The New World of Embedded Insurance
Picture this:
you're a retailer, you’ve got a great store, great products and a great team, but a nagging worry remains – although you have control over your customers' experience and the condition of your products prior to purchase, what if something goes wrong after?
ENTER: BOLT COVER.
Partnering with an insurance tech firm that offers embedded insurance solutions can revolutionise your approach to customer care and generate additional revenue.
“The new world is “embedded Insurance”—the blending of insurance into non-insurance products or services.” (BCG)
Wait. Hold up. What even is ‘Embedded Insurance’ though?
It’s generally considered to be where customers can seamlessly add-on a complimentary insurance product when they’re making a purchase.
It’s centred around the idea that insurance should be bought, not sold - acquiring insurance protection becomes a part of the overall journey rather than a completely separate activity.
This concept has existed since the 70’s when banks began to bundle insurance with some of their subscription bank accounts.
With the evolution of technology and e-commerce, embedded insurance now allows customers to purchase a variety of insurance alongside ‘digital’ products, such as protecting a package that you’re sending, or adding travel insurance when buying a holiday.
60% of customers would buy insurance or warranties from their favourite brands if it were offered at checkout, a groundbreaking finding from the Embedded Insurance Report (conducted by PYMNTS and commissioned by Cover Genius).
Many InsurTechs operate on a B2B2C basis, where they collaborate with insurance companies and customer facing businesses, to integrate their offering to customers at point of purchase. This allows insurance companies to increase their channels of distribution, access data to underwrite accurately and swiftly, and therefore reach more customers. Retailers typically receive commission for introducing the customer to the insurance.
However, with the rise of direct-to-customer digital platforms, many InsurTechs are now shifting toward a B4B2C approach - helping retailers and manufacturers be embedded into the underwriting process. Leveraging customer and purchase data, and sharing their knowledge and insights, allows the InsurTech to offer better products, prices and services to the customer. It also allows insurance companies to better understand the risk they are taking.
This shift allows insurers to have more direct interactions with customers, streamline processes, and seamlessly offer tailored cover and services. It also empowers customers with greater choice and accessibility in purchasing insurance products.
In summary:
Bolt Cover is here to help retailers and manufacturers of repairable consumer products open up a new revenue stream and enhance their customers' experience.
That means that once you partner with us, you will get paid each time a customer purchases or renews their product protection insurance.
And your customers will no longer have to worry about how they will protect the items they love/value/cherish - because you will offer premium product protection insurance at the point of sale - online and/or in-store. Giving your customers the peace of mind they’re looking for.
