Have you heard the term embedded insurance yet?
As the world continuously evolves at a rapid pace, the realm of transactions becomes increasingly more efficient. Think about how far touchless transactions have come in just one year! QR Codes, Apple Pay, Google Wallet, Venmo, just to name a few.
Ever wonder why insurance isn’t more ‘touchless’ or simply included in the purchase of your significant assets? (It is called embedded insurance, by the way.)
The most straightforward example we can think of embedded insurance is, “Do you have phone insurance from your cell phone provider or Apple Care?”. When you got the phone insurance plan, did you have to shop around with different agents? Did you compare their coverage options with multiple companies? Did you then, with a certificate of insurance in your hand; did you head back to your cell phone provider and furnish that document to prove you insured it?
The answer is obviously no.
The insurance was already ’embedded’ into the sale of the product. Serial numbers, ownership info, etc., were all transferred automatically to the insurance carrier for your sale.
Embedded Insurance is defined as adding insurance functionality into the transaction technology of a sale. A third-party provider seamlessly integrates creative insurance solutions into their client’s propositions, deals, or experiences. They can be complementary add-ons or as separate components.
Now, why aren’t options like this available for major asset purchases?
They will be soon!
With API calls becoming more and more compatible, consumers are experiencing a more streamlined path to checkout.
[(API) is a computing interface that defines interactions between multiple software applications or mixed hardware-software intermediaries. It defines the kinds of requests that can be made, how to make them, the data formats that should be used, the conventions to follow, etc.]
Before soon when we get the keys for our new vehicle, the insurance data will already be ported over for us. With a quick signature, that is all that will be needed in order for any new car or new homeowner to get the best value in the insurance marketplace.