Embedded Insurance: 5 Strategy Questions You're Not Asking But Should Be

Embedded insurance has become an increasingly popular method for distributing insurance products, offering a significant opportunity for startups and established companies alike. As this model gains traction, it's important for teams to carefully consider their approach before launching.

This article outlines five key questions to guide the development of an embedded insurance strategy, ensuring it is well-suited to meet customer needs and business goals.

1. How does your customer think about protection in the context of their transaction?

Understanding your customer's perspective on protection at the point of transaction is crucial. This insight will help tailor your insurance product to address their specific needs and concerns, making the option to add insurance more appealing and relevant.

2. What is the customer’s mindset during the moment of purchase?

Consider the customer's state of mind during the purchase process. Recognizing whether they are likely to be receptive to insurance offers can influence how and when you present these options, potentially increasing uptake.

3. Have you designed your product specifically for the context and consumer?

Your insurance product should be designed with the specific context of the purchase and the consumer in mind. Customization can enhance the perceived value of the insurance, encouraging more customers to opt in.

4. Can you rethink the timeline of engagement and insurance purchase?

Adjusting the timing of when insurance is offered in the customer journey can lead to higher engagement. Finding the right moment to introduce insurance options can make the purchase decision easier for customers.

5. How do you inject a human element into the experience?

Even in digital transactions, the human element is important. Consider ways to make the insurance offering feel more personal and less like an automated add-on. This could improve customer satisfaction and perception of the insurance product.

As you craft your embedded insurance strategy, honing in on these five key factors will not only drive innovation but also guarantee that your products cater to the distinct needs and desires of each customer. By delving into the intricacies of individual behaviors and preferences, your embedded insurance solutions can truly elevate transactions, enriching the customer journey.

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