Manuel Heuer

Manuel Heuer

Chief Operating Officer

How Embedded Insurance Can Expand Your Reach

In the post-pandemic era, where technology developments are ever-changing, many consumers search for a more personalized experience when considering products or services to buy. Yet many insurers still have their main focus on giving competitive quotes when a customer calls to get coverage or having agents create a customer base to offer them relevant insurance.

However, those approaches have significant challenges. For example, you have to spend a considerable sum of money to entice consumers to call for a quote, or your sales agent has to overcome objections to make a sale. As a result, it takes a lot of resources to get conversions.

What if you could meet the customer when they not only needed insurance but wanted it, right then? You could dramatically increase the amount of insurance you sell and improve your bottom line. That’s what embedded insurance allows you to do.

What is embedded insurance, and how can insurers take advantage of it? Let’s take a look.

Partnering for Embedded Insurance

Embedded insurance allows other companies to partner with your company to offer your services at the point of sale.

Embedded has existed for a long time now, as Accenture notes. For example, when you could purchase an insurance policy at the airport before flying, a car insurance at a rental car, or an extended warranty when buying appliances.

However, nowadays, and due to the demands of today’s society, the most obvious partnership for health insurance companies is working with employers to provide coverage for their staff, but you can also think outside the box.

For example, you might partner with a fitness tracking company that connects its customers with specific insurance offers that you have available. When customers are made aware of your relevant insurance products exactly when they need them, they are much more likely to buy. You can also tap into new markets that wouldn’t necessarily reach out to an insurer directly.

Customers buying fitness trackers are likely to be a good risk for your health insurance programs because they’ve shown an interest in tracking and improving their health. However, you could narrow that down even further by partnering with a brand known for its sport-focused customers.

These fitness enthusiasts might not be shopping for insurance at that moment but being introduced to a low-cost option when they are already thinking about their health could be a great opportunity. Utilizing Digital Health helps users of fitness trackers stay healthy and maintain their lifestyle changes over time, while making them good customers for insurers as they are less risky.

The Benefits of Expanding Your Reach

As an insurer, you have already maximized the value of your existing audience. Partnering with others allows you to expand your reach to potential customers exactly when they are ready to hear about an add-on that would improve their lives.

This strategy has many benefits. First, it allows insurers to tap into new markets and grow their customer base in a different and more useful way than before. Second, it helps to build new relationships with other companies in the health care industry, which can lead to greater collaboration and efficiency. Finally, it can help to reduce costs by spreading the risk of insuring new customers across multiple partners.

How do you know if these customers are ideal for your insurance coverage? You can use digital tools to do quick risk analysis with the information provided to you. For example, our Risk Engine allows you to assess risk with as little as four pieces of information.

How Agents Fit Inside This New Model

With these many changes happening, it is reasonable to ask where the figure of the agent stands. Is it outdated?

According to Accenture, although most people are comfortable checking prices and making comparisons online, 85% of consumers prefer to interact with a human when asking for advice on products and offering. It is because of this, that agents still play a very important role in the insurance world, as they help customers understand their risk profile and what is the most suitable coverage for them.

Grow Your Customer Base Today

Insurance companies have a unique opportunity to grow their influence by partnering with other businesses that can help access an ideal audience in a way that hasn’t been done before. By using embedded insurance, you can access more markets at exactly the time they’re interested in your offers.

Once you have those customers, our Risk Engine allows you to assess them quickly, and using a Digital Health Engagement Platform (DHEP) can help you keep them focused on maintaining good health, while creating a better relationship with your insureds based on trust.

To learn more about our risk assessment system and health engagement platform and how they could benefit your business, contact us today!

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