The Right Embedded Insurance Moments – Ward’s Auto | CarTailz

Embedded insurance has been a buzzword in the auto industry for decades. The automotive industry has hoped to simplify the process of finding insurance for their customers, and insurers have sought to gain access to customers during the car buying or financing process. Yet despite years of improvement, truly embedded insurance remains “the next big thing”.

Why hasn’t embedded insurance caught on? While the technology to deliver insurance has improved, the experience of being locked in during an insurable moment isn’t quite what customers are looking for just yet. We suggest the following three reasons why customers don’t love embedded insurance.

  1. Buying a new policy (even embedded) is currently burdened with a lengthy and ineffective data collection process. In the past, the data load (how much information was required to accurately and fairly price a policy) made it difficult to embed insurance into the auto dealership and financing workflow. By limiting the data entry required, using technology and automation to price and bond home and car, friction is removed, the customer feels informed and a bond can occur immediately.
  2. Bundling is key, but not easy. According to data from Bain and Company, an average of 78% of US homeowners bundle their auto and home insurance. So it stands to reason that when buying a new car, they don’t just want to take out new car insurance, they want to bundle it. Consumers prefer bundling because it gives them a one-stop shop for managing their policies and represents an average annual saving of around 16%. If embedded insurance is to deliver a great consumer experience, bundling needs to be fast, intuitive, and provide the buyer with relevant information at the moment of consideration.
  3. Bait and switch tactics don’t work. With most comparative evaluators, the promise of savings from bundling still requires speaking to an agent.

These structural problems of insurance, that it was not offered at the right time in the most convenient and cost-effective way, no longer have to apply. Technology and underwriting can now help solve these sales challenges by aligning front and center. And this is a huge opportunity for automotive partners to seamlessly integrate insurance into their online customer experiences.

For example, Branch has partnered with operational and financial partners in the automotive industry such as open road loan To provide all applicants with embedded, hassle-free bundling, they can fully assess a cover change at the very moment they are looking for a loan. The partnership, underwriting and technology enable unparalleled customer service and claims management, supported by the airline’s sales service and claims departments.

“The ability to add value without adding complexity has deepened our relationships with our customers, increased confidence in our product, and delivered real results to our business,” he says Don Chapman, Chief Marketing Officer of OpenRoad Lending. “Working with a partner like Branch, who prioritizes customer experience as much as we do, has allowed us to rethink everything we can do for our customers.

In this model, all three consumer pain points are eliminated and the insurable moment matches the automotive shopping experience.

Embedded insurance is here to stay. The next steps are to rethink the role it could play and how to make it easier for customers to take that next step with minimal friction.

Amy Hughes: As Senior Director for Business Development for Branch Insurance, Amy helps auto loan and dealership service providers take advantage of offering simple, relevant, and compelling embedded insurance. Prior to Branch, Amy was Senior Director of Dealer Insights at Experian, where she served as a subject matter expert helping retailers use data to transform their marketing efforts. Previously, Amy was responsible for dealer sales and business development relationships for String Automotive. Amy’s business development experience includes embedded, white label and shared marketing partnerships with Staples, American Express and the Internal Revenue Service.

About branch: Branch is home and car insurance that’s easy to buy and built for savings. Through its revolutionary instant-binding capability, Branch eliminates all of the friction associated with coverage and helps consumers bundle their home and car with ease. Designed as a mutual exchange, the Branch Insurance Exchange harnesses the power of community to make insurance more accessible and affordable for everyone.

Founded in 2019 by insurance veteran Steve Lekas ​​and technology entrepreneur Joe Emison, Branch is headquartered in Columbus, Ohio. Branch is underwritten by the Branch Insurance Exchange, Everspan Insurance Company and General Security National Insurance Company (GSNIC) and is supported by SCOR.

Interested in partnering with Branch to offer home and auto insurance packages to your customers? Visit branch.com to learn more.

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