What began as an experiment has now become a revolution in insurance distribution. Embedded Insurance — seamlessly integrating protection into digital customer journeys of financial service providers — is fundamentally changing how, where, and when people get insured. Ageas is at the forefront of this movement, actively contributing to the latest report from the Open & Embedded Insurance Observatory (OEIO).
The report outlines that today’s digital generation demands even more convenience, speed, and personal relevance from their financial service providers, such as banks and payment and lending platforms. Instead of buying insurance as a separate product, customers expect protection to be automatically woven into their digital lives, challenging the ‘traditional’ distribution processes - from seamlessly adding a life insurance to your mortgage or a personal loan to receiving a personalised insurance based on your banking transaction. The OEIO Report concludes that Embedded Insurance in financial services has reached a critical inflection point, making this an important consideration for insurers, banks and FinTech players moving forward.
The strong natural position of traditional bank partners as banking journey orchestrators gives them a head start in this transformation. By capitalising on the joint development of API-first digital platforms, we can seamlessly integrate insurance into digital customer journeys of financial services partner companies – adding speed and efficiency. Something we also recognise at Ageas.
The pace of API development has accelerated dramatically. Integrating an insurance product within an app is now a simple 'plug-and-play' process, reducing what once took months to just a few weeks. This efficiency is driving an increase in rapid, collaborative partnerships across the industry.
The OEIO report shows that embedded insurance is gaining traction worldwide, with Asia leading the way. There, it’s already an integral part of consumers’ digital lives. In Europe, consumers are especially sensitive to privacy and trust, responding most positively to embedded products offered through familiar channels like their banking app. A conclusion that resonates with our own experiences.
Clients expect things to be digital. Clients expect things to be very convenient and quick. But clients also expect it to be safe and trustworthy.
Discover in the report how Embedded Insurance allows us to deliver insurance at precisely the right moment in the customer’s life.
Ageas Federal Life Insurance (AFLI) in India offers a frictionless term life insurance product on PhonePe, India’s largest digital payments platform, based on user “affluence scores.” The product is embedded within the PhonePe app and can be purchased in three clicks and with zero paperwork. This solution targets digitally active users with no prior insurance coverage, helping AFLI to reach new and underserved customers.
