How Retailers are Embedding New Revenue Streams: The Insurance Revolution Continues in 2024

The remarkable surge in embedded insurance is taking centre stage for 2024, with major retailers and supermarkets leading the charge to offer more relevant products to their customers and diversify their own revenue streams.

Source: The European Financial Review By Louw Hopley

But there are challenges and pitfalls along the way – so what are the tech architecture advancements driving this transformative shift, and how can non-insurance brands ensure they are best positioned to optimise innovative new digital distribution channels?

The attraction of embedded insurance lies in its ability to cater to evolving consumer preferences. Speed, simplicity, product transparency and the association with trusted brands are key drivers for its adoption. This digital bundling approach allows partners across diverse industries to seamlessly integrate insurance policies into their offerings. Whether it’s travel and entertainment or retail, healthcare, and property, the integration is facilitated by APIs, providing smooth communication between software applications.

Research underscores the growing acceptance of embedded insurance, with 45% of UK consumers comfortable with purchasing insurance policies from non-insurance companies during significant transactions. Similarly, 71% of digital bank customers have expressed interest in embedded insurance offers, with more than three-fifths of traditional bank customers also open to such purchases, driven primarily by convenience.

Supermarket giants have embraced the insurance trend in areas such as life and pet insurance, consistently reporting growth in their insurance channels over the past year, and we are seeing demand and interest from these large retailers to explore further embedded channels to deepen their insurance value proposition.

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