In June of this year, the Imburse team attended ITC DIA Barcelona 2023, the largest insurtech event in Europe. The event was buzzing with tech entrepreneurs, investors and insurance industry incumbents from across Europe and beyond.
There were 12 core themes of ITC DIA Europe, three of which were Next-Level Customer Experience, Digital Transformation of Distribution Channels, and Commercial Insurance Innovation.
One of the hottest topics at ITC DIA Europe was embedded insurance, as shown by the talk show piece “Embedded Insurance: the death of traditional insurance?” and also at The Embedded Insurance Forum led by the Open & Embedded Insurance Observatory; this included a selection of incredible keynotes, panels, and discussions around the global applications of Open and Embedded insurance.
Embedded insurance is offering insurance services alongside other products that customers are purchasing, such as when booking a holiday or buying a car. Customer experience is a huge focus with embedded insurance since the aim is to provide a service when it is most relevant and desirable. Our previous article explained examples of embedded insurance, along with the benefits and some of the challenges.
EY recently stated that, “No longer a “nice-to-have” future consideration, embedded plays represent customer-centric convergence between products and services, thus becoming a competitive imperative. Within five years, more than 30% of all insurance transactions will likely occur within embedded channels.”
Greater digitization has revealed the shortcomings of unsuccessful joint ventures (undifferentiated features, high costs and fragmented customer experiences) and encouraged more non-insurers to explore embedded insurance. These brands typically enjoy higher levels of trust, have larger and more loyal customer bases, and face fewer legacy issues than insurers do. These are huge advantages for any company looking to expand its portfolios of offerings.
EY also noted that instead of only perceiving these firms in other industries as just another channel, insurers should explore new partnership and collaboration options.
They listed the below sectors as being ready to embrace embedded insurance:
In Q4 2022 Boost surveyed 650+ US consumers. They asked about their experiences with insurance, how they felt about their options, what mattered most in their insurance purchases, and more.
Here are the top 3 things that they learned from the consumer survey results:
“To make sure the customer experience is seamless for embedded insurance; insurers have to remember they are an enabler in somebody else’s customer journey.”
Embedded insurance is a commercial partnership which generates net new revenue for the retailer or ecommerce company. Not only can they sell products, but also earn a commission from selling the insurance.
With embedded insurance, the insurable interest topic has been solved. Customers are in a frame of mind to buy, and they are buying something they value, so the likelihood of selling insurance in that context is higher than if insurers try and sell it themselves.
Insurers of course know how to do insurance; however, it can sometimes be challenging to seamlessly embed insurance within a retail experience.
It’s crucial for insurers to remember the customer journey is owned by someone else instead of themselves. Insurers are second in the embedded insurance engagement, and they will benefit from it due to somebody else driving an excellent customer journey conversion as top of mind. They are in a moment where they generate money, which is extremely important to retailers.
They need to accept point one and contribute in terms of point two.
To make sure the customer experience is seamless; insurers have to remember they are an enabler in somebody else’s customer journey. In addition, often the industries that insurers are selling in are ahead of the insurance industry in terms of customer experience. So, it is important to be adaptable and contribute to these journeys without being a disruptor.
The second point that insurers consider with embedded insurance is how to make this seamless experience possible on a technological level. Offering the insurance product within how other companies operate requires suitable technology.
This becomes especially important concerning payment, the endpoint of the customer’s journey. Payment is often going to be the most critical next action that the other brand optimizes heavily around, such as with basket conversions so, anything an insurer does has to be to the highest standard when it comes to payments.
Assisting insurers with streamlining payments is where companies like Imburse come in.
Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.
In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.
Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.
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