Embedded insurance has been gaining ground lately, with more embedded insurance options being offered to consumers when they purchase products. The ease and convenience of embedded insurance make it an attractive option to customers and insurers alike, as customers can be offered insurance options like the best life insurance or best auto insurance with another product.
As embedded insurance evolves, insurers should utilize embedded insurance to reach a wider consumer base looking for an easy way to get insurance. Read on to learn more about the benefits of embedded insurance and how insurers can leverage it.
How Insurers Can Leverage Embedded Insurance
There are several ways insurers can leverage embedded insurance. Some options have already been implemented or are in the process of being implemented. Offering the best car insurance at checkout for a rental car, for example, is already a common type of embedded insurance and allows customers to easily and quickly get insurance without having to fill out additional paperwork.
While buying car insurance during a rental car checkout or when financing a new car is standard and is what most people likely think of when thinking of embedded insurance, there are a number of new avenues beyond car insurance to explore with embedded insurance.
One of the main ways insurers can leverage selling embedded insurance on products, whether life insurance or motorcycle insurance, is by partnering up with trusted third parties.
If, for example, you are signing up for a retirement plan from a trusted bank, you are more likely to consider buying a life insurance policy if the process is streamlined and able to be completed as an add-on to your retirement plan.
Another way insurers can leverage selling embedded insurance is by creating innovative insurance products. For example, there are new programs that allow renters to buy renters insurance and provide proof to their landlord all at one time. Insurers who take advantage of a growing market for embedded insurance will do their best by seeing where the need is for quick and easy insurance.
Benefits of Embedded Insurance
Why should insurers look to leverage embedded insurance? There are a number of benefits. One of the first benefits is that it allows insurers to reach a much wider market of consumers, as others can sell insurance on the insurance company's behalf. For example, a bank employee can go over the merits of a life insurance policy and sell it rather than an insurance agent.
And since the majority of consumers like the ease of buying multiple products all at one time, such as adding on insurance to a car at the time of purchase, offering a more streamlined product is beneficial for both insurers and consumers.
Embedded insurance also gives insurers the potential to grow economically. There's no need to build new buildings or hire new insurance agents with embedded insurance. Instead, insurers can take advantage of existing outlets and partnerships to expand their marketplace.
In today's fast-paced world, people are looking for convenience. Embedded insurance, if used correctly, can meet the need of many consumers by protecting their assets at the click of a button. Over time, insurers should continue to leverage this market to make the most out of the growing need for quick, easy access to insurance.