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Why advisers should care about embedded insurance – Bagley

by: Lauren Bagley, chief distribution officer at Uinsure
  • 12/04/2024
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Why advisers should care about embedded insurance – Bagley
So, what exactly is embedded insurance and why should any mortgage businesses care?

Embedded insurance simply means insurance that is integrated with a product or service into an existing customer journey. Therefore, the consumer is offered the right insurance for a product or service directly during the purchasing process.

For example, you book your all-inclusive summer holiday online and it’s convenient to add travel insurance as it’s offered as a booking option. Embedded insurance makes this possible. 

Eureka! Embedded home insurance alongside a mortgage, perhaps?

As you can see, the goal of embedded insurance is to seamlessly integrate insurance into existing purchasing processes to create the best and smoothest buying experience for the customer.

The main reason for considering embedding home insurance in your mortgage process is vast changes in consumer behaviour in recent years. Consumers demand convenience and comfort above all, which means uncomplicated and individual customer journeys in all areas are essential.

It presents a gigantic opportunity for mortgage advisers to capitalise on, because it’s within your mortgage advice process that this product becomes a need, and within your data that provides the mechanism to automate and ‘embed’ digital insurance into individual customer journeys.


Is embedded insurance right for your business?

If you are wondering what embedded insurance can mean for you, your clients and the advice you provide, here are some things to consider: 

  1. Do you currently offer home insurance consistently to all buyer types, e.g. remortgage and purchase customers? 

If you do, and it’s working – great, certainly continue. But if your business isn’t making the most of the insurance opportunity, embedded insurance would deliver this for you.

  1. How good is your data?

Ensuring data quality across your business is such a critical element to be considering, not just for embedded insurance, but wider utility as other mortgage-related tech advances. Quality data allows your embedded insurance partner to enrich and personalise insurance offerings according to individual customer profiles and preferences. For example, is it a first-time buyer with no current insurance or remortgage customer potentially switching insurance to a new provider? These data points enable deeper personalisation and supercharged customer experiences.

  1. Are you seeking business diversification? 

Embedded insurance can serve as an additional revenue stream. By earning commissions from insurance sales, you will diversify income sources and improve overall financial performance.

Embedded home insurance isn’t just an add-on; it’s a highly effective gateway to providing a comprehensive service. By integrating insurance directly into mortgage journeys, you’re prioritising clients’ needs and seamlessly addressing a very core aspect of homeownership.

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