What is embedded insurance?

You’ve heard the term, but what does it mean?

Embedded insurance seamlessly integrates insurance products into the customer journey of other goods and services. This innovative approach is transforming the insurance landscape by making coverage more accessible, relevant, and convenient for consumers.?

From income protection bundled with savings accounts or credit scoring apps, to warranty protection offered alongside electronics purchases, embedded insurance is becoming an integral part of the customer experience in various industries.

As this trend gains momentum, it's not only disrupting the traditional insurance model but also causing ripples throughout the embedded finance industry. By leveraging data and technology, embedded insurance providers are able to offer more personalised and context-specific coverage. This evolution is forcing established players to adapt and creating new opportunities for partnerships between insurers, technology companies, and businesses across various sectors.

The Nitty Gritty: How Embedded Insurance Works

Embedded insurance operates on a simple yet powerful premise: integrating insurance coverage directly into your customer journey.

Here's a breakdown of how it typically works:

• Integration: Insurance products are integrated into the customer journey of non-insurance goods or services. This integration can occur on digital platforms, at point-of-sale terminals, or within product offerings.
• Customisation: The insurance offering is often tailored to the specific product or service being purchased, ensuring relevance and appropriate coverage.

• Seamless Purchase: Customers are presented with the option to add insurance coverage with just a few clicks or even automatically, depending on the implementation.
• Data Utilisation: The primary transaction provides valuable data that can be used to personalise the insurance offer and streamline the underwriting process.
• Claims Processing: In many cases, the claims process is simplified due to the direct link between the insured item and the coverage.

To learn more about how embedded insurance could be seamlessly integrated into your platform, increase your passive revenue and amplify your market presence, reach out to our partnerships team.