This is great news for the trio — the insurers, retailers and consumers because it provides numerous benefits over traditional insurance methods. First, embedded insurance is a new opportunity for retailers to engage with consumers. When you buy a product or service from a company that offers embedded insurance, you’ll know exactly what you’re getting before you make your purchase.
Second, it’s convenient for consumers as it is offered at the point of purchase— in other words, there’s no need to contact an agent or go through an application process as there would be in traditional insurance policies.
Finally, embedded insurance can be offered by retailers across multiple industries including automotive dealerships, payment, logistics and e-commerce sites like truQ, Payhippo, Oze, Float, Wakanow, Jumia and Konga which are looking for ways to offer more value to their customers without having them take out additional coverage plans outside their preferred retailer brand.
Across the globe, e-commerce is thriving. In Africa, the number of online shoppers has increased by an average of 18% every year since 2014, with similar growth anticipated over the next decade. IFC’s latest report shows.
Ultimately, embedded insurance is all about convenience. It’s convenient to purchase insurance at the point of sale. It’s convenient to have the insurance process integrated into the ecommerce process. It’s convenient to have the insurance process integrated into the logistics process. And it’s also nice when you don’t have to worry about your customers paying you back for their coverage — ask Payhippo 😎— that part can be taken care of by a third party technology platform like Curacel Grow!
Assurance from Grow — -> And if we do our job right, embedding insurance into your business will feel easy and natural — the way it should be when you want customers who are happy with what they pay for, and how much they get out of it in return! Sign Up!
In today’s digital world, this is a great thing for consumers: the ease of e-commerce (as well as banking, logistics, travel etc.) means they can buy what they need when they want and get it delivered right to their doorsteps. It also means that these consumers are looking for ways to protect their items from “theft and damage”. Those in logistics are protecting their customers with the Goods-in-Transit (GIT) insurance plans.
For instance, the insurance industry has responded quickly with products like embedded insurance that give customers peace of mind while they’re making purchases online or in stores (wherever credit card payments are accepted). These embedded protection plans are designed specifically for ecommerce transactions because the risks associated with them are different from those for brick-and-mortar purchases made with cash or check only at a local store.
Embedded Insurance can help retailers offer insurance at the point of purchase. When customers receive their item, they have peace of mind knowing that it is protected from damage or loss during delivery.
During 2020, the revenue generated by online shopping in Africa was estimated to be around 27.97 billion U.S dollars, an increase of over 6 billion since 2019. Statista.
You’ve got a customer in need, and you happen to be standing right there with the perfect solution. It’s like fate! But wait — you can’t just hand out insurance willy-nilly. Consumers want something more than just a coupon code; they’re looking for convenience, as well: “Embedded Insurance” is synonymous with convenience because it allows shoppers to get their needs met without having to do any additional research or sorting through different policies on their own.
When you offer embedded insurance at the point of purchase, not only are you satisfying this demand for an easy solution, but you’re also creating brand loyalty by showing your customers that you care about their well-being enough to make their lives easier. Your willingness to go above and beyond for them will make them more likely (and able) to return in the future. Talk about customer retention.
Embedded insurance is a new revenue stream that can be offered as an extension to other products and services. Embedded insurance can increase customer lifetime value by reducing attrition or switching among your customers, and improving the overall customer experience.
Insurance can be embedded in a variety of ways, including:
For example, say you have an auto rental company — e.g Autochek, that offers basic collision damage coverage with each rental contract. By adding GAP coverage (gap protection) as well as Rental reimbursement insurance through embedded options, customers could gain additional peace of mind on their trip without spending extra time filling out forms or shopping around for their next destination on top of everything else they may be doing during their vacation or business trip abroad.
Embedded Insurance is about providing value to the customer. It’s about convenience, which means it’s about creating a stickier relationship with customers who may be less likely to switch when they have additional needs.
What are some of the benefits?
Embedded Insurance is a win-win for both retailers and customers. For retailers, it can increase customer retention and customer lifetime value by providing peace of mind for buyers, who are more likely to continue using the product or service if they know it’s protected.
For customers, it’s an opportunity to get even more value out of their purchases — and what better way than by offering protection against something they care deeply about (like their smartphone or their goods-in-transit (GIT))?
Embedded means it’s already included with your purchase price — no need to spend more time filling out forms.
The benefits for insurance companies are clear: embedded insurance lowers the cost of providing products to customers. Being able to offer these benefits to their customers is great for companies and consumers alike — it lowers the cost of insurance, and it also creates a relationship between the company and its customers that goes beyond simply selling a product. Good customer service translates into better reviews, more word-of-mouth marketing, and higher sales.
Why wait? Experience the embedded insurance advantage. See how it works.
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