Why FinTechs should be implementing embedded insurance solutions

As consumers seek streamlined and simplified online experiences, providing them with embedded insurance at the exact moment they need will be crucial. This type of insurance has boomed in Asia, but now Companjon hopes to bring it to Europe. Matthias Naumann, CEO of Companjon, speaks to FinTech Global about the current opportunity.

Why is your type of add on insurance offering and automated claims so popular in Asia?

Regarding future-proof technology and innovation, the Asian market really drives this concept. Part of that reason is that while most of the innovative ideas for business models stem from Europe/US companies, Asia has a very good handle on implementing solutions at scale within its market. These new and unique insurance offerings really meet the needs of millennials and tech savvy customers offering the latest lifestyle cover with no fine print or hidden exceptions, fully digital experience, real time claims assessments, immediate payouts.

What makes it the right time for this type of insurance in Europe?

When it comes to tech adoption and delivering lifestyle solutions, Europe is significantly behind Asia. Also in Europe, we’re seeing a demand for digital driven needs that meet customers lifestyles and there are several FinTech players in the market who aspire to fulfill these needs from a banking perspective, yet they should consider going beyond banking services and accelerate their ecosystems with insurance offerings. In a world of fast growing FinTech platforms, fueling your own ecosystem is key for success moving forward. This is where Companjon is very well positioned from an insurance perspective, we operate fully digitally, creating a frictionless and hassle-free journey that leave customers empowered and compelled to purchase from that business again. Lifestyle solutions that bring flexibility, choice, enabling them to have full control of their cover. The insurance landscape in Europe needs to take charge when it comes to digitization and customer empowerment.

Could you explain how the solution works and how a FinTech could benefit from using it?

We help FinTechs and neobanks strengthen the interaction with their users, fuel their ecosystems and monetize their user base with unique solutions that integrate onto their platform. Utilizing event-driven interactions help these businesses become the sole interface they’re customers interact with. This includes full end-to-end digitization – start to finish, push and pull notifications about the solution purchased, dynamic offerings and pricing, automated claims and instant payouts. Ultimately this increases card usage, transaction frequency, customer retention and loyalty. Our core products for FinTech and neobanks include fully digitized classic solutions that fuel ecosystems.

  • Purchase Protection and Extended Warranty that are AI triggered based on the underlying transaction, giving customers the confidence they need when shopping for items using their card or payment platform.
  • Minute Match Flight Delay which kicks in after 20 mins a flight is delayed, a time when customers start to really feel that negative experience, we take care of this early on to ensure customers have a pleasant experience, unlike other businesses who activate the cover after 2 hours.
  • Phone Screen Protection which is digitally enabled, covering both new and used devices, allowing for FinTech’s to onboard all customers without the need of them having to purchase a new device. Our technology detects the screen cracks, assesses the damage and issues an immediate payout to the customer if detected.

Why should a FinTech company be looking to offer this type of insurance?

Like InsurTechs, FinTechs are tech disruptors reinventing the banking and finance landscape. They need to be considering add-on offerings that are in line with their current setup, goals, and values, far beyond what traditional institutions of today are doing. When it comes to offering insurance, it only makes sense that
it meets their customers digital lifestyles – being fully digital, flexible, requires no wait times or paperwork and empower customers through digitization. There is significant value for FinTechs to offer digital add-on insurance like ours on their platforms;

  • Increase customer interaction and card usage
  • Boost profitability
  • Differentiate your platform from the competition
  • Increase event-driven interaction frequency
  • Strengthen retention and conversion
  • Grow brand loyalty

Why should a FinTech company look to partner with Companjon and not a traditional insurer?

Fast growing FinTech’s strive to adopt to and fulfil the changing needs of their users. Companjon offers full flexibility as it designs and underwrites its own products meaning we’re fast and agile when it comes to delivering solutions and satisfying customers. And we fuel their ecosystems and fulfil these needs. For example, we at Companjon love claims, it’s why we’re different and there’s value for both our partners and their customers. Our technology setup is allowing us to leverage EDI, dynamic offerings and real time claims interactions. We offer FinTechs the opportunity to become the sole interface with their customers and further revenue generating opportunities.

What are some of the challenges you have noticed with companies trying to get this type of insurance to work?

Despite digital businesses operating digitally, they may not have the tech infrastructure or resources to manage by themselves and that’s why they come to us to handle the entire digital aspect, integrating our products seamlessly onto their platforms. Acting as the underwriter and risk carrier also means we carry the entire risk, and they outsource processes free from complexity. We even offer plug & play solutions to enable seamless transactions.

As FinTechs try to improve customer experiences, how important of a role will add on insurance have in this?

Solutions that match customers lifestyles and promise safety will be the driver to building trust. Being there ‘when life happens’ throughout the entire customer journey. Ultimately FinTech’s should be striving to empower their customers that will trickle down into satisfaction, retention and loyalty. The customers are the ones who matter most in the overall journey, and they need to have a positive, hassle-free customer experience. The claims process is notorious for being cumbersome, lengthy and overall, a negative experience. Where claims trigger without any customer effort and where refunds are instant creates peace of mind. Even though the customer might be disappointed that their trip or event was cancelled, they’ll be grateful that the payout process didn’t drag out. It’s flexibility they’ve always wanted from a digital platform.

Interested in learning more about insurance options for fintechs and neobanks?

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