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As inflation and increasing interest rates continue to take a toll on the revenue streams of insurance businesses nationwide, non-traditional sellers are entering the space to gain a competitive edge 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 revenue-generating activities from lending and other core business efforts..
And, as flagged in One Inc’s 12 Insurance Industry Trends in 2022 report, embedded insurance continues to move into broader partnership ecosystems, driving more insurer growth through new distribution channels.
But what does that mean for these new non-traditional insurance marketers?
With these programs, insurance is positioned alongside existing trusted offerings and wrapped in the larger relationship which already exists between the institution and the consumer, rather than being a separate commodity provided by a different entity. Doing so dramatically increases the likelihood of consumers accepting these offers due to the inherent trust that already exists in an existing relationship.
This is particularly relevant now, during the time of a growing insurance trust deficit amongst consumers.
What’s one thing that can make insurance buying a better experience for consumers? Buying it from institutions they already have trusting relationships with.
The growing implementation of embedded insurance programs highlights the need for non-traditional insurance sellers to utilize robust marketing solutions that don’t require substantial operational investment or infrastructure.
Let’s take a closer look at how automation technology can arm institutions new to the insurance space with the necessary marketing tools to scale their embedded insurance offerings.
What Is Embedded Insurance?
Embedded insurance allows consumers to bundle and purchase coverage as an add-on feature when buying a product or service. Financial institutions achieve this by partnering with insurance agencies that offer policies for a given transaction. For example, real estate agencies and mortgage lenders can embed homeowner insurance offers into real estate transactions.
Unwrapping the Gift of ‘Insurance-In-A-Box’
Embedded insurance programs serve as an “insurance-in-a-box” solution, allowing non-traditional sellers to embed insurance offers into their transactions at the point of sale. This solution provides these institutions with additional revenue streams while enabling consumers to mitigate gaps in insurance coverage.
Consumers tend to purchase insurance in haste, often forgoing the time and research needed to make a sound purchase based on their budgetary and coverage needs. This results in gaps in coverage and customer dissatisfaction — two pain points consumers face when rushing to find coverage.
On the flip side, these provide a chance for insurers and the institutions they partner with to engage with a captive, already-engaged, and high-intent audience, improve the customer experience for that consumer base, and tap into new market opportunities.
This results in a win-win situation for insurance carriers, the institutions they partner with, and, most importantly, their customers, who will ultimately reward these efforts with their continued business and brand loyalty.
Taking It a Step Further With Omnichannel Outreach Strategies
Now imagine if your financial firm — say, a mortgage company — has a requirement and a fresh contract with an agency that offers private mortgage insurance or PMI coverage. You need to market the offerings to first-time homebuyers with lower down payments.
You can have your agents offer these solutions straight up, or if you’re aiming for a more organic conversion on this front, you can launch an omnichannel drip campaign that ensures your clients understand the need and benefits of a PMI offering from the firm of your choosing.
Creating relevant informational touchpoints through calls, email, and other campaigns will ensure that your clients understand and value your solution. But how do you get there? Through a singular marketing automation solution.
Embedded Insurance Programs Need a Singular Tech Solution
Thinking of embarking on the embedded insurance space? You’ll need a tracking solution for your marketing channels, even if you think you don’t.
Any organization that offers an embedded insurance solution — or wants to enter the space — cannot afford to put forth a half-hearted effort simply because this revenue stream is considered easy money. Embedded insurance is a new revenue stream, so capitalize on it.
This is where newcomers to this unchartered territory can count on the all-in-one element of Phonexa’s performance marketing software to pay huge dividends. The enterprise-grade solution is built for companies with complex use cases, and the platform is one that no institution will outgrow.
Here are some of Phonexa’s turnkey marketing solutions that can help you sell more insurance policies:
Call Logic and LMS Sync to Simplify Call and Web Lead Management
Financial institutions can create speedy interactions with call representatives by using trackable phone numbers to acquire detailed attribution on all inbound call traffic. Outbound calls can also be managed to expand offerings and re-engagement strategies.
With this dynamic duo, call and web leads can be tracked and distributed quickly, building a more efficient workflow and expediting speed-to-contact with customers interested in embedded insurance.
Identifying efficient marketing channels can be tricky with embedded insurance since most organizations are not buying traffic from multiple locations, but they may be running different types of marketing to their existing client base.
For instance, a credit union with 20,000 account holders may launch email campaigns and use Facebook ads to entice prospects. With Phonexa’s Call Logic and LMS Sync, you can centralize outcomes from various campaigns to determine the best marketing channels for conversions.
E-Delivery for Client Engagement and Re-Engagement
Financial institutions offering embedded insurance can leverage ESP integrations to build campaigns that reach customers and prospects on their mobile phones and email inboxes.
Phonexa’s E-Delivery is the perfect bridge between initial communication and eventual conversion, as it helps clients send automated emails and email chains to re-engage audiences.
In the insurance marketing ecosystem, HitMetrix monitors which personalization tactics trigger conversions. When working together, the duo provides actionable data insights for conversion rate optimization if you’re experimenting with different offerings and deals across various landing pages.
Moving the Industry Forward with Embedded Insurance
When looking for a comprehensive solution to streamline your embedded insurance initiatives, pick one you will not have to change in two or three years, just as your needs change.
Phonexa’s all-in-one marketing automation solution for calls, leads, clicks, email, SMS, accounting, and more, has carried the industry toward a more synchronized omnichannel direction across different verticals and initiatives, including embedded insurance.
Are you going to InsureTech Connect in Las Vegas from September 20 to 22?
Let’s connect on LinkedIn to start the conversation around embedded insurance initiatives ahead of the world’s largest gathering of insurance leaders and innovators.
Interested in learning more about Phonexa’s all-in-one offerings? Schedule a consultation to discover how we can power your embedded insurance marketing strategy.