THE EMBEDDED INSURANCE REPORT:
Data shows UK consumers are more compelled by contextual and convenient insurance & warranty offerings from their banks
This report is a part of a global series of research commissioned by Cover Genius to examine consumer preferences towards receiving embedded insurance offers directly from their financial institution of choice.
In this report, titled The Embedded Insurance Survey: United Kingdom, 527 census-balanced bank customers in the UK were surveyed by Momentive.ai (the research business of SurveyMonkey) on how they would react to receiving insurance offers based on real time transaction data. They were asked the following:
The results overwhelmingly found that British consumers have a strong desire for bank-embedded insurance offers, an effective use of technology that connects transactions to protection. The desire for convenience has been witnessed by digital companies that already embed insurance, with growth in insurance attach rates of up to 290% since the start of the pandemic. The growing demand for embedded insurance also presents a challenge that “bancassurance” partnerships between traditional banks and insurers — where offers are divorced from underlying activities — cannot solve: 71% of British digital bank customers would be highly interested in receiving embedded insurance offers based on their transaction data, as would 64% of traditional bank customers. ‘Convenience’ is the primary driver for their interest, stated by 49%.
The research aligns with data across the globe that points to significant demand for timely and relevant transaction-based insurance offers, with the majority of consumers showing extremely high preferences if they’ve recently made big purchases or had major life events especially. Notably the data shows that the traditional ‘second step’ of insurance distribution is outdated and not aligned with the expectations of an increasingly digitized customer base. 80% of Britons who chose a traditional insurer or broker in the last 12 months would prefer bank-embedded offers for next time.