Duuo by Co-operators Embedded Insurance Report

A research report on Canadian consumer trends and preferences in insurance.

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What’s the buzz about embedded insurance?

When we say “embedded insurance” we’re referring to any situation where an insurance purchase journey is seamlessly placed (embedded) into a partner’s app, platform, or website.

For example, the last time you purchased plane tickets you were almost certainly offered travel insurance just before the digital checkout. In this case, the airline has embedded an insurance offering directly into their journey, precisely at their customer’s moment of need.

But, why is it trending today?

In short, because the technology has finally caught up to the vision. Now that customers can simply select an insurance package and “add to cart” with their plane tickets, it’s a game-changer for all parties involved:

It fulfils a job the customer wants done (safety and protection while travelling)
It expands the overall value prop of the airline. Increasing customer loyalty and generating insurance referral revenue in the process.
It opens a new distribution channel filled with high-intent customers for the insurance partner.

For these reasons and more, non-insurance brands in Canada are now rushing into the embedded insurance space.

Report Methodology

While the average Canadian has probably never heard the term “embedded insurance”, there are driving indicators we can focus on to determine if the embedded insurance value proposition appeals to them.

With this in mind, Duuo by Co-operators surveyed over 1200 Canadians (ages 21-65) to gauge interest.

Here’s who responded:

75% car owners
52% homeowners
39% tenants

Here’s what we learned

Canadians want more control over their insurance rates

Canadians want to be rewarded more for their brand loyalty

Canadians need to trust a brand before buying insurance

Canadians are open to purchasing insurance through embedded experiences

A few key metrics

95% of Canadians would be more likely to stay loyal to a brand if they received additional rewards and services.
81% of Canadians would be willing to try a new insurance brand to gain more control over the cost of their coverage.
85% of Canadians would be more likely to make additional purchases from brands that reward them with loyalty points.
67% of Canadians would prefer to purchase auto and home insurance the same way they get insurance for their flight tickets.