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Embedded and Beyond

Lifestyle Brand Insurance

Leverage your brand to increase customer lifetime value and year over year engagement. Increase recurring revenue while protecting customers and yourselves.

The Future of Insurance

One of the biggest opportunities for lifestyle brands that have clearly defined customer segments and a vision for the future lies in insurance.

Already many brands (think of travel, warranty and now automobile) are selling insurance with their products. Known as embedded insurance, it offers convenience to customers who can purchase what they need for insurance at the time they buy the item. Think of travel insurance with trip or warranty insurance with their smart phone. A little more complex but absolutely sound is the thought of automobile insurance with your car.

The 2 most mentioned advantages of embedded insurance include increasing average customer lifetime value and engaging with customers on a year over year basis

But building on the latest examples of embedded insurance, buying auto insurance with your car, we see the next level of embedded insurance as lifestyle brand embedded insurance. Why do we see opportunities for non-insurance retailers and e-tailers entry into insurance? It is all about Brand awareness and trust:

“only 58% of consumers trust their insurance company. That should tell you a lot about the insurance industry’s reputation,”

Christian Bieck, global research leader – Insurance, IBM Institute for Business Value

Brand awareness creates opportunity to convert more customers. Studies show that the brands consumers recognize most are more likely to be included in their consideration sets. This includes insurance.

75% of shoppers said they are more likely to purchase from a company that knows their name and purchase history.

Oct 22, 2019 Forbes – Revecka Jallad

Here is a brand observation in insurance. Although we are sure that J.D. Power is referring to insurance brands, we don’t see why it couldn’t be something far more meaningful to customers like their favorite and trusted non-insurance brand.

Brands recalled on an unaided basis are twice as likely to be considered and quoted than brands that are only recognized on an aided basis

J.D. Power 2019 U.S. Insurance Shopping Study SM

Consider that 9 of the Top 50 brands world-wide are Automotive Manufacturers and that over 50% are embedding automobile insurance in their products. Non-traditional but trusted brands can also benefit by

  • Increasing recurring revenue streams (with renewable insurance products)
  • Ensure that your customers are protected against events that can disrupt not only their operations but yours, too
  • Lower insurance costs for your customer base by working with Awywi – we’ll show you how

For Example:

The pandemic disrupted the food service industry from customers all the way up to suppliers. What was once the fastest growing industry in Canada to one that has lost $Billions in annual sales. Restaurants, bars and nightclubs as well as suppliers have already failed to withstand the pandemic.

Another example of the unprecedented challenges of the pandemic are the food suppliers (farmers). From being pinched by higher input costs due to supply chain issues to loss of consumer markets ($Billions in restaurant revenues). An article by Alicia Bowland – Agriculture in Canada will remain resilient amid COVID-19 pandemic generally sees farming in Canada has been relatively unscathed by the pandemic through government programs. However, it points out that,

“Under the current BRM [Business Risk Management] programs, losses resulting from the pandemic-related challenges may not be enough to trigger claims for coverage. Ker expects that the result of this will be that many farmers will have to self-insure in terms of production and labour losses.”

This all adds up to less money for farmers to spend on supplies, thus less money to suppliers. Unfortunate weather-related events triggered by Climate Change are severely impacting farmers in the form of floods to draughts. Not all events can be insured but it is in everyone’s best interest in the supply chain and customer base to ensure that as many risks as possible are mitigated.

In this highly connected world, the pandemic has stretched everyone’s imagination of what can go wrong, and fresh solutions are required to survive and even thrive.

If you are a lifestyle brand that is interested in exploring an opportunity for protecting your supply chain or customer base, please give us a call. Awywi silently works with top brands to expand their product lines, increase profit margins, increase lifetime customer value and year over year customer engagement. Awywi, as a licensed insurance broker, will manage the insurance regulatory requirements, insurance operations, insurers and agency personnel as well as our proprietary Insurance as a Service technology platform.