Your Money: Why embedded insurance works
By Shanai Ghosh
The heightened awareness of risk has led to greater recognition of the need for insurance. It has prompted individuals and businesses to re-evaluate their insurance needs and seek comprehensive coverage that addresses specific risks.
Embedded insurance involves seamlessly integrating insurance offerings into the purchase of other products and services. One example of embedded insurance is phone purchases coupled with anti-theft insurance, where the coverage for potential theft is built into the purchase itself. Likewise, the purchase of flight tickets often comes with the option of adding travel insurance, offering protection against flight cancellations, delays, or lost luggage. In such cases, embedded insurance is a potential solution. It simplifies the customer experience, reduces friction in the insurance buying process, and provides a more personalised and tailored insurance solution at the point of purchase. In most cases, coverage can be bought at the touch of a button. This seamless integration makes it easier for customers to obtain insurance protection.
Embedded insurance is increasingly becoming popular with millennials and Gen Z, who seek quick, simple, and digital access to solutions. The fact that coverage is made available at the point of sale, be it online or offline, for a premium, benefits insurance companies as well.
Customised insurance
It gives customers the option of opting for a customised insurance product that matches their product or service purchases, however small they are, without having to look around for the best insurance deals. It also enables businesses to enhance their products or services by adding insurance protection, thus increasing customer loyalty and generating
