Other parts of this series:
- Creating New Models for a Digital Customer
- Emerging Business Models for Insurers: The Virtual Insurance Advisor
- The Everyday Risk Coach: Reducing Risk and Rewarding Customers
- Broadening the Customer Base with “Plug & Play” Insurance
- The Ecosystem Orchestrator: Giving the Customer Broader Options
- The Peer-to-Peer Network Operator: Tapping into new customer pools
- Insurance distribution: The need for change
Enhance the existing offerings of strategic partners.
Insurance is not always at the top of the customer’s mind, but customers are willing to consider insurance purchases “incidentally” while shopping for other needs.
Our third emerging insurance business model is the “Plug & Play” insurer. In this model, insurance is distributed by embedding point of sale options into other shopping experiences, such as those offered by retailers, travel sites, or auto manufacturers. Insurers can form strategic partnerships with these and other organizations that provide cost-effective access to sizeable new business opportunities.
The public is increasingly on board with this concept. Accenture’s 2017 Global Financial Services Consumer Survey found:
- 60% would consider buying insurance from a bank, up from 43% in 2013.
- 29% would consider buying insurance from online service providers like Amazon or Google, up from 23% in 2013.
- 38% would consider buying insurance from a home services provider, up from 20% in 2013.
- 30% would consider buying insurance from a retailer or supermarket, up from 14% in 2013.
Players outside the insurance industry are already looking at Plug & Play options. Automakers, for example, are experimenting with packages that offer insurance as well as maintenance services to prospective buyers, potentially taking market share from traditional industry players, with Tesla currently selling auto insurance in Asia by bundling it with maintenance costs into the price of a new vehicle
Next week we’ll discuss the “Ecosystem Orchestrator” distribution model.
- Read “The Future Of Insurance Distribution: New Models For A Digital Customer” Accenture.
- Read the first post in this series: “Creating New Models for a Digital Customer”
- Read the second post in this series: “Emerging Insurance Business Models: The Virtual Insurance Advisor”
- Read the third post in this series: “The Everyday Risk Coach: Reducing Risk and Rewarding Customers”