The rise of embedded insurance has been attracting a lot of attention. Being able to buy insurance conveniently when you need it from a brand you already trust sounds enticing. However, the current types of insurance that are typically embedded are only the beginning. This is the one way to find out if anyone can really love insurance.
Embedded insurance is synonymous with travel insurance, product warranty insurance and now auto insurance sold with the vehicle. Most identify embedded, as the name infers, as insurance embedded within the sales journey of another product. In the examples above the products are travel, cell phones or other retail products and cars.
The most common reasons for non-insurers getting into embedded financial products, in this case insurance are:
- Increase Customer Lifetime value
- Increase Year over Year customer engagement and
- Ability to gather data and understand your customers better. This reason is often used in the embedded banking/financial services types of products but insurance also holds a lot of information about customers, too.
However, we see the opportunity as much larger than that. Firstly, in insurance, with the right operating model, there is a tremendous opportunity for non-insurance brands to increase their recurring revenue streams.
For non-insurance brands to fully exploit the opportunity for embedded insurance they have to move into larger insurance products. With OEM auto insurance, that has opened the door to that possibility. Personal automobile is the largest P&C line of business world-wide by premium volume.
However, most people aren’t buying new cars every day (or every year). Which leaves a lot of the auto segment untouched by OEM auto insurance. I still wonder why OEM’s stopped at auto insurance? People love their car brands. 9 of the top 100 brands in the world are automotive brands. Why not sell home insurance or really any other kind of insurance under their popular automotive brands?
The Opportunity is in Insurance Distribution
Assuming the risk as an insurer isn’t the best way for a non-insurance brand to approach insurance. The opportunity is in distribution – which is beyond bloated in this age.
The same goes for any popular brand that wants to enjoy all the advantages of this new opportunity. If infrastructure and insurance complexity is holding anyone back, that is no longer an issue. Awywi offers Embedded insurance as a Service that can be quickly implemented and embedded into your own customer journeys.
Awywi’s Insurance as a Service features Real-Time insurance fulfillment for all processes in the insurance customer journey. Quotes from multiple companies in Real-Time can be compared and any of them can be purchased and downloaded instantly – no waiting! If you need a policy change, no problem, just make the change and have your documents instantly.
Renewals are all requoted to ensure that the customer enjoys the best products at the best prices.
Home, auto, commercial, travel, cyber are all available for your customers as an embedded insurance as a service. Insurance at low costs, a simple & personal buying experience with brands consumers know and trust. Maybe customers can actually love insurance?
Download our whitepaper and find out why embedded insurance is the future.