Embedded Insurance – A Game Changer for Online Retailers
Meitav Harpaz, co-founder and CEO of Patternexplains how Embedded Insurance is transforming the online shopping experience for customers and retailers alike.
It is not new information that the coronavirus pandemic has fundamentally changed consumer behavior. The pandemic acted as a catalyst, accelerating technological advances and creating new ways for businesses to engage with their customers. Now, after more than two years of upheaval, we know for sure that:
- All consumers, including those who were previously skeptical, have felt more comfortable shopping online
- Ecommerce platforms like Shopify and others allow any business to set up an online store quickly and easily
- Consumers want relevant offers to be presented to them where they shop
- There is more consumer resistance to generic ad tech offerings
- Consumers expect a higher level of service, security and flexibility from the companies they buy from.
Consumers want to know they can change, return or cancel their orders before making a purchase. The challenge for many businesses is convincing customers that they are in control and giving them peace of mind to complete their purchases. This is where embedded insurance comes into play.
The embedded insurance model allows insurance products to meet consumers when and where it makes the most sense for them, providing highly personalized protection relevant to their needs. It transforms the traditional insurance model, moving from a third-party (insurer) sales model to a first-party (consumer) buying model from a third-party (company) that provides the insurance coverage. The implications for businesses and consumers are huge, as this example shows:
A family uses an online travel agency to research where to go on vacation this year. It’s been two years since they managed to escape, so they plan to go to a beach resort in the Maldives. However, they will not click ‘book’ until they are confident that there is little to no risk to their travel plans. Before the pandemic, they might have worried about good weather or hoped their luggage wouldn’t get lost. Now they’re more concerned about health insurance, real-time alerts on local infection rates and the flexibility to cancel without having to spend any money should something go wrong. Embedding these insurance coverages into the buying process gives the family peace of mind that they are in control and allows them to add the protection they want and push them through the purchase line. It’s a win-win situation for customers and dealers alike.
Embedding insurance builds consumer confidence
It’s the retailers who sell the goods who really understand their customers and their buying behavior. By monitoring the customer journey, they get a complete picture of the products in demand, conversion rates, and any concerns. But every consumer has a different perception of risk. Embedding insurance into the online buying process creates security, alleviates customer concerns and builds their trust in the company. Through the use of AI and machine learning, additional value-added protections can be tailored to the needs of each individual. This in turn creates a seamless shopping experience as the customer has already entered the relevant details and is presented with a range of covers tailored to them in real time.
Incorporating embedded insurance into the service or product offering provides today’s customers with the kind of digital, streamlined experience they not only prefer, but expect. Personalization and convenience can help further increase customer retention and loyalty: protection policies can be purchased as a subscription service or set to auto-renew to ensure customers keep coming back. Embedding insurance is a surefire way to give customers confidence, encourage them to re-order products and services, and help retailers navigate what are undoubtedly turbulent times.
https://techround.co.uk/news/meitav-harpaz-pattern-embedded-insurance-game-changer-for-online-retailers/?utm_source=rss&utm_medium=rss&utm_campaign=meitav-harpaz-pattern-embedded-insurance-game-changer-for-online-retailers Embedded Insurance – A Game Changer for Online Retailers