5 Embedded Insurance Products for Bank Apps

Embedded Insurance for bank apps

It’s time for African banks and Fintechs to leverage embedded insurance products for bank apps to improve their value proposition to the diverse customer segments on the continent.

Over the past decade, banking and fintech app innovation has changed how consumers in Nigeria and Africa access banking services.

From my experience using banking services on apps like StanbicIBTC Bank or Carbon Bank, you can open an account, fund it, make transfers and more without stepping foot in a banking branch.

Looking at a report by PYMNTS, they surveyed over 2,300 consumers and found that 26% of surveyed respondents would consider purchasing life insurance policies through their primary financial institution.

You’ll agree that having embedded insurance products on bank apps should be the most logical move for banks and fintech apps.

Simply put, embedded insurance products for bank apps are the real-time bundling of relevant insurance covers for consumers within a service or app. It can provide fintech or bank organisations a unique opportunity to excite customers, reward them, and improve their value proposition and revenue.

While bancassurance does exist—aided by insurtech and unique new use cases of embedded insurance—for example, comprehensive motor insurance for vehicle financing or a credit-life product to a loan; the embedded insurance model makes the experience hassle-free for businesses and consumers.

Benefits of Embedded Insurance for Banking Apps For Consumers

  1. Adding embedded insurance products in banking apps offers more tailored premiums, flexible payment options, and claims. 
  2. It provides easy access to relevant insurance products and the protection they need.
  3. The consumers can be assured that a trusted entity underwrites every embedded product they purchase. 
  4. It removes the hassle of insurance salespersons, offering the product(s) that is not a relevant need to the consumer.

Benefits of Embedded Insurance for Banking Apps For Banks

For incumbents or startups with banking apps, embedded insurance products in their banking apps can help them:

  1. Increase banking app usability.
  2. Improve customer lifetime value and retention.
  3. Increase recurrent revenue for the business.
  4. Increase brand and product differentiation.

5 Must-Have Embedded Insurance Products for Bank Apps

Here are the top embedded insurance products banking apps can leverage to add value to their customers.

Motor Insurance

In Nigeria, reports say there are 12 million cars to be insured in Nigeria; whether for comprehensive or third-party vehicle insurance policies, embedded insurance helps banks to make easily accessible motor insurance to their apps to consumers.

An embedded vehicle insurance policy protects consumers from accidental loss (caused by fire, theft) or damages to their private, commercial vehicles while driven by you or any authorised persons and damages caused by your vehicles to third parties.

Device or Gadget Insurance

A device or gadget insurance will help provide consumers insurance protection for their devices and gadgets against accidental damages, fluid or fire damage. Premiums are affordable with flexible payment plans.

This insurance is suitable for Gen-Z and Millennials. It covers smartphones, tablets, personal computers, game consoles and more.

Health Insurance

Health insurance modules provided by Octamile’s embedded insurance infrastructure can help banking apps deliver complete or partial coverage of risk for the consumer’s medical expenses or their loved ones when they are ill.

It accommodates flexible payment of premiums (monthly, quarterly or annually), offering consumers access to uninterrupted medical coverage with a vast network of trusted providers.

Credit Life Insurance

Suitable for banking or fintech apps that offer loans. Our credit life insurance module protects the lender and borrower from forfeiture of any outstanding balance on a loan in the event of the death, permanent disability or critical illness or job loss of the borrower.

Money Insurance

Fintech and agency banking apps should add money insurance as a layer of protection for merchants and agents in their networks. Powered by Octamile’s embedded insurance infrastructure, it provides merchants and agents within the app easy access to cover from loss of money in transit, in safe, on-business-premises of the insured due to theft or robbery.

Insurance claims are also seamlessly integrated, ensuring that it is easy for merchants and agents in your ecosystem to get back on their fit.

In conclusion, the list is only a partial list of embedded insurance products for bank apps and their several use cases. Our team can help map single or multiple insurance products for your fintech or bank app use case powered by Octamile’s All-in-one embedded insurance infrastructure.

We have simplified launching insurance products for fintech apps and banks. Providus Bank, VeendHQ, KrediBank, Payforce by CrowdForce and Breeze Business Banking rely on our API to integrate credit life insurance, marine insurance, money insurance, and other customisable insurance products for consumers.

Launch embedded insurance products in minutes, not months; work with us; schedule a meeting here.

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