CUSTOMER EXPERIENCE ( CX )
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Four key success factors shaping the future of embedded insurance
the insurance market , with leading technology brands setting the standard for personalised and intuitive experiences . “ This is now expected in the insurance space too , meaning incumbents have needed to step up when it comes to digital transformation ,” says Marat .
As Meeri Savolainen adds , a better customer experience means noninsurance companies can potentially increase customer loyalty and generate additional revenue streams through commissions or referral fees . “ Insurance offered at the exact time it ’ s needed is a compelling proposition for customers , keeping them within a ‘ walled garden ’ provided by the company with the most convenient and comprehensive package .”
This shift is significant . With advanced technologies like AI , automation and blockchain powering customer journeys , traditional insurers require a complete overhaul of operations to enable faster and more efficient processes . “ Robust cybersecurity measures to protect customer data and maintain their trust are a big part of this ,” Marat continues . “ So too is gaining a better understanding of customers ’ individual needs and offering more personalised services that can build both loyalty and trust .”
Embedded insurance arises from these new expectations and the need to improve customer experience . “ It aims to make insurance products more robust by consolidating multiple types of coverage into a single policy , offering cost savings and customisations to fit the specific needs of each customer . Yet all the consumer sees is a simple and easy add-on that removes hassle and does all the hard work for them ... It ’ s this seamless customer-centricity that makes embedded insurance so competitive ,” says Marat . “ For customisation and more bespoke policies , data is key . We owe access to this information to open banking , which enables third parties to access a user ’ s financial data ( with consent ) and make embedded services like insurance far more personalised and relevant . For example , customers can apply for a loan or check their credit score within an e-commerce application , making the customer journey smoother and enhancing the user experience ,” Marat concludes .
Leveraging significant life events Significant life events or major purchases often increase consumer interest in embedded insurance offers . Russell Corbould-Warren , VP of Insurance at Cover Genius , explains : “ For most consumers insurance is still a ‘ grudge purchase ’. The
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