Why It's The Right Time for Digital Brands to Offer Insurance
Updated: Apr 30
Empowering brands through the insurance value chain
Consumer behaviour is constantly changing and there has never been a more powerful example than the effect of Covid-19. New financial pressures, unpredictable employment status and less global movement has resulted in a boom of on-demand, subscription based insurance and the launch of niche insurance products. It's in the face of disaster when the need for precaution is heightened and a new reality for how insurers choose to evolve the meaning of digital transformation in insurance.
Insurers and brands who have large communities such as retailers, banks, utility, telecoms, sport and expat communities have a silent weapon against competition and that is the day-to-day insights into how customers are behaving with their brand. Rather than passively taking in advice customers want proactive interaction and dynamic pricing to the services they receive. Brands have an opportunity to leverage their network and use digital transformation to apply it to every stage of the insurance value chain; and Habit Analytics is the platform which enables this end-to-end digital insurance solution.
Insurance should be sold contextually and brands are already well placed to understand unique customer needs and can influence this to offer either a hybrid solution for a more comprehensive service offering or niche insurance products relevant to the customer.
Here are some use cases of cross-selling insurance contextually on your website/app:
Mobile or digital hardware retailer - Mobile or Home Contents insurance
Outdoor store - Connected bike theft Insurance
Art or collectables store - High Net Worth insurance
Pet store or veterinarian stores - Pet insurance
Grocery/ pharmacy stores - Health insurance
Car dealer - Car insurance
Elder care - Long Term care insurance
Gyms - Health insurance
Jewellers - Valuables insurance
Banks naturally do this very well. For example, when buying a house it’s convenient to take out home insurance with the bank who is lending. Insurance is then offered at the right time, with advice, guidance and on check out. With the right product there exists the perfect platform for distribution, the chance to cross-sell, bringing additional revenue and enhanced customer loyalty, a ‘compliment’ to the current offer which customers will appreciate. Responsibility of brands is distribution only and Habit as the full end-to-end insurance digital solution takes care of technology. Insurers may handle claims and customer management. It’s almost the ‘best of both worlds’ - revenues without the work.
No customer acquisition efforts would be required, the channel is already ‘nurtured’ and customers are predisposed to buy, brands will sell insurance in context for a better conversion rate. Having an expensive watch insured at the point of sale ensures the authentication documentations are perfectly in line with insurers requirements therefore, easy for the insurer to risk accordingly. Traditionally where the price of insurance is the main differentiator, now selling in context will re-pivot the appeal of insurance, resulting in an increase to the bottom line of the premium. If there is a reduction, lower risk means loss ratios are compensated. Such as selling health insurance through a gym and using data of attended gym classes to influence the price.
Brands have the power to re-pivot the benefit of insurance towards loyalty and rewards through contextual selling.
Creating meaningful loyalty programs within brand ecosystems
Hyper personalised needs can be met by creating meaningful reward programs within brand ecosystems. Clubcard members can benefit from a range of points, coupons or discounts to encourage repeat purchases and result in stronger brand connection. Insights from purchase behaviour can be the start in defining the reward, like buying pet food can trigger a push notification for highlighting the benefits of pet insurance and alas a reward of double card points if insurance is bought. Selling insurance adds another dimension to the brand ecosystem; Habits technology allows for growing a network of services such as plumbing, cleaners, veterinarians, clinics and motor garages to compliment segments creating further value added benefits.
Gamification and business rule engine
More than ever touch points are shifting to mobile channels and rising consumer behaviour towards proactively setting personal goals and challenging themselves for healthier living and control over how insurance is shaped for them. Habits unique platform allows customers to add device data from wearables, other apps or tracking devices to be used to positively influence scoring points and take customised insurance products to a new meaning. Gamification is defined through Habits business rule engine where brands can even cross-connect data from multiple data sources and digitally influence every stage of the insurance value chain.
Fast deployment with Habit Analytics
Collaboration with Habits end-to-end digital insurance platform means every step of the insurance value chain is digitally transformed;
Habit will match the brand with the insurer by either plugging in an existing product or work with the insurer to build/underwrite a unique insurance product.
Embed insurance natively into your app or use a customisable white label app where all technical resources are offloaded.
Connects with any authentication system allowing for easy credentialing and fast onboarding integrating much of the existing data.
A customer can get a quote, buy a policy, manage policy or add coverages, submit claims and access assistance through the use of chatbots, telemedicine and video consultations.
The technology to create policy flexibility, ‘on-demand’ and dynamic pricing
Provide a full insurance CRM management portal
The key ingredient which sets Habit apart from any other platform in the market is the expertise to integrate even the simplest data from a smartphone or IoT device and apply sophisticated business rule logic to interact in real time with the customer. Digital and Fast to launch are in Habits DNA. Adapting to price sensitivities with mileage based car insurance or on-demand means data has never been more important in redefining how insurance is delivered.
Contact us at habit.io/contactus and find out more about boosting your business and brand loyalty with an insurance product.
We look forward hearing from you!
- The Habit team