In a recently held webinar by Coronation Insurance Plc, technology and Insurtech experts delved into a revolutionary topic of embedded insurance, discussing how businesses can leverage Insurtech to drive business growth and create new opportunities.
The panel comprising of Elvis Chukwu (Chief Technology Officer, Konga Online Nigeria Ltd), Erika Krizsan (Managing Director, InTa Innovation Education), Nelson Madu (Chief Information Officer, Coronation Insurance Plc), Opeoluwa Duntoye (Chief Operating Officer), Paddy Cover, highlighted how innovation and technology are changing the insurance industry, fostering business growth, and improving customer experience.
The panelists emphasized the transformative power of technology in revolutionizing the insurance industry. By streamlining access and tailoring solutions, technology has positioned insurance as a strategic asset for businesses seeking to mitigate risks and drive growth.
By integrating insurance into digital platforms, companies have improved customer service, streamlined operations, and optimized risk management strategies. This strategic movement is expected to support business growth trajectory.
Understanding Embedded Insurance
The innovative idea of embedded insurance incorporates insurance coverage into goods and services that are not insurance related. For instance, Coronation Insurance has partnered with Konga Online Nigeria Ltd to offer phone insurance to mobile phone buyers, directly at the point of purchase. This seamless approach makes insurance a natural part of the purchasing process, providing a pleasant and customer-focused experience.
This novel strategy is a win-win for both consumers and businesses: consumers get protection for their purchase, and providers can offer more value and boost customer loyalty. Two common examples of embedded insurance are travel insurance provided in conjunction with an airline and device insurance included with the purchase of electronic devices.
Benefits of Embedded Insurance
Embedded insurance is designed to complement existing products or services without disrupting the buyer’s journey. This seamless integration ensures that insurance is presented at the optimal moment, maximizing its relevance and appeal. Other benefits include:
• Tailored coverage based on individual needs and behaviour. By leveraging data and analytics, insurers can create highly personalized policies that accurately reflect the specific risks and needs of each customer. This not only enhances customer satisfaction but also enables more efficient risk management.
• Embedded insurance also reduces operational costs and streamlines distribution. By integrating insurance into existing products or services, insurers can leverage existing sales channels and customer relationships, eliminating the need for separate distribution networks. This can lead to significant cost savings and improved operational efficiency.
Solving the problem of “what I ordered vs what I got” in an e-commerce setting
While convenient, e-commerce transactions can sometimes lead to disputes between customers and sellers. Common issues include damaged goods, incorrect items, or products that do not match the description.
In this instance, embedded insurance can act as a safety net, providing protection and resolution for these disputes. Policies such as Coronation Insurance’s ‘goods in transit’ can offer refunds, replacements, or repairs, ensuring that customers are happy. This not only enhances customer trust but also strengthens the reputation of the e-commerce platform or any business with a checkout platform, from online retailers to service providers.
Types of Embedded Insurance
Embedded insurance can be categorized into three main types:
1. Product-based Insurance: This type of cover is seamlessly integrated with the purchase of a product, offering additional protection and value. Examples include warranty extensions for electronics and accidental damage coverage for appliances.
2. Service-based insurance: This is embedded within a service offering, tailoring coverage to specific needs. Examples include Coronation Travel Insurance bundled with flights and rental car insurance included with bookings.
The Role of Technology in Embedded Insurance
Technology is reshaping the future of insurance. APIs are facilitating seamless integration of insurance offerings into various platforms, while AI and machine learning are driving personalization and risk assessment. These technological advancements are revolutionizing how insurance is offered and consumed, creating new opportunities for both businesses and customers; and Coronation Insurance is at the forefront of this transformation.
Our commitment to exceptional customer experiences has led us to partner with Konga to offer embedded insurance solutions on select products.
We have developed cutting-edge technology to support this endeavor. Any online business can benefit from our innovative insurance solution, enhancing the value they offer to their customers. To leverage our Insuretech product, all you need is an API. Your API (Application Programming Interface) will act as a bridge between our product and your online platform.
How does Coronation Insurance Leverage Data and Technology?
To enhance our embedded insurance products, we have utilized data and technology to achieve:
Data-Driven Personalization: By analyzing customer data, Coronation Insurance tailors embedded insurance offerings to specific needs and preferences.
Real-time Risk Assessment: Using advanced analytics and machine learning, we assess risks in real-time, enabling dynamic pricing and coverage adjustments.
Seamless Integration: APIs and support technologies allow for the smooth integration of embedded insurance into partner platforms, providing a seamless customer experience.
Fraud Detection: Leveraging data analytics, we can help identify potential fraud patterns, protecting both the business owner and the customer.
Automated Claims Processing: Our Insurance Claims Portal streamlines the claims process, reducing turnaround times and improving customer satisfaction.
Enhanced Customer Experience: Our digital platform and mobile app provide customers with convenient access to their insurance policies, claims information, and personalized recommendations.
Use Cases of Technology in Embedded Insurance
E-commerce platforms like Konga are increasingly leveraging embedded insurance to enhance their offerings. By offering product insurance and extended warranties at the checkout, these platforms provide customers with added protection and peace of mind.
On our part, we have deployed technology to enhance insurance uptake: our underwriting process offers instant quotes for all products. This empowers customers to quickly assess their options, make informed decisions, and purchase coverage instantly. Once a purchase is complete, a certificate is immediately issued, confirming their protection.
Best Practices
At Coronation, we understand the importance of informed decision-making when it comes to insurance uptake. That is why we are committed to providing accessible and valuable resources to educate businesses of all sizes about insurance needs, options, and the process of obtaining coverage. Through our dedicated platforms, coronation.ng and conversations coronation, you will gain more insight.
Remain Innovative
To integrate embedded insurance into your products and stay ahead of the curve, contact us on:
Phone: 02-012774500, 02-012774566
Email: [email protected]
Website: coronation.ng
