Embedded insurance is the secret weapon for business growth

At Companjon we believe it’s time we looked at insurance as a driver for business growth, rather than just a guarantee for ‘when things go wrong.’ More importantly we believe there is huge opportunity, for digitally enabled companies to accelerate their ancillary offerings with unique embedded insurance that is end-to-end and fully digital in the present and post-COVID world. In a market heavily navigated by high customer expectations, safety, security and a need for hassle-free digital experiences, companies that pivot their current offerings and options to better align with new demands could gain considerably – increase revenue, attract new customers and drive conversion. In our latest EU consumer survey, we uncovered fascinating insights that every online booking and payments business should consider implementing if they wish to scale growth and differentiate in this competitive market. Here are 5 key points we learned,

1. Fully digitised insurance experiences with immediate payouts is what consumers want now

Our data shows that 2/3 of consumers favour digital insurance over traditional insurance due to instant fixed monetary payouts and that claims assessments are digital and automated,

2. Although gen z and millennials are most likely to purchase this type of insurance, gen x and boomers are also very likely to

We found that gen z (18-24 yrs) and millennials (25-40 yrs) favor embedded digital insurance due to automated claims, immediate payouts and the fact that non-traditional risks are covered. And when asked if you would purchase this type of insurance, 64% of gen x (41-56 yrs) and 58% boomers (57-65 yrs) chose 'yes'.

3. Hyper-relevant embedded insurance offerings increase customer acquisition and satisfaction for online businesses

For online travel, transport booking providers Flexible Cancellation was an insurance offering consumers are willing to switch providers for (up to 68%) and would be satisfied if it was offered (up to 77%). Delay Insurance also stood out with up to 62% of consumers will to switch for. The only way to provide consumers with the confidence to book is by giving them the flexibility to change or cancel their booking at no extra cost and ensure they don't have a negative experience, specifically when unexpected delays happen.

4. Digital embedded insurance offerings can create significant revenue opportunities for online businesses

Our data shows that consumers are certainly willing to pay 5-15% more for quality of service, flexibility to cancel and reliability of service. The data also points to consumers were less likely in 2021 to pay more to ensure Covid measures are met.

5. Unique embedded insurance offerings are desired by consumers and driving them to buy from providers who can offer them

We saw this across travel, transport, ticketing, fintech and banking industries where a high percentage of consumers confirmed that they would be satisfied if offered offerings including Travel Insurance, Flexible Cancellation, Delay Insurance and Cyber Insurance.

Hyper-personalised and digital experiences are set to become the norm

Nothing will kill loyalty faster than a gruelling and disjointed process when it comes to disappointments or delays – particularly if the rest of your customer experience is designed to be easy and intuitive. If a customer purchased Flight Delay Insurance for instance, insurance technology with proper third-party data can trigger an alert notifying that there will be a delay before the customer knows this. They are simply notified on their phone in a personalised message by the brand in question and once the delayed event has occurred, a payout happens instantly. Unlike before, the customer will be looking to engage with brands that bring these benefits and that help turn negative experiences into positive ones. An insurance partner that can adapt products and pricing to suit your unique offerings becomes not only an extra layer of protection, but a way to strengthen your overall customer value proposition.

Embedded insurance for a win-win revolution

One of the simplest, but most powerful points is that a B2B2C digital insurance model should benefit everyone involved, particularly the business partner who owns the major customer relationship. For the business partner, this means outsourcing the digital and tech capabilities to a licensed insurtech, increase revenue from selling insurance products on their platforms, increase brand loyalty and customer retention. And for the end customer, this means being seamlessly protected without any hassle, having a positive experience when a claim process is automated, and instantly satisfied when a payout is immediate - no paper-work involved.

Companjon is onboard to help drive the ‘win-win’ revolution. We believe that embedded insurance can give companies a competitive edge and cater to high expectations and desires.

Click here if you wish to access our latest consumer survey report for more findings.

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