Embedded Insurance

Covered customers save on average $838* anually savings *Based upon anonymized savings data for dwelling insurance from 7/31/2023 - 6/30/2024

87 Net Promoter Score† †NPS® calculation averages post-purchase customer satisfaction surveys from 1/1/2024 - 6/30/2024.

Insurance shouldn't be an afterthought in your customers' financial journeys. When industries integrate insurance seamlessly into their platforms, they transform a traditionally complex process into a value-adding service that drives revenue and enhances customer satisfaction. Embedded insurance — the integration of insurance products directly into your existing customer workflows — is revolutionizing how financial services providers help customers protect their homes, vehicles, and other assets while creating new revenue streams. Leveraging embedded insurance technology can increase customer lifetime value, streamline operations, and generate sustainable revenue through insurance partnerships.

Seamlessly integrating into your existing workflow, our digital insurance marketplace allows your customers to compare insurance quotes from a variety of A-rated carriers.

What Is Embedded Insurance?

Embedded insurance represents a shift in how insurance products are delivered to consumers. Rather than treating insurance as a separate transaction, embedded insurance integrates coverage options directly into the purchase journey of related products or services. This integration happens when insurance becomes relevant to the customer, creating a natural and contextual buying experience.

When a customer purchases a home, car, or other significant asset, embedded insurance allows them to secure necessary coverage within the same transaction flow. This seamless integration eliminates the traditional fragmented approach where customers must separately research and purchase insurance products, often through multiple channels and providers. The concept transforms insurance from a standalone product into an integral part of the primary purchase, making protection a natural extension of the customer's investment.

How Does It Work?

Embedded insurance operates through sophisticated technological integrations that connect insurance providers with various customer touchpoints. For example, when a customer applies for a mortgage, the lending platform can automatically present relevant homeowners insurance options based on the property details and loan information already collected. Similarly, auto dealerships can offer car insurance options during the vehicle purchase process, using the car's specifications to generate accurate quotes instantly.

The technology behind embedded insurance leverages APIs, machine learning, and data analytics to deliver real-time quotes and personalized coverage recommendations. This infrastructure enables businesses to present insurance options through their existing platforms, whether it's a website, mobile app, or point-of-sale system. The integration can be customized to match the business's branding and user experience, creating a cohesive journey for customers.

Advanced algorithms analyze customer data to determine appropriate coverage levels and pricing. This automated process considers multiple factors, including location, asset value, usage patterns, and risk factors, to generate tailored insurance recommendations. The system can instantly compare options from multiple carriers, presenting customers with competitive quotes and coverage options that best match their specific needs.

Industry Applications and Use Cases

Financial institutions and lenders must evolve their business models to meet changing consumer expectations and maintain competitive advantage in an increasingly digital marketplace. Embedded insurance represents a strategic opportunity to transform traditional distribution channels while creating new value for customers and partners alike. The power of embedded insurance manifests differently across industries, each with unique opportunities to enhance customer experience and generate revenue. Here's how embedded insurance transforms key sectors.

Financial Services and Banking

Financial institutions are uniquely positioned to offer embedded insurance solutions at critical moments in their customers' financial journeys. Banks and credit unions can seamlessly integrate insurance offerings into their digital banking platforms, mobile apps, and lending processes. For example, when a customer opens a new savings account or applies for a credit card, relevant insurance products like life insurance or identity theft protection can be presented as natural complementary services.

The integration of insurance into banking platforms also enables financial institutions to leverage their existing customer data for more accurate risk assessment and personalized coverage recommendations. This data-driven approach improves conversion rates and helps institutions better serve their customers' comprehensive financial needs.

Real Estate and Mortgage

The mortgage and real estate sector presents one of the most compelling use cases for embedded insurance. During the home buying process, customers must secure various types of insurance, including homeowners insurance, flood insurance, and coverage for other assets. By embedding insurance options directly into the mortgage application workflow, lenders can streamline the closing process while ensuring customers obtain the necessary coverage.

Our platform enables mortgage lenders to automatically populate insurance applications with data already collected during the loan process, significantly reducing friction and processing time. This integration can cut days off the closing timeline while providing valuable cost savings opportunities for borrowers. Additionally, the system can proactively monitor coverage requirements and policy status, promoting continuous compliance with loan terms.

Automotive Industry

Auto dealers and lenders can transform their F&I departments through embedded insurance solutions. Rather than treating insurance as an afterthought, dealerships can integrate coverage options directly into the vehicle purchase process. This integration allows customers to compare insurance quotes based on their selected vehicle's exact specifications, driving history, and other relevant factors.

