Embedded insurance is a rapidly growing tech trend taking the insurance industry by storm. To put it simply, embedded insurance is a way for companies to offer insurance products and offerings to their customers within their existing purchase flow. For instance, when you purchase an airline ticket and get offered trip protection—that’s embedded insurance.
While this form of selling insurance and insurance bundling is not a new concept, advances in technology have made embedded insurance more accessible than ever before. Auto and mortgage lenders, for example, can leverage embedded insurance to attract insurance partners or diversify their loan offerings to include insurance, create a seamless borrower experience, and expand their market share.
Embedded insurance is a long-standing practice in the insurance industry, allowing companies to bring the convenience of purchasing insurance to their customers. Popularized by Allstate in the 1920s, it has continued to be instrumental in helping businesses reach more customers and provide a better customer experience by adding convenience and marketability. While the way it was used in decades past may not have been a tech-first approach, the use of embedded insurance today has only evolved using technology to become more accessible for consumer-focused businesses.
Today, according to Coverager, companies in retail, banking, fintech, airline, lending, and more want to embed digital insurance add-ons to their own product and service offerings. Companies like Paypal, Intuit, and Chime have partnered with insurance companies to do just that. With embedded insurance, companies can help their customers access and buy insurance coverage that suits their needs. For home and auto lenders, this opportunity opens the door for more customers to seamlessly add comprehensive insurance coverage, leverage bundled discounts, and more, as part of their loan process, helping to speed up underwriting and convert more borrowers.
So what can embedded insurance do for home and auto lenders? For an auto loan or mortgage loan to close, the borrower must secure the appropriate insurance (auto or homeowners). As a required component of underwriting and loan closing, lenders can leverage embedded insurance to sell coverage directly within their own platforms or websites, creating a comprehensive and seamless borrower experience. The benefits of using embedded insurance are significant.
By using embedded insurance, lenders can expect to:
All these factors make embedded insurance an attractive option for lenders who want to stay ahead of the competition in today's rapidly changing digital landscape.
Consumer-permissioned data (CPD) is the ability for consumers to share their data directly from their online accounts. With the right CPD platform, this instant delivery of data such as insurance policy or declarations page eliminates outdated processes like paper documentation, back-and-forth phone calls, faxes, and more.
Using consumer-permissioned data is a simple, cost-efficient way to fast-track embedded insurance by enabling lenders to quickly access a borrower’s current policy so that they may push a comparative and competitive insurance product.. The digitization that CPD supports is a significant part of enabling insurance add-ons, comparisons, and more. For auto and home lenders who want to benefit from distributing insurance to their customers via embedded insurance, the clear next step is finding a platform that can work with their native processes to collect the necessary consumer data.
MeasureOne’s consumer-permissioned data platform does just that, presenting instant data collection in limited steps from within any digital channel: on a website, in a digital application, and via email or text.
When you partner with MeasureOne, auto and home lenders also gain:
MeasureOne brings secure, transparent data to the table for the benefit of lenders and their consumers.