CUSTOMER EXPERIENCE ( CX )
E mbedded insurance refers to the seamless integration of insurance coverage into the purchase of a product or service , providing protection automatically at the point of sale . This approach simplifies the acquisition of insurance by bundling it with the primary product , eliminating the need for separate insurance transactions . By embedding insurance into the buying process , companies can enhance customer experience , offering convenience and immediate protection without additional steps .
This model is particularly beneficial in various industries , such as automotive , travel , electronics and real estate . For instance , when purchasing a new smartphone , embedded insurance might cover damage or theft from the moment of purchase . Similarly , buying a car could automatically include coverage for accidents or repairs , streamlining the overall buying process .
The necessity of collaboration The success of embedded insurance hinges on collaboration between modern insurtechs and traditional insurance incumbents . Marat Nevretdinov , Managing Director of HDI Embedded , states : “ Insurance was slower to undergo digital transformation than many other industries due to strict regulatory constraints , the complexity of its processes and quite simply because there wasn ’ t the competition to drive it .”
The insurtech industry has experienced rapid growth in recent years , driven by customers ’ increasing demand for simplified , digitised and personalised
insurtechdigital . com 133