Embedded insurance and the customer journey

ITC DIA Europe at a glance

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.

What is 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.

Why is embedded insurance important right now?

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:

  • Original equipment manufacturers (OEMs): automotive, agricultural equipment, appliances
  • Health care and pharmaceuticals: life sciences firms, medical device manufacturers
  • Real estate: property owners, investors, management firms
  • Financial services: banks, credit card companies
  • Travel and hospitality: airlines, cruise lines
  • Retail: consumer electronics, restaurants

Embedded Insurance Consumer Research

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:

  1. Consumers want to buy insurance from non-insurance brands: 73% of respondents had either already bought insurance from a non-insurance brand, or would be interested in doing so.
  2. Convenience is king: 59% told that they’d be more likely to buy insurance if it were offered digitally, as part of a related transaction.
  3. Insurance is sticky: 62% of respondents said that when a retailer offered protect-your-purchase options, they were more likely to be repeat customers.

“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.”

A commercial partnership with mutual benefits

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.

A different type of customer journey

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.

What do insurers need to keep in mind?

It is somebody else’s customer journey

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.

Seamless customer experience requires the right technology

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.

How Imburse Can Help

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.


Oliver Werneyer

Oliver Werneyer is the founder and CEO of Imburse. Before founding Imburse, Oliver held various roles in the insurance industry, with the likes of Liberty Life, Swiss Re and Genworth.

Share to: