Boost Your Financial Services with Embedded Insurance

Integrating embedded insurance into your financial services can boost your value, engage more customers, and create new revenue streams. But navigating this complex landscape can be tricky. In this article, we’ll guide you through the key steps for successfully embedding insurance and show how Beloy can support you every step of the way.

What is embedded insurance?

Let’s start from the basics. Embedded insurance seamlessly integrates insurance coverage into the user experience of products or services, making it a natural part of how customers interact with these offerings. Banks and fintech companies can adopt embedded insurance as a digital solution, incorporating it effortlessly as an add-on or integral part of their service offerings.

Unlike the traditional way of buying insurance separately, embedded insurance places coverage into the products or services you’re buying, making the process seamless and convenient. This digital solution eliminates the extra step of shopping for insurance afterward, ensuring you have the option to be covered right from the start.

3 Key Tips for Successfully Embedding Insurance

1. Leveraging Brokers Effectively in Embedded Insurance

Although working directly with insurers might seem straightforward, partnering with brokers offers invaluable expertise. Brokers bring deep market knowledge, access to products from multiple carriers, and the ability to customize insurance solutions to fit your specific needs. They also handle compliance with various regulations, saving you time and resources.

Insurtech brokers like Beloy specialize in orchestrating large insurance programs, bringing new propositions to market, and understanding what works to expand, sustain, and grow customer value. Partnering with a broker means gaining a trusted advisor, freeing you to focus on your core business.

2. Making the Choice: In-House Technology vs. Embedded Insurance Solutions

Should you build or buy? Developing embedded insurance technology in-house can be expensive and time-consuming. Traditional insurers offer tech solutions but may lack the agility and user-friendliness of specialized insurtech platforms. Using established embedded insurance lets you integrate insurance products more efficiently and effectively, allowing you to focus on your main activities.

3. Amplifying Efficiency with a Single Global Partner

Choosing the right partner for a global insurance program is crucial for ensuring a consistently high-quality customer experience across regions. Multiple local insurers can lead to a fragmented experience due to different processes and IT systems. Partnering with insurtech brokers like Beloy gives you a single, reliable point of contact delivering unified solutions and a consistent customer experience worldwide.

Different Types of Embedded Insurance Offerings in Financial Services

Financial services companies can take different approaches when integrating insurance. Here are three primary models:

1. Built-in Cover

Coverage is part of the value proposition of the product or service—for example, purchase protection or gadget insurance included in a premium account. This fosters customer engagement and loyalty by encouraging frequent usage of payment methods or services.

2. Point of Sale

Transactional embedded insurance works in a B2B2C setup, often as an optional add-on during purchase. It enhances the main product or service by offering tailored insurance exactly when customers need it—for instance, adding travel insurance while booking a flight.

3. Marketplace

Marketplace insurance products are standalone policies offered independently of specific transactions. Customers purchase based on their individual needs, like insurance options for electronics available through an online marketplace.

Each approach has unique advantages depending on your business goals and market positioning. Integrated embedded insurance builds deep customer engagement, transactional embedded insurance drives revenue through upselling, and marketplace insurance offers diverse options to meet customer needs.

Choosing the right model depends on customer preferences, business strategy, and regulatory considerations. Beloy specializes in helping businesses navigate these choices to maximize value and satisfaction.

Unlocking the Potential: Orchestrating Embedded Insurance

Embedded insurance is a powerful tool to retain customers, increase engagement, and drive revenue. Success requires a targeted strategy, relevant products, and a seamless claims experience—all aligned with your business goals and user needs.

Beloy simplifies this complex process. Our advanced technology platform manages everything from product integration to compliance, ensuring your offerings are always up-to-date and easy to manage. We handle the entire insurance lifecycle, freeing you from administrative burdens.

Our expert team ensures your solutions stay innovative and effective, keeping you ahead of market trends and regulatory changes. Partner with Beloy to enhance customer loyalty and drive business growth.

Contact us to learn how Beloy can support your embedded insurance needs.