4 min read
Affinity partnerships have always been an integral part of the insurance sector. Insurers have benefited greatly from affinity partners since they allow them to reach more consumers at a lower cost. For example, British Airways offers travel insurance with Allianz.
However, thanks to the latest technologies, affinity partnerships have evolved into a tech-driven practice called embedded insurance. Under this, brands sell products to consumers by packaging insurance with it. For example, Volvo XC40 Recharge Pure Electric comes with 3-year insurance from Allianz.
Such partnerships are very attractive. In today’s cut-throat competition, execution speed is key. The faster you can complete such deals, the more sales you’ll make.
Improving the speed of these deployments requires technology-based microservices architecture from back to front-end. Even though organisations put a lot of effort into product creation, poor front-end experience can easily compromise the sale.
In this blog, we will discuss how Conversational Process Automation (CPA) is the secret weapon for insurers to plan strategic partnerships with brands that offer a personalised experience to the customer and generate a lot of data and opportunities for growth for all parties.
Embedded Insurance: the latest opportunity
Experts believe embedded insurance is a $3 trillion market opportunity that focuses on making insurance more affordable, relevant, accessible, and personalized for people.
By incorporating technology and combining it with insurance functionality, third-party organisations can add risk mitigation solutions in their customer journeys. The Ant Group, for example, partnered with over 90 different supplies and offers 2000 affordable, customized life and non-life products.
Unlike direct channels that focus on selling to the customer, these channels focus more on the consumer’s personal experience.
That’s because the customer belongs to the affinity partner. Companies like British Airways usually have strict guidelines and want to ensure that all of their customers get the same treatment. A brand wouldn’t allow an insurer to sell its products to its customers if the claims experience was bad. It would affect the insurer and the affinity partner.
Hence, personalisation happens at two levels:
- Product: Modern insurance platforms handle this aspect of personalisation by enabling products to be flexible, with different wordings, deductibles, ratings, and various levels of cover.
- Experience: This is the gap in the market. Insurance platforms can create excellent products for customers and make sure that the accounting of reserving is produced correctly. Although, traditional mediums lack modularity in the front-end, resulting in bad and unpleasant customer experiences. There is no modern or personal taste that doesn’t endear customers either to the service or the provider.
So what can we do? How do we tackle this problem?
This brings us to the central point:
How Conversational Process Automation helps
Having a good insurance product without an effective front-end is like having a powerful car without the steering wheel.
Just as modern insurance platforms have incorporated the latest tools and technologies to develop custom and flexible products, they must utilize the latest technologies to improve their customer experience.
Chatbots, when supported by CPA platforms, can natively integrate to an insurance platform, in-house systems, and modern ones through API. For example, the Spixii CPA platform is integrated with Duck Creek, one of our solutions partners. The integration allows Duck Creek customers to submit their queries in a personal, immediate manner 24/7/365 while seamlessly scaling the claims process for insurers. Thus, CPA technology enables insurers to provide their customers with superior experience, ensuring the steering wheel is in place.
The Spixii CPA platform goes the extra mile too. It allows partners to adjust the conversational process and the interface of the chatbot by using the low-code modules of the platform. This is useful because each partner has its own style guide, service levels, product configuration, brand tone and voice, and more. Using the low-code modules, partners can modify the actual look and feel of their chatbots up to most granular details.
For insurers to offer such a level of customisation to their partners is game changing. It allows them to share the data and learning with the partners while lowering the configuration cost significantly. Note that such costs can make or break the negotiation of such a partnership.
Through CPA integration, insurers can enhance the personalisation of their affinity partners’ customer experience tremendously.
Conclusion
Affinity partnership is becoming more strategic for insurers to grow their top line. While it’s very attractive, this channel requires a lot of configuration from product to customer experience.
Only those insurers that have the modern technological tools in their arsenal can grasp these opportunities which require speed of execution.
Now, to avoid losing these opportunities and to increase the potential of growth, CPA can create personal and contextual experiences fitting the needs of the partners while generating data for all parties resulting in more scenarios for longer LTV and better customer relationships.In line with what Klaus Schwab said: “In the new world, it is not the big fish that eats the small fish, it is the fast fish that eats the slow fish,” are you ready to become the fast fish? If yes, then have a look at the overview of the Spixii CPA platform.
