Angus McDonald talks embedded protection at Insurtech Insights Americas 2022
Consumers should be at the center of all the decisions a business makes when it comes to embedded protection. Cover Genius CEO and co-founder Angus McDonald explained why while speaking at Insurtech Insights Americas on the keynote panel, “How Embedded Insurance Will Disrupt the Industry Landscape”. He discussed where the demand for embedded protection is coming from, and how to ensure consumers’ needs are being met and why businesses should care, with other leaders in the insurtech and insurance spaces.
The push for embedded protection comes not from the tech sector, but from consumers themselves who want convenience when it comes to attaching insurance to their purchases. In fact, in a PYMNTS survey commissioned by Cover Genius, “convenience” was chosen as the top reason for choosing embedded insurance offers. Businesses should leverage data and contextual information to offer insurance products that are fit-for-purpose in the path of purchase.
“You’ve got to start at the solution, and go back to the insurance product,” Angus said.
Angus elaborated, explaining that creating embedded protection should start with the consumer’s experience. Insurers should not and cannot just build a product, assuming they know what their customers need, and distribute it through embedded protection. Companies should understand what will add value for their customers, and work with the right partners to build products that will enhance their experience. Embedded protection is also not just about the sale, Angus noted, using Cover Genius’ partnership with Wayfair as an example. Embedding the claims experience within the solution is what brings customers back to the company’s platform, driving repeat use. Not only does an effective claims experience increase customer satisfaction, it can actually generate utility for businesses as well.
The panel ended with a question about managing licensing requirements, with Angus emphasizing the importance of choosing an insurtech partner that comes to the table with a strong legal and compliance background. A partner like Cover Genius, which is licensed or authorized in all 50 US states and over 60 countries, can help distributors become licensed themselves and build the right regulatory frameworks in-house, so they are 100% covered.
0:50 In your opinion, what is your definition of embedded insurance?
4:09 Why can’t companies do it themselves? Why do we need the insurtechs?
6:35 Who’s driving this? Is it the consumer, the insurer, or the insured?
12:32 In your opinion, is embedded insurance infringing on a consumers’ personal choice, or enhancing it?
15:50 Does embedded insurance provide trust and build a relationship with consumers, and how important is that?
20:35 How is data being captured and used to build embedded products?
24:10 How do you manage the licensing requirements for clients who have an embedded solution?
25:40 What will happen to the customer relationship and the insurer when a company owns the whole transaction? How do they protect their brand?