In a recent webinar hosted by Coronation Insurance Plc, technology and Insurtech experts explored the emerging concept of embedded insurance, discussing how businesses can leverage Insurtech to drive growth and unlock new opportunities. The panel featured industry leaders such as Elvis Chukwu (Chief Technology Officer, Konga Online Nigeria Ltd), Erika Krizsan (Managing Director, InTa Innovation Education), Nelson Madu (Chief Information Officer, Coronation Insurance Plc), and Opeoluwa Duntoye (Chief Operating Officer, Paddy Cover), who highlighted the transformative impact of innovation and technology on the insurance sector.
The panelists underscored how technology is revolutionizing the insurance industry by streamlining access to insurance products and tailoring solutions to individual needs. This technological advancement positions insurance as a strategic asset for businesses, helping them mitigate risks and foster growth. By integrating insurance offerings into digital platforms, companies can enhance customer service, streamline operations, and optimize risk management strategies, all of which contribute to a stronger business growth trajectory.
Embedded insurance is an innovative concept that incorporates insurance coverage directly into non-insurance-related goods and services. For example, Coronation Insurance has partnered with Konga Online Nigeria Ltd to offer phone insurance at the point of purchase. This seamless integration makes insurance a natural part of the buying process, providing a customer-focused and convenient experience. Consumers benefit from added protection for their purchases, while businesses can increase value and boost customer loyalty.
Common examples of embedded insurance include travel insurance provided with airline tickets and device insurance included with electronic purchases. This approach ensures that insurance is presented at the optimal moment, maximizing its relevance and appeal.
Embedded insurance offers several advantages, including:
Tailored Coverage: Leveraging data and analytics, insurers can create highly personalized policies that reflect the specific risks and needs of each customer, enhancing satisfaction and improving risk management.
Reduced Operational Costs: By integrating insurance into existing products or services, insurers can use current sales channels and customer relationships, leading to cost savings and operational efficiency.
E-commerce Protection: Embedded insurance can act as a safety net in e-commerce transactions, providing protection against disputes over damaged goods, incorrect items, or mismatched products. Policies like Coronation Insurance’s ‘goods in transit’ offer refunds, replacements, or repairs, thereby enhancing customer trust and strengthening the reputation of e-commerce platforms.
Embedded insurance can be categorized into three main types:
Product-based Insurance: Integrated with product purchases, offering additional protection such as warranty extensions for electronics or accidental damage coverage for appliances.
service-based Insurance: Embedded within service offerings, tailoring coverage to specific needs, such as travel insurance bundled with flights or rental car insurance included with booking
Technology is reshaping the insurance landscape, with APIs enabling seamless integration of insurance products into various platforms, and AI and machine learning driving personalization and risk assessment. These advancements are creating new opportunities for both businesses and customers, and Coronation Insurance is at the forefront of this transformation. Their commitment to exceptional customer experiences is demonstrated through their partnership with Konga, offering embedded insurance solutions on select products.
By embracing embedded insurance and leveraging Insurtech, businesses can not only enhance their offerings but also contribute to a more resilient and customer-focused insurance industry.
