Case study: Successful strategies for implementing embedded insurance in motor insurance
Embedded insurance provides motor insurers with numerous advantages such as improved customer experience, increased customer
Embedded insurance provides motor insurers with numerous advantages such as improved customer experience, increased customer
Embedded insurance is a type of insurance that is integrated into a product or service and offered to customers as an added value. It is different from traditional insurance products where customers must sign up for the coverage separately. Embedded insurance can be used to offer customized coverage to customers depending on their needs.
The advantages of embedded insurance for motor insurers are numerous. Firstly, it can improve customer experience by providing customers with tailored coverage options that meet their needs. Additionally, it can increase customer loyalty by offering customers additional value and convenience. Finally, it can help insurers reduce costs as they are able to offer discounts on premiums for customers who opt for embedded insurance products.
Here are a few examples of embedded insurance in the motor insurance sector:
Volvo Cars: Volvo offers a factory-installed embedded insurance solution for its vehicles. This solution, known as "Volvo Car Insurance," provides a comprehensive coverage package to drivers and automatically renews each year, unless the policyholder decides to cancel.
Mercedes-Benz Financial Services: Mercedes-Benz Financial Services offers an embedded insurance solution for its vehicles that includes theft protection and collision damage coverage. The policy is built into the monthly finance or lease payment for the vehicle and is automatically renewed each year.
GM Financial: GM Financial offers an embedded insurance solution for its vehicles called "Total Loss Protection." This coverage protects policyholders from the financial burden of a total loss, including theft or collision damage. The coverage is automatically included in the monthly finance or lease payment for the vehicle.
Toyota Financial Services: Toyota Financial Services offers an embedded insurance solution for its vehicles that includes gap coverage and mechanical breakdown protection. The coverage is automatically included in the monthly finance or lease payment for the vehicle and can be customized to meet the policyholder's specific needs.
BMW Financial Services: BMW Financial Services offers an embedded insurance solution for its vehicles that includes theft protection and collision damage coverage. The coverage is automatically included in the monthly finance or lease payment for the vehicle and can be customized to meet the policyholder's specific needs.
Nissan Motor Acceptance Corporation: Nissan Motor Acceptance Corporation offers an embedded insurance solution for its vehicles that includes gap coverage and mechanical breakdown protection. The coverage is automatically included in the monthly finance or lease payment for the vehicle and can be customized to meet the policyholder's specific needs.
These are a few examples of how embedded insurance can be implemented in the motor insurance sector. By offering insurance coverage that is built into the vehicle purchase or lease, insurance companies can make it easier for policyholders to access comprehensive coverage, without having to shop around for a separate policy.
Adopting these key strategies can result in a successful implementation of embedded insurance in the motor insurance sector, providing policyholders with an improved and valuable insurance experience. Insurance companies can leverage the advancements in AI, ML, and real-time risk underwriting to efficiently offer a more effective embedded insurance experience to policyholders in the motor insurance industry.
Embedded insurance provides motor insurers with numerous advantages such as improved customer experience, increased customer loyalty, and cost savings. The case studies above demonstrate how successful companies have used embedded insurance products to increase customer satisfaction and loyalty while ensuring cost savings for their businesses. Reach out to us at Inaza to see how you can launch your own embedded insurance products.