How to Succesfully Embed Insurance into Your Financial Services App

Integrating embedded insurance into your financial services can boost your value, engage more customers, and create new revenue streams. But navigating this complex landscape can be tricky. In this article, we’ll guide you through the key steps for successfully embedding insurance and show how Indeez can support you every step of the way.

What is embedded insurance?

Let’s start from the basics. Embedded insurance seamlessly integrates insurance coverage into the user experience of products or services, making it a natural part of how customers interact with these offerings. Banks and fintech companies can adopt embedded insurance as a digital solution, incorporating it effortlessly as an add-on or integral part of their service offerings.

Unlike the traditional way of buying insurance separately, embedded insurance places coverage into the products or services you’re buying, making the process seamless and convenient. This digital solution eliminates the extra step of shopping for insurance afterward, ensuring you have the option to be covered right from the start.

3 Key Tips for Successfully Embedding Insurance

1. Leveraging Brokers Effectively in Embedding Insurance

Although choosing to work directly with insurers might seem like the straightforward option, partnering with brokers can provide invaluable expertise that should not be overlooked. They have deep market knowledge, access to a range of products from multiple carriers, and can customize insurance solutions to fit your specific needs. Plus, brokers handle compliance with various regulations, saving you time and resources.

Insurtech brokers like Indeez specialize in orchestrating large insurance programs for you, bringing new propositions to market, and understanding what works to expand, sustain, and grow customer value. Partnering with a broker means you gain a trusted advisor, freeing you to focus on your core business.

2. Making the Choice: In-House Technology vs. Embedded Insurance Solutions

Should you buy or build? Developing the necessary technology for embedded insurance internally can be expensive and time-consuming. Most of the traditional insurers offer tech solutions, but some of them lack the agility and user-friendliness of specialized insurtech platforms. Using established embedded insurance lets you integrate insurance products more efficiently and effectively, so you can concentrate on your main activities.

3. Amplifying Efficiency with a Single Global Partner

Choosing the right partner for a global insurance program is crucial for ensuring a consistently high quality customer experience across different regions. While some opt for multiple local insurers, this approach can sometimes result in fragmented experience due to local insurers having different processes and IT systems. By partnering with insurtech brokers, you gain a single, reliable point of contact who delivers unified solutions, ensuring a consistently exceptional customer experience across all global regions.

At Indeez, we work with both local and global risk carriers and know the best solutions out there. We can guide you to better outcomes for your business and customers.

Different Types of Embedded Insurance Offerings in Financial Services

There are different approaches financial services companies can take when integrating insurance into their offerings. There are three primary models to consider:

1. Built-in Cover

The cover is part of the value proposition of the product or service. Think purchase protection or gadget insurance as a feature of a premium account. This model is particularly effective for fostering customer engagement and loyalty. For instance, a bank or fintech offering purchase protection as part of its subscription service encourages frequent usage of its payment methods.

2. Point of Sale

Transactional embedded insurance works within a B2B2C setup, often popping up as an optional add-on or upgrade during your purchase. It’s a good way to enhance your main product or service. This approach is a game-changer for customer satisfaction, as it offers tailored insurance solutions right when you need them the most. For example, when booking a holiday online, you might be given the option to add travel insurance to your purchase.

3. Marketplace

Marketplace or standalone insurance products are independent of specific transactions or services. They are typically offered as separate policies that customers can purchase based on their individual needs. For example, an online marketplace might provide insurance options for electronic devices that users can choose from independently.

Each approach offers distinct advantages depending on the business’s goals and market positioning. While integrated embedded insurance builds deep customer engagement, transactional embedded insurance enhances revenue streams through strategic upselling. Marketplace insurance, on the other hand, can be more diverse for customer needs without being strictly related to the main product.

Choosing the right insurance model depends on factors like customer preferences, business strategy, and regulatory considerations. At Indeez, we specialize in helping businesses navigate these choices to maximize value and customer satisfaction.

Unlocking the Potential: Orchestrating Embedded Insurance

Embedded insurance is a powerful way to retain customers, drive engagement, and increase revenue. To succeed, you need a targeted strategy, relevant products, and a seamless claims experience, all aligned with your business goals and user needs.

Indeez simplifies this complex process. Our advanced tech platform manages everything from product integration to compliance, ensuring your offerings are always up-to-date and easy to manage. We handle the entire insurance lifecycle, freeing you from administrative burdens.

Our expert team ensures your solutions are innovative and effective, keeping you ahead of market trends and regulatory changes. Partner with Indeez to enhance customer loyalty and drive business growth.

Contact us to see how Indeez can support your embedded insurance needs.