Source: KPMG

While offering insurance represents an incremental stream of revenue for customer-facing platforms, the real value-add for them is in deepening relationships, extending the customer experience, and generating more data to serve the customer better on the next transaction. Cross-platform data sharing and customer geo-location data helps insurers strengthen product offerings and allows both partners to own a broader slice of the customer journey.

In other words, embedded insurance is much more than inserting products into the retail chain. Insurers that integrate into customer platforms gain access to new touchpoints and inflows of data from those sources. Insurers at embedded stages 2.0 and 3.0 make the core experience better for the partner and its customers by harnessing and leveraging that data. Customer geo-location data, for instance, helps deliver tailored insurance offerings at the right time – just prior to boarding a flight, for instance. That enhances the customer’s experience of the partner platform and the insurance product combined and extends and deepens those relationships over time.

Insurers with richer data also gain a competitive edge. They’re able to design customized and personalized products specifically for customers on the other end of the transaction. Data is also essential to managing risk, as additional data helps improve the underwriting process.

Read full article: https://kpmg.com/ca/en/home/insights/2024/04/accelerating-shift-to-embedded-insurance.html