How banks use insurance to improve customer experience

Is bancassurance the best example of Embedded Insurance? The Boston Consulting Group explores this insurance distribution opportunity in a recent report, offering valuable insights for both banks and insurers. The report begins by examining why retail banks should prioritize initiatives like bancassurance. Facing increasing cost pressures and revenue challenges, this model presents a compelling business case. It also outlines the benefits for insurers, emphasizing the channel’s potential to enhance profitability. For customers, the integration of insurance with banking services offers tailored solutions by leveraging transactional data. ✨ To me, this capability enables bancassurers to identify key life moments, better understand customer needs, and push relevant insurance products accordingly. BCG also identifies eight critical areas that incumbents must focus on to thrive in this space. These include advanced data capabilities and leveraging price and product differentiation as competitive edges. Notably, the report highlights a significant performance gap between market leaders and their peers, underscoring the need for strategic alignment. Finally, the report explores various partnership models, detailing the advantages of each approach. By providing a clear framework for collaboration, this offers a roadmap for banks and insurers to capitalize on the growing potential of bancassurance. #insurance #fintech #venturecapital

With 3.2 million bank customers holding insurance policies, Nubank has quietly built one of the most powerful loyalty engines in modern banking. The world's largest and fastest-growing neobank is proving that insurance isn't just protection. It's a growth product. Their insurance adoption is outpacing user growth Since 2023, Nubank's total customer base grew ~35%, but insurance subscribers nearly doubled. What it means for their business? 💰 Predictable, recurring income Nubank is expected to generate US $33.6 million in insurance commissions this year, and this for them is a predictable recurring income grow YoY. 📈 Higher engagement and retention Per their own disclosure — "The continued growth in ARPAC is primarily driven by higher product adoption, particularly credit cards, investments, and insurance." "Customers with multiple products tend to transact more frequently and remain longer within our ecosystem." Insurance users are stickier. They use more products, generate higher ARPAC, and are less likely to churn. Why it works? Here is what they had to say - 1. Seamless digital integration: "Growth in insurance customers was driven by simple digital journeys integrated within the Nu app." 2. Smart cross-sell: "The increase in insurance adoption reflects our ability to cross-sell protection products to existing credit and savings customers." 3. Affordable, inclusive design: "Adoption has been fueled by affordable pricing and product designs tailored for underserved and low-income segments." What Credit Unions, Regional banks and other Fintechs can take away from this: 1. Insurance deepens member relationships It’s not just about selling cover, it’s about amplifying the value of everything else you offer. Insurance strengthens trust, drives more frequent interactions, and increases engagement across other products. 2. Keep it embedded and effortless Members shouldn't have to leave your ecosystem to protect what matters. Insurance should live where they already bank. 3. Get marketing and operational lift, not extra workload Nubank's growth didn't come from outbound selling - it came from smart, data-driven cross-sell inside trusted channels. 4. Choose insurance products that reflect your purpose Nubank picked life and credit protection first because they aligned with with what the brand stood for: financial empowerment and resilience. Eleos Life is your B2B2C insurance partner - offering white-labelled, embedded life and income (disability) insurance powered by AI guidance and free wellbeing perks. No hassle. No cost. If Nubank can turn millions of customers into loyal policyholders, Eleos makes it effortless for you to do the same. More about us in the comments.

#Insurance, traditionally an offline hassle, is being revolutionized for #mobile by agile #digitalbanks. They're transforming a clunky #product into a seamless, contextual part of the everyday experience. Forget agent calls and lengthy forms; Grab offers ride insurance in a tap, Shopee protects your wallet effortlessly, ZA bank provides instant #underwriting, Monzo simplifies contents insurance, Techcombank offers one-tap accident protection, and Nubank reimagines life insurance with intuitive controls. This isn't just a new offering; it's about smart distribution, superior #CustomerExperience, and building #trust, presenting a significant opportunity for digital #banks to provide genuine value. https://buff.ly/eP3UPru #Innovation #Fintech #Banking #DigitalBanking #OpenBanking #API #FinancialServices #CoreBanking #Architecture #Data #Tech #Security #Compliance