-as-a-service architecture commonly found in other industry segments and InsureTech startups.

Based in Vancouver, Canada, InsureCert is a software development company working on decentralization and transparency solutions for the insurance industry. A worldwide patent has been filed to protect the intellectual property behind InsureCert, giving the company a unique opportunity to become "the go-to" platform for evidencing insurance using shared ledger (blockchain) technology. The company is helping consumers and business owners make smarter financial decisions by creating an encrypted insurance wallet that recommends coverage and manages workplace compliance. InsureCert's mission is to transform opaque, centralized workflows into decentralized peer-to-peer solutions.


Why InsureCert?

InsureCert's distributed web application technology delivers online insurance products saving carriers, MGAs and brokers money on order processing. For insurance IT teams, it will mean quicker distribution of insurance certificates with private-key validation to ensure that policies are current and accurate. For brokers, it will mean increased revenue through cross-selling and better client retention. Finally, for consumers, it will mean peer-reviewed carriers, better risk management, sound advice, and an excellent way to stay up to date with policies and manage claims through your mobile device.

InsureCert is an Insurance Software-as-a-Service sales platform that converts low-margin program business into scalable profit centers. The company was founded by Craig Arnatt, who identified a need for brokerages to transform how they handle program business. Today, his growing team of coders works with insurance carriers, MGAs and brokers worldwide, building modern digital InsureTech solutions. 

Many insurance companies are writing small premium business that garners minimal margin and places a drag on their back office. The cost of continually staffing, rating, invoicing and generating proof of insurance certificates is a significant pain point for all stakeholders. With 1 in 25 E&O claims involving inaccurate certs and 21% of insurance fraud involving misrepresenting coverage, a real-world problem requires a solution. Until now, there hasn't been an easy way to handle online sales, policy expiry reminders and universal validation.  

InsureCert's Mobile First Platform provides next-generation insurance solutions for business owners on the go.  


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