Bridging the digital gap with embedded insurance

In today's rapidly evolving digital landscape, embracing technology has become a necessity for individuals and businesses alike. The shift towards relying more heavily on technology has meant that people flock to businesses that offer services using the level of technology that they are comfortable with. Someone uncomfortable with technology is more likely to visit the pizza place that allows them to call in an order than a place that requires them to place an order via app.

In practice, this means that businesses can either be a niche product or service and cater to one type of technology user or adapt their business practices to meet all customers where they are, technologically speaking. When it comes to digital insurance adoption, it's crucial to understand how these groups interact with technology and how to tailor insurance solutions to meet the unique needs of your customers, no matter which group they fit into.

So what are these groups?

Embracing seamless integration

For many individuals born after the year 1980, technology is second nature. Born into a world of digital advancements, they effortlessly incorporate digital tools into their everyday lives – many growing up accustomed to the everyday use of computers, mobile phones and more. As such, the integration of tools offering to ease their lives, like loading music and insurance capabilities into their preferred apps and platforms, is not only welcomed but expected. They value convenience and efficiency, making them open to digital insurance adoption and other digital solutions.

Reluctant but open

Many people who were born right before the widespread adoption of digital technology were initially hesitant, but they have learned to navigate the digital landscape, especially in light of global events like the COVID-19 pandemic, which forced many to lean into technology due to the enforced remote work environment. Instead of holding in-person meetings, they had to pivot to video calls; instead of ordering a sandwich at their favorite restaurant, they had to utilize a delivery app. In fact, according to a 2020 Pew Research study on the pandemic, 53% of Americans said the internet was essential during the outbreak. This group appreciates the efficiency and freedom that technology offers but may still prefer in-person experiences as they provide a sense of connection and empathy that is difficult to replicate via video. For this group, embedded insurance with human interaction is ideal. They seek the convenience of online channels but also value the availability of a live person for personalized support.

For example, someone who grew up with computers and the internet might prefer to research, get estimates and purchase auto insurance online, relying on online reviews, social media and digital platforms like VIU by HUB. In contrast, this group might choose to gather information and make purchases through traditional means, such as calling a real person to make sure they aren’t missing any options or relying on recommendations from friends and family.

Adapting to today’s reality

There are still many people who find it hard to adapt to rapid technological changes that may seem like afterthoughts to the previous groups. These people are often, though not always, older adults. Largely due to the pandemic, often with limited prior exposure to technology, they found themselves thrust into the digital world. While the transition was overwhelming, many in this group recognize the benefits of embracing technology, including the ability to watch their loved one’s wedding via video or access essential services, like insurance, online. Some are thriving in the digital world, others are finding it difficult to move past their years of conditioning in a non-digital world. This group values having the ability to speak to a real person when making a big decision or using services like embedded insurance. This human element can alleviate some of the challenges of joining the digital world, including digital insurance adoption.

Tailoring embedded insurance solutions

A truly customer-centric approach lies in effectively serving all three distinct groups. This means understanding what each group wants and how to deliver it in a way that the other groups are free to benefit from or ignore. This may result in multiple ways to achieve the same goal – for example, offering insurance quotes digitally or by phone – or it may mean providing additional education for people less comfortable with online services. What does that mean in practice?

For those who seamlessly integrate technology into their lives, a focus on smooth integration and personalized offerings is paramount. They want everything at the touch of their fingertips, from ordering delivery to purchasing an insurance policy. The group who has learned to adopt digital tools, thrive with simplified onboarding processes, intuitive interfaces and accessible support channels. Meanwhile, people who are still adapting to this digital shift, require a strong emphasis on human support to navigate this new landscape.

VIU by HUB has addressed this by offering multiple ways to get insurance quotes and manage existing policies. Customers can use our mobile app, website or call our VIU by HUB Advisory Team to speak with a licensed agent. Anyone can use any of these methods, but they were created with these groups in mind.

Tailoring embedded insurance to leverage preferences for these groups can make sure that each group – and individual customer – receives a truly customized experience from an organization and decide on their own personalized level of digital insurance adoption.