Experience is the foundation of your relationship with your customers. These days, customers aren't just comparing insurers and agencies to each other, they're looking at how every industry serves its clients. If you want to succeed, you have to deliver a streamlined buying experience that caters to customers' needs and preferences.

People will choose the easy, straightforward process over the complicated and frustrating one every day of the week, so you need to provide a seamless customer journey. That's why it's time to invest in embedded insurance.

Embedded insurance is as simple and straightforward as insurance buying could be. It's a strategy that involves integrating insurance products and services into the purchase or use of another product or service, typically offered by a non-insurance company.

The next time you buy concert tickets or flights, keep an eye out for an option to insure your tickets. In fact, any time you've ever been offered an extended warranty, you were being offered embedded insurance. By establishing a strong connection between a purchase and insurance, customers feel more at ease and confident in making a secure purchase. That peace of mind is not only good for customers—it's also great for your bottom line.

Compared to the other products, insurance has a low rating in terms of being “easy" to research, buy and service, according to a study by Majesco. But don't worry—embedded insurance is here to save the day. By acknowledging the challenges customers face and bridging the gap between insurers and consumers, embedded insurance can meet customers where they are, streamlining everything and making your customers' lives easier.

In the past, many insurance companies thought their job was done once the policy was sold. But often, customers felt forgotten or disconnected from their insurance provider. Things are different now. Embedding insurance into the purchase helps consumers feel recognized and connects insurance to the purchase journey. This way, there is a stronger connection between the purchase and the insurance experience.

Embedded insurance allows you to capitalize on the initial excitement customers have when they buy a product. And once they see how the product and insurance are intertwined, it opens up a whole new world of opportunities. Sixty-one percent of consumers will pay at least 5% more if they know they'll receive great customer experience, according to a 2021 Emplifi study. So, if you establish deeper connections between purchases and insurance, you can capitalize on the desire for a top-notch experience.

Embedded insurance puts the customer first and turns the insurance buying process into a streamlined, easy-to-handle experience. By integrating insurance into the buying journey, you can eliminate complexities, improve accessibility and ensure your customers have a smooth ride all the way through.

Independent agents can explore embedded insurance opportunities by identifying industries or non-insurance products where insurance can be integrated seamlessly. By leveraging technology and your existing partnerships to collaborate with companies that offer complementary services, you may open up a new revenue stream.

A seamless experience gives customers that warm and fuzzy feeling of security while creating stronger connections between the product and insurance. By prioritizing customers and delivering an amazing experience, you can boost your profits and build long-lasting relationships with them. With embedded insurance, everyone wins.

Raghav Tanna is senior vice president of small commercial lines at Applied Systems and chief operations officer of Tarmika.