Affinity Insurance

Affinity insurance is a kind of optional coverage that is offered to protect a product or service against various risks, such as breakage, loss, theft, cancellation, etc.

It is a type of insurance program that is offered by organizations whose core business is not insurance to their customers, members or franchisees.

What’s the point of affinity insurance?

Affinity insurance is supplemental insurance that companies offer their customers and that is taken out at the time of purchase of a consumer good or a specific event.

This optional coverage can be taken out by the end customer or covered in full by a company that wants to offer it as a free gift to its customers.

There are many real-world examples of Affinity Insurance:

• Coverage of a high-tech product against breakage, breakdown or theft
• Coverage of a household appliance against breakage during transportation, installation and use
• Cancellation or repatriation insurance
• Breakdown, flat tyre and deductible buy-back coverage for a car, and the list goes on

Affinity insurance offers numerous benefits for both organizations and their members.

For Organizations,

• It serves as an additional revenue stream through commissions or fees generated by offering these insurance products.
• It also enhances member engagement by providing valuable insurance options that meet specific needs, thereby fostering greater loyalty.

For Members,

• It is offering cost savings through group-negotiated rates, which are often lower than individual policy premiums.
• The coverage is customized to meet the group's specific needs, providing more relevant and comprehensive protection.
• Additionally, obtaining this insurance is easy because it is available through trusted organizations that members are already familiar with.

Regards, Kavan Mehta

Source - #internet