With some of the biggest insurance companies coming from China and India, Asia-Pacific is the greatest marketplace for embedded insurance globally. A recent poll by Momentive.ai found that Indian banking clients were the most open to integrated insurance offerings, with ‘convenience’ as the primary motivator.
In order to give customers a hassle-free service and deliver insurance products that are suited to their needs, insurers are integrating technology into their business operations.
The additional layer of insurance offers improved client satisfaction and value-added services. This distribution strategy has boosted insurance while simultaneously offering an avenue for more insurance money.
Embedded insurance solutions are a crucial component of any company’s strategy for remaining competitive and offering customers a seamless, added-value, high-quality experience.
The following elements have contributed to embedded insurance’s good industry growth in India:
6 Important Embedded Insurance Factors:
1. Untapped markets being charged
Embedded insurance enables insurers to enter previously inaccessible new markets. However, with the help of several insurers, microfinance organizations may now access the underserved rural market by receiving life insurance, individual accident insurance, etc.
For insurers and stakeholders, embedded insurance is a potent tool for reaching neglected and rural populations in India’s undeveloped insurance markets.
2. Effortless onboarding
From the buying process, which necessitates completing lengthy application forms, all the time through all the claims process, which requires completing a number of methods in order to make a claim, insurance has long been viewed as a laborious process. The main goal of switching to embedded is to make things simpler.
3. Low expenses for acquiring new clients
An insurance business spends 20% or less of its revenue on customer acquisition. Additionally, the pre-pandemic study revealed that 43% of senior-level insurance industry decision-makers thought their current data sources were insufficient for possibilities and programs that would provide the most significant profit.
4. Enhanced Client Experience
Integrating insurance increases customer satisfaction is one of its most significant benefits. Insurance companies now can advertise their goods and services to people who need them.
Insurance firms who have previously operated outside the insurance industry have the opportunity to do so now and improve the business model for the client.
5. New product offerings
Using customer data previously unrecorded or, if gathered, not digitized in a paper-based healthcare offering, embedded insurance plans in India providers may create personalized, more pertinent, and best-priced insurance plans.
They may also alter the costs and aspects of these proposals and cancel them if they become unworkable.
6. Insurance Uptake in India
More insurance options are now available for cab rides, bicycles, cleaning services, COVID, pets, and other services. A few years ago, most were not even present in India. For as low as Rs 100 per year, life insurance, for instance, may be acquired using payment applications.
Although embedded insurance is still in its infancy, it has the potential to grow into a trillion-dollar industry.
It has advanced from straightforward warranty and gadget coverage marketplaces to more thorough vehicle insurance coverage. It is anticipated to extend into other business sectors provided data privacy problems are solved.
In order to provide more efficient products, insurers should study their markets and think about collaborating with insurance.