The Future of Distribution: Embedded Insurance
In a recent presentation at INCO Greece, our SVP Regional Head of LatAm partnerships, Julio Castellón shares the future of insurance distribution and leveraging customer data points. Over the past two decades, the development of the internet and the deployment of fast internet networks has reached millions of people all over the world. The internet along with the pandemic has accelerated the rapid growth of e-commerce and customers have grown accustomed to sites they find convenient, trust and enjoy using.
The traditional way insurance was purchased was to directly sell policies to customers as a second step. According to Castellón, the pandemic has shown that people need to use what’s available to them in terms of technology to interact with companies they find trustworthy and use often. He also highlighted how the pandemic brought to the forefront the need to purchase protection products not only from a health perspective.
From a recent survey conducted, studies show 70% of digital customers, and 44% of traditional bank users are highly interested in receiving embedded insurance offers. Customers are predisposition to purchasing a particular product from a website they trust and offering insurance through large online retailers, travel booking agents or online marketplace, as part of the purchase flow is convenient for the customer and increases ancillary revenue for the e-commerce site.
Castellón points to the importance of leveraging data in the digital world. Technology companies collect data through Machine Learning and data science to better understand customers and provide the right type of insurance, at the right time and price; something that traditional insurers are unable to do. This data ensures that the product that is offered is relevant to their purchase and it also allows for the creation of new policies that are customized to provide the right type of coverage for the customer.
Key Video Highlights:
0:00 Intro to Julio and Cover Genius
2:50 The impact Covid-19 pandemic has had on many areas
3:57 Insurance the new way
5:35 Customer Data points
8:10 Customers seek protection products
8:58 Leveraging data
9:52 Embedding enables responsive insurance
11:11 insurance product development
11:59 Global Insurance Network