It’s wild to me that we’ve officially entered 2024, and ringing in this new year has only made it more apparent that consumers are expecting more all-in-one experiences from their preferred platforms. As CES comes to a close, the automotive industry is stepping up its game with cutting-edge connected vehicle features that offer customers new functionality.
As a result of this rising expectation, more companies have been dipping their toes into embedded technology to provide their customers with services they need, like insurance, right at the point of sale.
What you might not know is that embedded insurance is far from a new concept. You see, the 1980s carried more trends than just shoulder pads and neon clothes. It was also a time when insurance products began being offered in partnership with banks across Europe. As for North America, it’s likely that partnerships between airlines and travel insurers became a thing well before bancassurance did across the pond.
So if it’s been around for so long, you might be wondering why embedded insurance is only now becoming such a popular topic for companies in Canada that previously played no role in the insurance market.
Here’s what I think:
- Arguably just within the last year alone, the digitization of embedded technology has become so seamless that Canadian consumers now consider embedded insurance to be a convenient value-add vs. an annoying upsell at the cash register.
- In addition to expanding the value proposition offered to their clients, embedded insurance has created new opportunities for partnerships and revenue growth within the Canadian economy.
In other words, companies are finally catching up to that idea from the 1980s, putting trusted, non-insurance brands in a position to grow and prosper by aligning with an insurance partner.
Let’s dive into how they’re approaching it:
Leveraging brand trust to enhance the customer experience
Think back to the first time you needed a plumber or the last time you chose a restaurant in a new city. What’s the first thing you did? Nine times out of ten, you probably asked a friend, or a family member, or searched for reviews online.
If there’s one thing that hasn’t changed in the digital age, it’s the mindset of a consumer. Making purchase decisions and selecting brands typically comes after you’ve confirmed other people have had a good experience with them. Otherwise, you might be left with disappointment that the new rug you were excited about is actually much smaller than you were expecting (been there).
When customers trust your brand, naturally, they trust that you wouldn’t recommend other services that don’t meet the same standards you set for your customers. Pairing that trust in your brand and the insurance brand you partner with is, in my opinion, a match made in heaven.
Providing extra value to your customers with resources you know and trust works to remove the obstacle of finding the right ones on their own. It’s not that they’re not capable of finding the right resources, you just happened to have the amenities they needed before they even realized it, and that alone can be one of your most significant differentiators.
Giving your customers this added value isn’t as difficult as it may sound when you have the right embedded insurance partner to make it happen. The right partner ensures you not only have the proper technology to provide that simple customer experience but also ensures that your customers have coverage they can trust in the same way they trust you.
But the question here is, how do you know when you’ve found the right partner?
Not to leave you hanging, but you’ll have to stay tuned for my thoughts on that in my next post.