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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 build a digital strategy around it? At DIGIN 2023, Rebecca Nichol, Assistant Vice President of Strategic Partnerships Nationwide, and Brian Disbro, Assistant Vice President of Tech Enterprise Partnerships, will provide the answers you’re looking for in their session, “Unleashing the Power of Embedded Insurance.” They spoke with Digital InsuranceGrace Crane’s to preview their discussion.
Digital Insurance: You plan to search Among the opportunities as well as the challenges surrounding embedded insurance. But let’s start with a definition of it. Can you tell me how you define “embedded insurance” as a concept?
Rebecca Nicol, Nationwide: This is when insurance carriers combine their customer journey with that of another company – taking two customer purchase paths and offering a new insurance and protection solution. It could be in an industry-related company; For example, we are offering insurance in the context of a consumer purchasing a product that is not insurance, such as perhaps buying their car or taking out a mortgage. It truly provides a more seamless and convenient experience for the customer to get their insurance. So we are trying to meet customers where they are running other businesses to give them access to insurance products.
Revolutionizing any of these situations – what Nationwide calls Mission Moments That Matters, when you’re in an accident, when you’re buying a car, there are times where an embedded journey will not only create a more seamless experience with a company Nationwide or a partner Like, but it really has the opportunity to greatly improve that customer experience, where it can be incredibly different.
Digital Insurance: How do digital solutions and technologies enable embedded insurance and how do they work?
Brian Disbrow: If I think about a core capability that companies really need to have an embedded offering, it’s clearly how digital technologies like APIs are coming together to expose that value chain in new and innovative ways, as Rebecca says. The way Nationwide thinks about it, APIs are the core technology that powers embedded insurance. One of my roles here is to run our API platform – we call it our partner platform.
Other things that really need to go to market [include] White-labeling products and a really powerful compensation strategy. you [need to] Understand what a business strategy will be around you to offer security products depending on your partner’s needs. We are a highly regulated industry. If you don’t have a clear and strong compensation strategy, or indeed, you hinder your ability to get multiple solutions that you can go to market.
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Digital Insurance: What are the benefits of offering embedded insurance products – specifically, what are your goals in the types of services you provide with these products, including embedded insurance?
Disbro: I think the No. 1 value is that it’s a customer journey. We’re creating new and innovative experiences that create ways you can seamlessly integrate industry-leading Nationwide insurance protection products. All of that has power in the idea that the member experience has been enhanced.
nicole: It’s about the customer experience. While many consumers certainly want to continue doing business through an insurance agent, as life becomes more digitized, I think there is a growing segment that wants a digital experience wrapped around another experience.
Digital Insurance: What kind of growth can we expect with embedded insurance?
nicolel: We are still early in our journey towards that. We can’t share specific growth numbers, but many companies are trying to figure it out [it] In terms of out product, I think we believe that we offer a fully embedded experience, not just being able to buy a policy, but also servicing the policy, the entire insurance value chain is where the value is going to be for the customer.