Swiss Re on embedded insurance

Some good insights here from Sebastien Bert, co-head of strategic partnerships for the Americas at Swiss Re about embedded insurance:

> “Think about everything that’s changed in the last 10 years of how we buy product and services. There’s the digitization of the purchase, the customer journey, companies like Amazon, that have changed how we shop and buy...Customers are looking for bundled products and more personalization, and that applies to all services, so insurance is not excluded from that. And if you think about the pandemic, that accelerated that trend.”

> One challenge for insurers as embedded insurance expands into different product lines is around building the right partnerships. “It’s a different type of partnership,” he said. “You’re working with a company that may or may have not ever had experience in the insurance industry.” The key to approaching these partnerships is thinking long term and considering any operational challenges that may arise. “You’re dealing with infrastructure that is non-insurance facing,” he said. “You want that customer journey to be seamless … and the navigation from the non-insurance side to the insurance side to be a smooth flow.”

One of the interesting challenges for traditional insurers is that the number of companies with good customer reach and relevant customer journeys will be limited. The large brands will be very precious about the customer experience - from sales all the way through to claims. That is really no different from many intermediated partnerships today. However, digital and data do provide great opportunities to take these embedded insurance offerings to new levels and through channels perhaps never really effectively accessed before.

Source: Insurance Journal