Maximizing revenue growth with embedded insurance

Embedded insurance is tapping into the wider embedded finance trend and all for good reason. Promising to meet customer needs and demands, embedded insurance is a direct integration of insurance offerings with consumer products that offer seamless transactions and enhanced convenience.

Source: Finextra by Marat Nevretdinov, Managing Director at HDI Embedded

Projected to grow more than six times larger by 2030 to $722BN in GWP, embedded insurance is greatly revolutionising the insurance industry.

We’ve all had contact with embedded insurance in our day-to-day lives. One common example being when booking a train ticket and being offered insurance options at the point of sale. However, the use cases go beyond this and today’s market offers a great opportunity for businesses to meet customers where they are, regardless of the industry or sector. Businesses can grow their profit margins greatly with embedded insurance offerings – it’s just the case of adopting the right business model that allows flexible growth opportunities.

What’s the embedded insurance selling point?

With embedded insurance, businesses can integrate insurance offerings into their infrastructure, products, and online services via third-party platforms and APIs. Business owners – whether bank, retailer, or online marketplace – can improve their customer value proposition and scale up their businesses with ease.

In today’s saturated market, characterised by savvy consumers with increasing demands, customer satisfaction has never been more essential. Embedded insurance provides companies with the opportunity to enhance customer engagement with personalised solutions. The result is a sustained and expanded customer base which translates into new revenue streams for its proponents.

Developing the right embedded insurance model 

The most effective business strategy for sustained growth is a flexible, digital-first model. One that allows businesses to continuously adapt to evolving customer preferences, optimise processes, and leverage data insights, ensuring long-term success in an ever-changing market landscape. By keeping the customer as the focal point, businesses can offer competitive solutions that their client base both demands and needs, in turn helping to grow their revenues.

With embedded insurance, everyone wins

Embedded insurance is revolutionising the industry for good reason. It benefits insurers due to its greater efficiency, coverage and reduced costs, features which may not have been accessible under older policies. For non-insurers, it means additional revenue and customer engagement opportunities.

Overall, the emergence of embedded insurance introduces a novel model to effectively distribute insurance services and revolutionise the way insurers and their customers interact. Naturally, it’s a win-win for all parties.

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