As inflation and rising interest rates continue to take a toll on insurance revenue streams nationwide, non-traditional sellers are entering the space to gain competitive advantage by offering embedded insurance to their existing customer base.
Today, major financial institutions, including banks and credit unions, are leveraging third-party embedded insurance programs (or “insurance-in-a-box” solutions) to supplement their traditional lending and other core business revenue-generating activities. To improve policy management, companies are prioritizing investments in innovative technology solutions.
And, as described in One Inc’s 12 Insurance Industry Trends for 2022 report, embedded insurance continues to find its way into the broader partner ecosystem, driving growth for more insurers through new distribution channels.
these new non-traditional insurance marketers?
Through these programs, insurance sits alongside existing trusted products and is integrated into the larger relationship that already exists between the institution and the consumer, rather than being a separate commodity offered by another entity. Doing so greatly increases the likelihood that consumers will accept these products because of the inherent trust that already exists in the existing relationship.
This is especially important today as consumers’ trust in insurance is declining.
Source: IBM
What can make the experience of buying insurance a better experience for consumers? Buy from an institution with which they already have a trusted relationship.
The growing implementation of embedded insurance programs highlights the need for non-traditional insurance sellers to leverage powerful marketing solutions that do not require significant operational investment or infrastructure.
Let’s take a closer look at how automation technology can provide new entrants into the insurance space with the necessary marketing tools to expand their embedded insurance offerings.
What is embedded insurance?
Embedded insurance allows consumers to bundle insurance with their purchase of a product or service as an add-on feature. Financial institutions do this by partnering with insurance companies that offer transaction-specific policies. For example, real estate agencies and mortgage lenders can embed homeowners insurance offers into real estate transactions.
Unpacking the Gift of “Insurance in a Box”
Embedded insurance programs are a “one-stop insurance” solution that allows non-traditional sellers to embed insurance offers into their transactions at the point of sale. The solution provides these agencies with an additional revenue stream while enabling consumers to close gaps in insurance coverage.
Consumers tend to rush into insurance purchases, often forgoing the time and research needed to make a sound purchase based on their budget and insurance needs. This results in gaps in coverage and customer dissatisfaction – two pain points consumers face when they are in a rush to find insurance.
On the other hand, this provides an opportunity for insurers and their partner agencies to engage with a loyal, already engaged, high-intent audience, improve the customer experience for this consumer segment, and tap into new market opportunities.
It’s a win-win situation for the insurer, its partner agencies, and most importantly, the customer, who will ultimately reward these efforts with continued business and brand loyalty.
Going a step further with an omnichannel
Now imagine if your financial company, such as a mortgage company, has a requirement and has a new contract with an agency that offers private mortgage insurance, or PMI insurance. You need to market these products to first-time homebuyers with low down payments.
You can have your agents offer these solutions directly, or if you want a more organic conversion on this front, you can launch an omnichannel drip campaign to ensure your customers understand the need and benefits of the PMI products offered by your chosen company.
Creating relevant information touchpoints through phone calls, emails, and other campaigns will ensure your customers understand and value your solutions. But how do you do this? Through a single marketing automation solution.
Embedded insurance programs require
Want to get into the embedded insurance space? Even if you don’t think you need one, you need a tracking solution for your marketing channels.
Any organization that offers embedded insurance solutions (or wants to enter this space) can’t afford to be distracted simply because this revenue source is perceived as easy money. Embedded insurance is a new revenue source, so make the most of it.
For those new to this uncharted territory, Phonexa’s comprehensive performance marketing software will be a huge benefit. This enterprise-grade solution is built for companies with complex use cases, and the platform is unsurpassed by any agency.
Here are some of Phonexa’s turnkey marketing solutions that can help you sell more insurance policies:
Call Logic and LMS Sync to Simplify
Identifying effective marketing channels for embedded insurance can be tricky because most organizations don’t buy traffic from multiple locations. There but they may run different types of marketing to their existing customer base.
Data on mobile phone numbers and associated databases are necessary for SMS and telemarketing campaigns. A mobile phone number is crucial updated 2024 mobile phone number data for interpersonal communication. Listing phone numbers is one way to advertise your company. People are easily reachable via cell phones. These days, purchasing a phone number list and running advertisements through it can be a wise move. allowing you to use our services.
A credit union with 20,000 account holders might run an email campaign and use Facebook ads to attract leads. With Phonexa’s Call Logic and LMS Sync. There are you can centralize the results of various campaigns to identify the best marketing channels for conversions.
Deliver and reengage customers electronically
Financial institutions that offer embedded insurance can leverage ESP integrations to run campaigns that reach customers and prospects through mobile phones and email inboxes.
Phonexa’s electronic delivery is the perfect bridge between initial communication and final conversions because it helps clients send automated emails and email chains to reengage audiences.
HitMetrix and Lynx for Conversion Rate Optimization
In the insurance marketing ecosystem HitMetrix 5 risks that can cause problems on your website monitors which personalization strategies trigger conversions. If you’re trying different products and deals on different landing pages. There the two companies work together to provide actionable data insights to optimize conversion rates.
Driving the Industry with Embedded Insurance
When looking for a comprehensive solution to alb directory streamline your embedded insurance program. The choose one that you won’t have to change in two to three years as your needs change.
Phonexa’s all-in-one marketing automation solution spans calls. There leads accounting and more driving the industry toward . This is a more synchronized omnichannel across different verticals and programs, including embedded insurance.
Are you attending InsureTech Connect
in Las Vegas, September 20-22? Let’s connect on LinkedIn to start the conversation about embedded insurance programs . A head of the world’s largest gathering of insurance industry leaders and innovators.
Interested in learning more about Phonexa’s all-in-one offering? Schedule a consultation to learn how we can support your embedded insurance marketing strategy.
