Insurance Industry Blog

Insuretech. These days you’re seeing a lot more of this portmanteau – a fancy way of saying a made-up word, created by combining two other words. In fact, if you searched the term insuretech just six years ago, you’d hardly get any hits. In 2022, you’ll get about 3 million.

Having choices is a good thing. That is, unless you don’t really understand the differences between options A, B and C. Then it’s tempting to simply put off making the choice. If you’ve decided to offer your users an embedded insurance plan, are you now a bit stuck wondering which one is right for them? And also right for your platform?

For tech platforms, the choice between building an embedded insurance program in-house and working with an embedded insurance platform can be a difficult one. On the surface, developing your own program and building it yourself feels like a natural fit. What better way to create exactly what you want for your users than to build it yourself? But, even if you have a clear vision of what an ideal program for your customers would look like, the complexity of the product and program design in a heavily regulated industry changes the scope of the project. Making the prospect of building the offer internally less appealing for most tech platforms.

“Nothing in insurance is attractive.” That’s according to Shefi Ben-Hutta, Co-Founder of the Coverager podcast. True, but what about embedded insurance?

So, you’ve decided to launch an embedded insurance program. Great idea! With the right program, you can increase confidence in your offering, improve conversion rates and even create a profit center for your business.

Building and growing a tech platform is challenging - offering a custom insurance product to your users is even more daunting. 

Understanding the role that insurance and protection products play for tech companies looking to enhance user experience and increase confidence is becoming more and more critical. 

Tech platforms today face mounting challenges. Chief among them is how to make sure customers have a great experience and feel confident when trying to purchase services - even when it isn’t realistic to speak with a rep from the company. The most innovative tech platforms realized years ago that offering a custom insurance product at the point of checkout increased customer confidence and had positive impacts on the bottom line. This is especially true for marketplaces that offer vacation rental services, asset-sharing apps, and online shippers. 

Today, sharing economy marketplaces miss out on opportunities to improve their risk management performance because they focus too much on user-level verifications, by just running background checks for example. While this is an important part of the equation, the total risk of a transaction is also related to entities such as the asset, the location, the context of the transaction, communications, etc. Therefore, a world-class risk assessment should go beyond just verifying users.