Anyone in business knows that the right partnership can make a huge difference. It isn’t just investment cash and expertise, sometimes insurance partnerships are about streamlining admin, utilising data betetr, cross-selling products between two brands and more. In the end, it’s all about business growth and it has to be a two way street. So let’s take a look at how insurtechs and brokers can make the most of partnerships.
EMBEDDED COVER IS PURE PARTNERSHIP
One of the predicted growth areas this year is embedded insurance. As more people essentially rent a lifestyle, rather than buy assets, the opportunity is there to offer insurance cover as part of the service. It could ridesharing an electric car, buying new white goods, renting a lodge for a family holiday, or a taking out package of healthcare cover for your family, but all those services can come with embedded insurance cover. Much of it can be fine tuned to suit different demographics too.
Mark Huxley, Non-Exec Director at Altus sees the lessons being learned in the lease car market having a wider impact as brands run with the embedded cover concept;
“There is one word that will define the insurance sector in 2022; “embedded”. With a hyperfocused eye to the needs of customers and as next-generation insurance providers evolve and expand, so we are seeing the real power of the insurance sector being redefined by how it can work within other sectors, organisations and brands.
Take motor insurance for instance. OEMs are increasingly looking to align with the insurance sector to create specifically defined solutions. Some of these include Tesla with their telemetry/behaviour-based policies for their drivers and Wrisk, working with manufacturers such as BMW/Mini building brand aligned solutions matching the owner demographics.
The benefits are clear; a genuine understanding of the end customer and a policy that then meets each exacting need. But this is just the start, as organisations with a small leap of imagination can see that there is no end to embedded partnership opportunities. “
EXTENDING YOUR REACH
One more key benefit of partnerships is that your insurance brand can `punch above its weight’ as they say in sports commentary. Guy Letheren co-founder of Fincred offered these insights;
“Partnerships have formed an invaluable part of our business for many years. We have a varied array of partnerships, ranging from introducing partner, trade association partners and global network partners. The partnerships we have formed have provided insight into markets that would otherwise be unavailable to us.
These insights have empowered us and allow us to effectively expand our knowledge to allow us access to clients in previously unfamiliar market sectors. Our partnerships have also given us knowledge of global markets and extended our reach to countries that would be outside of our jurisdiction.”
If you want to build new products then you really cannot do it with forging partnerships, since so much of the process is based on data; from pricing risk, niche marketing, distribution, claims, legal etc.
Rich Tomlinson at Percayso-Inform offered these thoughts;
“One area we are looking at in 2022 is micro fleets, plus the whole at-home SME business. There’s that blurring of lines between home and commercial use on property, cyber risk for remote staff or teams. We are delving deeper into the data that underpins these new trends and you can only develop the right product if you understand the client’s business structure, then build the eco-system that underpins the cover.”
THE HOLISTIC APPROACH
Gemma Jarrett, Network Director at Stubben Edge sees the real value in partnership as being one where you can get a holistic overview of your business. For example, getting expertise on compliance, plus rapid site build on new products, can empower brokers when it comes to winning new clients. Offering niche market knowledge is a big plus point too;
“The perfect partnership between a broker or AR and their client is based on offering exactly the right insurance for a specific business niche. But how can you truly understand every client’s individual business? This is where partnership with Stubben Edge can really help, because we are dealing with things like legal, compliance, T&Cs, policy wording etc. every day. So you, and your client, can get get on with the exciting stuff of launching a brand new product or service.”
Gemma adds; “It’s well known that SMEs are often under-insured, partly because they don’t have time to read through all the wording and figure out if that means they’re covered for every eventuality. Having a partner like us in your corner means that you can provide exactly the right cover.
We also take a holistic approach, so we are always watching the latest trends in a particular niche, or fast growing sector. Being able to fine tune insurance for your clients’ future needs is a powerful selling point for any broker.”
Assessing how two business can pool resources so that both benefit is the key. Sometimes both parties will have a deeper expertise in one area, other partnerships are about geographical reach. For fast growing brokers or insurtechs, it’s important not to let your brand become subsumed within a larger entity. What made you innovative and different can sometimes be lost, because ultimately any partnership has to be a blending of skills, people and brand reputation in the marketplace.