Recently, financial services have embraced the most advanced technologies – data science, artificial intelligence, and real-time communication practices. These three technologies have completely transformed all facets of financial services, including insurance.
Gone are the days when buying insurance was a chore for customers, and selling insurance would be an important task for insurers. Today, with the latest technologies, such as integrated insurance, buying and selling insurance has become a snap.
Integrated insurance: transforming the world
Built-in insurance is coverage or protection built into the purchase of the product or service. Third party vendors or developers merge the apt insurance product with the service or product that a customer purchases. Hence, providing a better value proposition to their customers. In addition, customers tend to look to the seller, which promotes customer loyalty. This is the basic example of how integrated insurance benefits both ends of the spectrum.
Built-in insurance can be incorporated into almost any purchase of any product or service, large or small, such as the purchase of a car or carpooling. The travel insurance recommendations that you find when booking a vacation are also a built-in form of insurance.
Here’s how it benefits both clients and insurers.
Benefits of integrated insurance for clients and insurers
It is hassle free
There were times when customers shied away from purchasing insurance, due to tedious paperwork. Insurers would wait for customers to buy their products. But with built-in insurance, customers get insurance with the purchase of the product or service, bypassing the long process of getting insurance separately.
With built-in insurance, insurers easily get their buyers, while clients easily get the coverage they want without tedious paperwork.
Buyers get coverage on their purchases
Every expensive purchase, from a gadget to a luxury vacation, requires insurance coverage. But more often than not, customers would probably avoid it because of the complicated process involved.
With an insurance product merged with their purchase, customers get insurance coverage quickly and easily.
Insurers can easily reach their potential customers
It’s about hitting the iron when it’s hot. Built-in insurance allows insurers to be in the right place, exactly when a potential customer needs it. It can be accredited to modern technologies like artificial intelligence and real-time assessment.
With these modern technologies, insurers can understand the need for their products and tap into the right audience base. Knowing who wants what and when also improves their reach.
Customers get a personalized product
The integrated insurance model is all about the personalization of insurance. Over the years, insurance companies have sold standard policies to everyone. However, these policies had shortcomings and would not be in line with the specific needs of each buyer. This would make buyers skeptical. In addition, purchasing an insurance policy would fall heavily on their pockets.
With built-in insurance, customers get exactly what they want. Buyers get the maximum benefit and value from the insurance product because it is tailor-made for them. In addition, it is very affordable.
It strengthens growth
This insurance model thrives in the B2B2C environment. Insurers who understand the requirements of manufacturers and customers have a better opportunity for growth.
By offering protection with every purchase, manufacturers improve their purchase rate, because customers no longer worry about losing. In addition, understanding all aspects of the supply chain, the precise requirements of their customers, and the changing financial and economic environment allow insurers to shape their offering.
Overall, integrated insurance promotes profitable operations.
The bottom line
The integrated insurance model has given a new definition to insurance. It transforms the B2B2C environment. With its flexibility, ease and tailor-made coverage, it is changing the way clients and insurers have always viewed insurance.
This article does not necessarily reflect the views of the editors or management of EconoTimes.