Embedded insurance refers to the integration of insurance coverage into a non-insurance product or service, making it a seamless part of the customer experience. The insurance is typically provided as part of the product or service being offered.
An example of embedded insurance could be an airline booking company offering travel insurance as part of the purchase of a new airline ticket. Another example could be a car rental company offering rental car insurance as part of the rental agreement. In both cases, the insurance coverage is seamlessly integrated into the product or service being offered, making it more convenient for the consumer to access and use.
The traditional insurance model has its limitations - it is often sold as a standalone product, leading to low customer engagement and a lack of understanding of the product's value. This is where embedded insurance comes into the picture. It is designed to address the challenges faced by traditional insurance by delivering insurance protection in a more convenient, accessible, and affordable manner.
Enablers of Embedded Insurance
Insurtech companies such as EnsurTek has revolutionised the insurance industry. With the help of advanced technology, EnsurTek can enable embedded insurance providers to offer a better customer experience, streamline the underwriting process, and reduce operational costs.
Embedded insurance APIs allow insurers to integrate their insurance functions into other applications or platforms, offering insurance products and services through digital channels for easier customer access. This will allow a customer to purchase insurance coverage, manage their policy, and file claims directly from within the product application.
Embedded insurance APIs offer insurers new opportunities to reach customers and expand distribution channels while improving the customer experience with seamless convenience.
Conclusion
Embedded insurance is a rapidly growing trend in the insurance industry, offering a number of benefits to both customers and insurers. Evolving technology, increasing customer demand, and the use of data and analytics are all key enablers of embedded insurance and are helping to drive its growth.
Delivering insurance protection in a convenient, accessible, and affordable manner, it has the potential to increase customer engagement, improve customer experience, and drive growth in the insurance industry.
If you are exploring the possibility of offering embedded insurance solutions and seeking an advanced technology solution, we invite you to get in touch with us. Our team would be happy to engage in a conversation with you or to demonstrate our product firsthand.