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Have you heard a lot about “embedded insurance” and have some questions about what it is, where to start, and how to shape a digital strategy around it? At DIGIN 2023, Nationwide’s Rebecca Nichol, Associate Vice President, Strategic Partnerships and Brian Disbrow, Associate Vice President, Tech Enterprise Partnerships, will have the answers you’re looking for in their session, “Unleashing the Power of Incorporated Insurance.” They talked with Digital insuranceGrace Crane to preview their talk.
Digital Insurance: You plan to wade into the opportunities as well as challenges surrounding embedded insurance. But let’s start with a definition. Can you tell me how you explain “embedded insurance” as a concept?
Rebecca Nicholl, NationwideWhen an insurance company merges its customer journey with another company’s journey – it takes two paths to buy customers and creates a new path to provide insurance and protection solutions. It could be in a company adjacent to the industry; For example, we provide insurance in the context of a consumer purchasing a product that is not insurance, such as buying his car or taking out a mortgage. It really provides the customer with a smoother and more convenient experience of getting their insurance. So we try to meet customers where they do other business to give them access to insurance products.
Revolutionizing any of these situations — what Nationwide would call your significant moment, when you have an accident, when you buy a car, there are certain times when a combined ride will not only create a smoother experience with the company like Nationwide or a partner, but it really has an opportunity To greatly improve that customer’s experience, to the point where it can be incredibly different.
Digital insurance: How do digital solutions and technology enable embedded insurance, and how do they work?
Brian Disbrow: If you think about a core capability that’s really needed for companies to offer built-in, it’s clearly understanding how digital technologies like APIs come together to expose this value chain in new and innovative ways, Rebecca said. The way Nationwide thinks about it, APIs are the underlying technology that supports embedded insurance. One of my roles here is running our own API platform – we call it our Partner Platform.
Other things really needed to go to the market [include] White label products and a really strong compensation strategy. You [need to] Understanding what business strategy will be around to deliver protection products, depending on the needs of the partner. We are a highly regulated industry. If you don’t have a clear and strong compensation strategy or really, you’re hindering your ability to have multiple solutions that you can go to market with.
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Digital insurance: What are the benefits of offering built-in insurance products — specifically, what is your goal in the types of services that you provide with these products with the included insurance?
dispro: I think the first value is the customer journey. We create innovative new experiences that create ways you can seamlessly integrate neighboring National Insurance protection products into the industry. All of which reinforce the idea that the member’s experience has been improved.
NicoleIt is about the customer experience. While a lot of consumers would certainly like to continue doing business through an insurance agent, as life becomes more digital, I think there is a growing segment that wants a digital experience encapsulated by another.
Digital insurance: What kind of growth can we expect to see with embedded insurance?
Nicolel: We’re still early in our journey on that. We can’t share specific growth numbers, but a lot of companies are trying to figure it out [it] Outside. In terms of products, I think we believe in offering a complete embedded experience, not only the ability to buy a policy, but also the policy service, the whole insurance value chain is where it’s going to be value for the customer.