PYMNTS June 2021 Embedded Insurance Report: Leising Transaction Data to Expand Coverage in a Digital-First Market, produced in collaboration with Cover Genius, asks a critically important question at a pivotal time in the growth of contextual commerce: “What are the best ways to reach potential insurance customers in this unprecedented digital shift, and which institutions are best placed to do so?”
Asking this question among others of a census-balanced survey of more than 3,550 US consumers, our researchers found that 62% “have experienced major events or made major purchases in the past 12 months – and 41% obtained insurance to cover them”.
The study adds that “the most common major purchases were expensive home furnishings, which 22% of consumers said they made, personal electronics (20%) and vehicles (19%)” among other activities. that sparked interest in insurance.
Another primary motivator emerging from new data is the power of convenience in insurance buying decisions, especially when offered in context by trusted entities.
“Convenience is naturally the main reason respondents found in-bank insurance offerings appealing,” according to the June In-Insurance Report, finding that 49% of consumers were “at least somewhat interested in these offers, see them as an easy and convenient way to get coverage. Confidence is high, with 46% of this group believing that banks will protect data – “a vital consideration when dealing with consumer transaction history”.
One of the most impactful findings of the new research is that “traditional providers – insurance companies and brokers – are failing to meet demand for coverage in the broad categories that consumers care about,” according to the study, because just 4% of consumers obtained extended warranties on expensive electronics through traditional channels, “but 70% would be ‘very’ or ‘extremely’ interested in bank-integrated offers.”
“This pattern extends to more common types of coverage, including life and health insurance: 60% of those who obtained these types of policies through traditional providers would be ‘very’ or “extremely” interested in matching in-bank offers”, or roughly three times the level of interest that “consumers have overall for these types of offers”.