The system can automatically adjust insurance quotes in real time as customers explore different vehicles or financing options, helping them understand the total cost of ownership. This transparency improves customer satisfaction and can increase F&I product attachment rates while reducing the time spent in the finance office.

Enhance Customer Value with Embedded Insurance

Enhancing Customer Experience in the Auto Industry with Embedded Insurance

Seamless Shopping Experience

Modern consumers expect frictionless digital experiences in every aspect of their lives, including insurance purchases. Embedded insurance meets this expectation by eliminating traditional pain points in the insurance buying process. Instead of navigating multiple websites, speaking with various agents, or comparing quotes manually, customers can view and purchase insurance coverage within platforms they already trust and use.

This streamlined approach saves time and reduces the cognitive load on customers. By presenting insurance options at relevant moments, businesses help customers make informed decisions about protection when it matters most. The convenience factor significantly increases the likelihood of customers securing appropriate coverage for their assets.

The integration of insurance into existing purchase flows also enables businesses to leverage previously collected customer data, eliminating redundant form-filling and reducing application time. This efficiency improves the customer experience while increasing conversion rates and customer satisfaction scores.

Reinventing the Insurance Shopping Journey

The traditional insurance shopping experience is being transformed through innovative technologies and data-driven approaches. Advanced analytics and artificial intelligence enable insurers to offer highly personalized products tailored to each customer's specific needs and risk profile. This personalization extends beyond basic demographics to include behavioral data, usage patterns, and real-time risk assessment.

Telematics and IoT devices are revolutionizing usage-based insurance products, particularly in the auto insurance sector. These technologies provide accurate risk assessment and enable dynamic pricing based on actual driving behavior and vehicle usage patterns. Additionally, AI-powered chatbots and virtual assistants offer round-the-clock support, helping customers navigate their insurance options and manage claims efficiently.

The implementation of blockchain technology is further enhancing the embedded insurance experience by improving transparency and reducing fraud. Smart contracts automate claims processing and payment disbursement, while distributed ledger technology supports secure and immutable record-keeping. These technological advancements contribute to lower operational costs and improved customer trust.

Empower Your Customers with Embedded Insurance

Embedded insurance represents a significant opportunity to enhance customer satisfaction and protection. By integrating insurance offerings at the point of need, businesses can help customers make informed decisions about protecting their investments. This approach has been shown to increase insurance adoption rates significantly, as customers appreciate the convenience and contextual relevance of the offerings.

The success of embedded insurance relies heavily on sophisticated technology platforms and APIs that enable seamless integration with various digital ecosystems. These technical capabilities allow businesses to offer insurance products without disrupting their existing customer journey, creating a natural extension of their core services.

Data-driven personalization ensures that customers receive relevant insurance policy options based on their specific circumstances and needs. This targeted approach improves customer engagement and increases the likelihood of policy purchase, while also reducing the risk of underinsurance or overinsurance.

Enabling Customer Loyalty and New Revenue Streams

Embedded insurance creates significant opportunities for businesses to strengthen customer relationships while generating additional revenue. The global embedded insurance market is projected to reach over $700 billion by 2029, highlighting the enormous potential for businesses to participate in this growing sector.

By offering relevant insurance products at the right moment, businesses can provide additional value to their customers while creating new income streams through revenue sharing arrangements. This approach enhances customer satisfaction while increasing customer lifetime value and loyalty.

The integration of insurance products into existing customer journeys creates multiple touchpoints for engagement and service delivery. These interactions provide valuable data insights that can inform product development, marketing strategies, and customer service improvements.

Our Innovative Approach

Promoting Transparency and Expertise

At Covered, we believe in complete transparency throughout the insurance shopping process. Our platform provides clear, comprehensive information about coverage options, pricing, and policy terms. Our licensed, non-commissioned insurance advisors offer unbiased guidance, ensuring customers receive recommendations based solely on their needs rather than sales incentives.

We maintain rigorous compliance standards and regularly update our systems to align with evolving insurance industry regulations. Our commitment to transparency extends to our pricing models, policy terms, and claims processes, ensuring customers fully understand their coverage and obligations.

Proactive Monitoring for Optimal Rates

We continuously monitor our customers' policies to identify opportunities for savings and improved coverage. This proactive approach ensures customers always have access to competitive rates and appropriate protection levels as their needs evolve. Automated monitoring systems alert customers to potential savings opportunities, allowing them to make informed decisions about their insurance coverage.

