Simplify the consumer experience
Traditional life insurance tends to be complex and time-consuming, leading many potential consumers to delay or altogether avoid purchasing life insurance policies. Embedded insurance, on the other hand, helps simplify the entire process by making it easily accessible.
By eliminating the need for separate applications and extensive paperwork, embedded insurance helps significantly reduce barriers to entry, encouraging more people to obtain coverage.
There’s been progress toward improving the consumer experience. However, there’s still an opportunity to improve – especially as more consumers are attracted to the convenience and ease of buying online. This year, for the first time, LIMRA’s 2023 Insurance Barometer Study found consumers would prefer to purchase life insurance online versus via in-person meetings1. One way to help meet this desire effectively is by moving from integrated experiences toward fully embedded experiences.
| Integrated experiences | Embedded experiences |
| One level of connectivity and experience | Deeper experience based on consumer-centric approach |
| One-way exchange of data and information | Two-way exchange of data and information |
| End user completes experience through multiple user interface (UI) transitions | Seamless end user experience completed in one UI |
| User experience happens where the company wants it to | User experience happens where the consumer is |
We live in a world of consumers who demand “Amazonification;” taking too long is not an option. Most insurance carriers are losing business due to abandonment.
Enhanced personalisation
In the past, life insurance policies were often one-size-fits-all, lacking the flexibility to cater to individual needs. With embedded insurance, life insurance companies can offer personalized coverage that better aligns with the unique circumstances of each consumer.
This level of personalisation not only helps improve consumer satisfaction but may also help life insurance companies better manage their portfolios and reduce risk.
Cross-selling opportunities
For life insurance companies desiring to better reach younger demographics such as Millennials and Gen Z, it’s important to consider they may tend to favor seamless digital experiences. Embedded insurance caters to this preference by offering coverage options during their everyday experiences within digital platforms, apps and other online services.
Think of it as digital bundling, enabling partners from virtually any industry to offer insurance policies as an add-on or feature.
