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.
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.