Discover how embedded insurance (EI) offers customised options beyond basic coverage, enhancing cost efficiency and improving the customer experience.
Technological advancements and changing customer expectations are driving the growth of tailored insurance products. Based on one of our NEOINSURANCE® core beliefs, we advocate for simplified and customisable insurance offerings distributed through embedded value chains.
Transitioning from standalone to embedded products
The insurance industry is undergoing a shift towards digital and data-driven sales approaches, moving away from traditional channels. This evolution calls for products that align with new distribution models. Embedded products are gaining popularity alongside standalone offerings.
Standalone and embedded products differ in competition and ecosystem integration. Standalone insurance operates through visible online channels, while fully embedded insurance seamlessly integrates into primary consumer products or services, remaining invisible to customers.
Must-have features and capabilities of embedded insurance products
To find success in the EI market, we have identified seven essential features of EI products:
- Simplicity: A lean product structure ensures instant time to market and compatibility with agile software development.
- True embedment: Encompasses several key aspects, including one-click insurability, flexibility to insure as you go, integration with partners’ journeys, and implicit consent for data usage.
- Lifestyle orientation: By offering coverage options that align with customers' lifestyles, EI products become more relevant and valuable, facilitating their embedding into primary consumer goods or services.
- Core product proximity: Collaboration with trusted partners in complementary market segments aligned with the insurers' core business allows successful and rapid scaling.
- Modularity: Modular product structures are essential to serve distribution partners quickly and respond to customers’ individual lifestyle needs flexibly.
- Ease of configuration: This enables insurers to be more agile, flexible, and cost-effective.
- Reusability: Creating reusable products that can be deployed across multiple geographies and distribution partners ensures scalability in the international market.
The seven key features of EI products not only contribute to their market success, but also have a positive impact on other domains of an insurer’s operations, such as marketing and sales, underwriting, and claims management.
Ultimately, evaluating an EI product against the must-have product features and strategically defining the EI product portfolio are important for ensuring business success. The higher the fulfilment of these features, the greater the forecasted success probability.
How we can help
Synpulse is your strategic EI partner. We offer consulting and technology services to insurance companies worldwide, including the EI Product and Pricing Model® with reusable templates and configuration techniques for product development. We also provide assets that complement our holistic and practice-proven EI offerings, such as the EI Target Operating Model (TOM)®, EI Capability Model®, and EI Architecture Blueprints® among others.
Reach out to us to learn how we can support your EI market proposition.
