Do consumers want insurance at the point of sale? A new survey says yes, more details here;
A recent census-balanced survey of 3,551 US consumers from PYMNTS.com, commissioned by Cover Genius, sought to understand how financial institutions customers would react to embedded insurance offers — tailored insurance offerings based on transaction data. The findings show that 70% of digital bank customers would be highly interested in receiving embedded insurance offers based on their transaction data, as would 44% of traditional bank customers. In addition, of those who purchased insurance in the last 12 months, 56% are highly interested in transaction-based offers.
The report also shows that convenience is the primary driver for customers’ interest in transaction-based embedded insurance offers, stated by 49%.
“The accelerated digitization we have seen in the past 15 months has enabled digital brands – more than ever before – to use real-time data to offer an array of products and services at the point of sale or sign-up, and these are topped by embedded insurance,” said Angus McDonald, CEO and Co-founder of Cover Genius. “Due to their level of trust among consumers, financial institutions, especially banks and neobanks, are uniquely positioned to bridge coverage gaps and add value to important purchases their customers make through hyper-relevant, data-backed insurance offers.”
The study examined 13 types of life events or activities that lead to insurance consideration, such as childbirth, purchases of car, property, pets and expensive items, contracting for a wage and becoming a lessee or landlord, and revealed that consumers who recently made major purchases or experienced life-changing events are, in many cases, more than two times more interested in corresponding bank-embedded offers than those who have not.
Findings show that customers who used traditional providers in response to a major life event or purchase in the last 12 months are highly interested in transaction-based offers, with a strong interest in property insurance such as homeowners (37.4%), renters (29.1%), and landlords insurance, (54.8%), and travel (76%), health (59.7%) and life insurance (59.8%).
While recent experience purchasing insurance is one way to identify early adopters, another is demography. Two thirds of all Millennial, Bridge Millennial and Gen Z respondents indicated high levels of interest, however the level of interest drops by one third for Gen X and a half for Baby Boomers.
“The data shows that traditional providers — insurance carriers and brokers — are not meeting demand for coverage across the wide-ranging categories that customers report a strong desire for,” McDonald adds. “It’s not surprising that in the last year, the world’s largest technology companies have announced plans or launched embedded insurance offerings across a range of industries. The clamor for seamless servicing has meant we’ve added partners like Shopee and eBay in retail, several airlines and online travel agents, auto, gig economy and mobility companies like Ola, Intuit and other fintechs and more.”
The full report, “Embedded Insurance – Leveraging Transaction Data To Expand Coverage In A Digital-First Market” is available for download: HERE.