There's a new way of protecting customers through embedded insurance and the pandemic has changed the way we view protection. Omamuzo Samson
To drive insurance adoption and inclusion, we can all agree that technology plays an important role. The most successful technology companies benefit from the 3D’s: distribution advantage, data advantage and the ability to delight customers.
According to McKinsey, 80% of insurers made a negligible or negative economic profit in the years running up to the Covid crisis and, projecting forward, the situation is likely to get worse.
Let's try to look at each of these advantages:
Now, when a company pushes the product of consumption (ecommerce), using data to create new types of products and embedding it into the customer journey will benefit from the 3D’s. Technically, this is 'Embedded X"; where 'X = consumer product'.
Embedded insurance offers protection at the point of purchase in a customer journey. To put it simply, it's bundling of insurance coverage within a product or service itself, offered at the point of sale or service.
Curacel is able to protect the customers of digital companies using our award-winning Grow distribution platform.
Curacel Grow enables companies - ecommerce, fintech, logistics - to increase recurring revenue by offering digital, embedded insurance products to their users at the point where it is crucial.
"Curacel Grow x Partner = Increased Revenue + User Retention"
Traditionally, insurance tends to be an unusual relationship with the customer and purchasing directly from insurers. The customer journey flow has been a big hindrance to the growth of insurance adoption. This second step makes it inconvenient and leads to underinsurance.
To drive up insurance adoption and inclusion, the way it is sold must change. The process and duration it takes a user - returning or new, should be easier and faster at each interaction.
The actual insurance opportunity is under-addressed and we need to be looking for a new way forward for an industry that looks like it is at a tipping point. There should be a change in how insurance is sold or bought.
For example, as an ecommerce company, a user that bought a high-end electronic product - iPhone, from you should immediately have the option to insure the product without leaving your platform.
The coverage for such gadgets can be for theft or accidental damage depending on the available policy provided and agreed upon by the insurer and the company.
A user booking a flight ticket is given an option to buy travel insurance.
These embedded insurance products are already being offered online by leading e-commerce companies like Jumia, and operators of popular mobile apps for ride-hailing, logistics (delivery), travel booking, payment or other services, amongst others.
That's what creating and adding value while delighting your users is all about.
Global research conducted by Cover Genius showed 78% of digital bank customers are highly interested in receiving bank-embedded offers, with 49% of people selecting ‘Convenience’ as their primary motivation.
As earlier noted, convenience is critical as it removes the second step in the insurance cover purchasing journey and corroborates the reason why under-insurance is so rampant in the first place.
If you would like to learn more how Curacel Grow can be embedded into your business, kindly fill this form or send an email to email@example.com
We've stepped into a new era of protection, spurred by the pandemic, that is, the digitization of insurance.
The new way insurance is sold, purchased or owned is not only due to the pandemic but first and foremost, speaks to what has changed in the relationship between a company and its customer.
Companies are stepping up to start offering their customers peace of mind through embedded protection and customers are eager to take advantage of such offers in a seamless one-step process.
Embedded insurance helps to close the insurance protection gap – the difference between the level of coverage that is economically and socially beneficial and what’s bought.
Curacel Grow powers the next generation of insurance experience. Curacel technology is being purpose-built to easily embed insurance products within other digital experiences.
From life and health to auto and home insurance, Curacel and its network of leading carrier partners, make it easy to offer a roadmap of insurance products to your customers and earn recurring revenue.
If you would like to learn more how Curacel Grow can be embedded into your business so that you can start benefiting from the 3D's - Distribution advantage, Data advantage and Delight your customers, fill this form or send an email to firstname.lastname@example.org
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