Thursday, December 9, 2021

Embedded Insurance Products – A Brave New World For Brokers?

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Find out more: Discover the full range of innovative solutions available by Genesis here

There is a lot of noise around the concept, as Andre Sims (pictured), co-CEO of insurance software provider Genesis, points out, because, after investing in B2B technology providers, many of them have created the technology needed to create embedded insurance, not specifically by design but As a by-product of technology they have made for big careers. The same technology can be used for brokers, opening up a new distribution channel that allows them to do business in a much more efficient way.

Read more: What is the call for Genesis co-CEO for the UK insurance industry?

“They realize they have this technology so they’re making a fuss about it,” he said. “That conversation was blockchain, then it was big data, then it was ecosystem but now it’s embedded insurance. And that’s entirely because people didn’t realize they could do it so economically. For example, with a Genesis platform, I pre-configured our pre00 We can embed any one of the products in any website in one minute.

Such effectiveness for insurance brokers has never been heard of before, and on a practical level, embedded insurance means that they can leverage their strong market relationships to create mutually beneficial new distribution channels. For example, Sims said, a broker who works with a local SME who sells motorcycles. If the broker has a strong and mutually trusting relationship with that SME, they can place their insurance offer directly on the business website and open a whole new audience for their services.

It’s basically free delivery because it’s so affordable now, Sims says, but in the past, the integration process was complicated enough. Tra Historically, if you have a quote and binding system on someone’s website, you will have the same product on your main platform and you will link each data input field – name, address, etc. to each other. To prevent mis-selling due to product changes, one platform has been closely synchronized to ensure that other changes are reflected.

Read more: Insurance software giant Genesis has named joint CEOs

“It made it very difficult to maintain more than a handful of channels at the same time,” he said. “So, Genesis took an internal approach to it. Since we own the product configuration on the platform, instead of copying products on someone else’s platform and taking on the challenge of constantly synchronizing them, we’ve found a clever way to embed the original system directly and verbatim in others’ journeys.

“Take, for example, a motor product that is being embedded among 15 distribution partners and the scheme is theirs because our client is the custodian of the product. So, if they want to add an additional question, for example, we add it once, click ‘place’ and Instantly 15 of those other distribution partners dynamically start displaying those new questions.Our clients need no extra work from the front end website or their partners.

This has significantly reduced the barriers to entry for brokers, he said, as they are now able to distribute through additional partners. Genesis uses widget technology to deliver this embedded solution and it simply moves the data input fields out of line. The widget created by Genesis carries special tokens that track metrics such as drop-off rates, where customers are coming to the platform, and where referrals come from. This allows brokers to automatically release commissions or referrals to their partners, he said, so it’s incredibly powerful that it takes effort out of the equation.

“Of course, it’s based entirely on the brokers’ relationship with the partners who put this functionality on their website, ”he said. “And one of the biggest challenges for insurance right now is gaining the trust of e-commerce platforms or other platforms to include insurance. If you look at the average e-commerce platform, their NPS score is around 80%, but insurance usually sits below 30%.

“So, as an entrepreneur, am I going to risk my brand that I’ve spent my whole life building because a bad claim experience my client could get because they were insured by them [an affiliate partner]? Probably not. Is it worth risking the loss of the brand with a nominal fee? No … So, the insurance industry as a whole needs to improve its perception, its NPS score and customer satisfaction because the closer it gets to the e-commerce platform, the more they will take their brand in terms of risky business. On our reputation. ”

Sims is probably one of the biggest challenges to the continued success of embedded insurance. And while the solution to this challenge may seem inconsistent coming from a tech firm, he said the answer is that companies need to make sure they’re not just using technology for technology.

In an earlier interview with the insurance business, Sims highlighted that Genesis’ unique price offer is the intention to move Dial around insurance. He noted that this is only possible when the technology is used to improve the policyholders’ experience and their relationship with insurance and is not used for their own benefit. Therefore, Genesis is looking for the right solution with the insurance business that will improve the insurers’ relationship with their insurance services.

And the good news for the insurance business, he said, is that they get a chance to test whether embedded insurance is right for them and their clients because Genesis solutions don’t require a substantial investment of resources. Where once the idea of ​​accepting a traditional themed product and embedding it seamlessly across multiple platforms was a multi-million pound effort, Genesis has created a business case to try such solutions because they are so affordable.

“So companies can take a swing at it and if they miss it, that’s fine,” he said. “The whole idea with innovation is that you fail quickly, so you can get back. You just want to make that failure as delicious as possible. “So, we just want to give people the tools they need to swing and miss because no one misses the ball. Swinging is like falling into cold water at a carnival.”

Discover the full range of Genesis insurance technology solutions Here

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