For insurers, the overriding challenge is to improve the experience of undecided or indifferent customers by delivering better outcomes – something that is particularly important in the current economic environment, with spiralling costs putting additional pressure on household budgets and many consumers understandably uncertain about product purchases.
With more and more non-insurance brands beginning to have an appetite to offer insurance as part of the customer purchase experience, therein lies opportunities for insurers to partner with these brands and meet potential customers through new distribution channels, which previously may have been an afterthought.
Embedded insurance has attracted strong interest from leading insurance providers and distribution partners as a new frontier expanding the reach of insurance. Crucially, it has the potential to deliver relevant coverage exactly when customers are most likely to recognise its value and the real-time experience it offers – whether that be a new car that comes with motor insurance included or pet insurance where a more holistic approach is needed – where the key is to connect innovative and relevant products with customers at precisely the right time in their buying journey.
Rob Savitsky, Duck Creek’s Director of Product Marketing, and Shreyas Vasanthkumar, Managing Director for EMEA, recently hosted a podcast with Simon Torrance, a specialist in business model innovation, to discuss the significant potential for embedded insurance as part of Duck Creek’s Conversations on the Creek podcast series.
In a wide-ranging discussion, Simon, Rob and Shreyas explored several topics, including why the embedded insurance industry is projected to grow to over US$700 billion in premiums by 2030, how insurers should be thinking about their brand as they consider white labelling their products and partnering with non-insurance brands (including some example case studies) while remaining customer-centric; and what kind of technology is needed to support embedded insurance.
Simon opened the discussion by commenting, “The industry has found it very difficult to get closer to customers, make product purchases interesting and engaging, and be fast and flexible enough to create solutions which solve protection problems for them. There is a golden opportunity to re-think the business model, not just from a commercial point of view but for all of us (individuals, businesses and governments) who need protection. It is clear that the gaps between what we need and what we have are getting wider and wider as risks become more complex, the global population continues to grow, and major systemic challenges remain – and embedded insurance, with embedded finance, is a way of doing that.”
Listen to this fascinating podcast: