As excitement sweeps the insurance industry about the potential of embedded insurance, does tying up insurance with other products risk obscurity?
In a digital world, consumers demand for a more seamless journey when purchasing a product. This is where embedded insurance comes in, it’s the ability to buy travel insurance as you pay for your flights or opting for extended protections when you buy a phone. But, what risks does this pose and how can it be tackled?
Embedded insurance makes the consumers’ journey more simple when purchasing protection, but, it also risks increasing regulatory complexity, increases the chances of fraudulent sales practices and poor understanding of consumer behaviours in digital environments.
In an Insurance Post news analysis, Tim Quayle, managing director of OneAdvent agrees that embedded insurance is an exciting opportunity but it relies on transparency and product simplicity to work.
“Embedded covers need to made up of simple, easy to understand products, which are communicated in a way that works for modern consumers. This is why simple parametric covers lend themselves to this type of distribution.”
Tim also highlights the important benefits of utilising data in order to provide more relevant and personal insurance products.
Read Tim’s comments in full and find out how best to harness the world of embedded insurance here.
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