Embedded insurance is shifting the outdated and rigid model of how insurance is typically sold from an ad hoc standalone product into a more seamless, flexible and native approach. With the ongoing rise in digital touchpoints and transactions we are seeing a huge opportunity for neobanks, ecommerce and service providers to tap into the traditional €360 bn. GWP European bancassurance model where banks offer insurance products to customers via a physical branch in combination with advice and agents. Now, by selling insurance natively integrated in the product or service a customer is buying, embedded insurance models have revolutionised insurance distribution.
IThe Evolution of Insurance Distribution
The advantage Non-insurance companies have
Non-insurance companies have an opportunity to use data driven insights from their customers buying behaviour to scale their business without the need for additional marketing. Simply by tapping into their existing client base and selling insurance that compliments the product they are buying will lead to high conversions and low price sensitivity. Insurance should be offered to solve customer problems as people want a sense of security afterall. Take for example, the familiar combination of online flight and travel insurance, the perfect checkout experience while the sale of other forms of insurance have generally been stuck in the last century.
Habit can enable brands to take advantage of this new digital era and go beyond display ads and traditional advertising by tapping into insurance as an add-on to their products.
How Habit helps brands go beyond display ads and traditional advertising with insurance.
In advertising, display ads are limited by clicks so you can not gauge the real value it brought to your customer, however, a purchase of insurance shows that your customer saw real value in what you are selling as they want cover for what they are buying. With Habit you can access the right insurance product for your customer and the technology will enable insurance to be embedded into your site natively. The insurer will take care of the risk, customer support and handle claims. Commissions are then earnt on each policy sold for the brand who distributes. There are also renewals on the policies so the lifetime value of your customer is longer than just the first year. In pet insurance for example, it can be bought throughout the lifetime of the pet 10-15 years.
How can insurance products be integrated natively?
Once identified as the perfect insurance complimentary product, the customer journey to insurance is up to you - insurance can be presented on checkout, after sign up or as a new menu with no interruption of existing experience. All can co-exist within a website, mobile app, instore purchase product or bundled within a loyalty reward package. By embedding insurance on your subscription chances for conversion are much higher. Using existing data to pre-populate answers will also speed up the quotation process and make for a seamless insurance purchase experience.
Habit technology allows for brands to work with designing a niche or off-the shelf insurance product which can also be co-branded. Habit technology enables insurance flexibility for on-demand and a fully digital insurance operation.
There are several ways to integrate insurance fast and natively, offering seamless and convenience to the buyer;
Webview
This offers an overview of coverage information and packages that allow a customer to fully gauge the benefits and features of an insurance product. A click-out to a Habit-powered webpage which is in keeping with the native look and feel of your website.
RESTful APIs
Embed our API to offer a seamless insurance purchase to your customers. In a new menu or on checkout, make insurance buying a pleasant and quick experience. Digital banks like Revolut currently execute this very well.
Whitelabel Mobile App
For ecosystems which choose to have a standalone fully digital mobile app providing an all-in-one place for insurance services: our white-label mobile app is ready for you!
‘’58 percent of consumers would be more likely to buy retail products or spend more with merchants if insurance was offered at the point of sale. That research shows a strong preference for buying insurance from specific retailers, indicating a way for those merchants to not only increase sales, but strengthen ties with customers.’’(Source)
With an opportunity for e-commerce, neobanks and other digital brands to take advantage of their digital interactions to provide tailored insurance products there is much room for disrupting the traditional €360 bn. GWP European bancassurance model.
Speak with us to enable insurance sales on your website or mobile app and start getting extra revenue right away.