Our sophisticated monitoring platform analyzes numerous factors, including market conditions, carrier pricing updates, and changes in customer circumstances to identify opportunities for policy optimization. This ongoing attention to customer needs helps maintain long-term satisfaction and loyalty.

The Power of Our Insurance Marketplace

Offering Competitive Rates from A+ Rated Carriers

Our marketplace brings together over 50 top-rated national and regional insurance companies, providing customers with extensive coverage options. This comprehensive network enables us to offer competitive rates across various insurance products, from homeowners and auto insurance to specialty coverage like flood, pet, and umbrella policies.

Each insurance company in our network undergoes rigorous vetting regarding financial stability and service quality. Our relationships with these carriers allow us to negotiate competitive rates and secure exclusive offerings for our customers. The breadth of our provider network ensures we can meet diverse customer needs across all 50 states.

Effective Integration with Your Ecosystem

Every business has unique technical requirements, operational workflows, and customer engagement models, we've developed flexible integration solutions that adapt to your specific needs. Our integration options are designed to minimize implementation complexity while maximizing the value of embedded insurance for your organization. Whether you're a mortgage lender looking to streamline the homebuying process, an auto dealer seeking to enhance F&I offerings, or a financial institution aiming to expand your service portfolio, our technical solutions can accommodate your infrastructure and growth objectives.

Each integration pathway is built with scalability in mind. Therefore, as your business grows, your embedded insurance capabilities can expand seamlessly. Our experienced implementation team works closely with your technical staff to determine the most effective integration strategy, considering factors such as your existing technology stack, resource availability, timeline requirements, and customer experience goals. We offer multiple integration options to suit different business needs and technical capabilities:

White Label Experience - A fully customizable insurance shopping journey that maintains your brand identity while providing access to our comprehensive marketplace. This solution includes branded customer interfaces, documentation, and communication channels.
API Integration - A sophisticated solution that embeds our insurance marketplace directly into your existing platforms and workflows. Our RESTful APIs support real-time data exchange and quote generation
Bulk Data Processing - A streamlined approach that leverages customer data to generate timely, relevant insurance quotes. This solution is particularly effective for businesses with large customer bases seeking to offer insurance at scale.
Warm Transfer/IVR Systems - A seamless handoff system that connects your customers with our insurance advisors while maintaining a consistent experience. This option includes customizable scripts and transfer protocols to ensure smooth transitions.

Quality insurance coming from trusted brands

Get Ready to Build Revenue for Your Business

Partner with Covered to transform your insurance offerings and create new revenue opportunities. Our advanced technology platform, combined with our expert insurance advisors, delivers a superior insurance shopping experience for your customers. We handle the complexities of insurance integration and customer service, allowing you to focus on your core business while benefiting from increased customer satisfaction and new revenue streams.

Our partnership model includes comprehensive support for implementation, training, and ongoing optimization. We provide detailed analytics and reporting to track performance metrics and identify areas for improvement. Our dedicated partner success team enables smooth operations and helps maximize the value of the embedded insurance program.

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FAQs

What makes embedded insurance different from traditional insurance distribution?

Embedded insurance integrates seamlessly into existing purchase journeys, offering insurance products exactly when customers need them. Unlike traditional distribution, which requires separate transactions and multiple touchpoints, embedded insurance creates a unified, contextual experience within your existing platforms. This integration reduces friction, improves conversion rates, and enhances customer satisfaction.

How does embedded insurance benefit my business?

Embedded insurance generates new revenue through commission sharing, increases customer retention by providing valuable services, and enhances customer satisfaction by simplifying the insurance purchase process. It also differentiates your business by offering comprehensive solutions that meet all your customers' needs in one place. Additionally, the data insights gained from insurance interactions can inform broader business strategies and customer service improvements.

How quickly can my business implement embedded insurance?

Implementation timelines vary based on the chosen integration method, ranging from 2-3 weeks for white label solutions to 6-8 weeks for full API integration. Our team works closely with your organization to determine the most effective implementation strategy based on your specific needs and technical requirements. We provide comprehensive support throughout the implementation process, including technical documentation, testing assistance, and staff training.

What types of insurance products can be embedded into my business?

Our marketplace offers over 28 insurance products, including home, auto, flood, life, pet, and umbrella insurance. We can customize the product offerings based on your business model and customer needs, ensuring relevant coverage options for your specific market. Each product is backed by top-rated carriers and supported by our expert insurance advisors.