Embedded renters insurance is a great opportunity for PropTech companies to expand their lineup with a complementary product, increase their revenue, and improve customer engagement and lifetime value (LTV). Here’s everything you need to know about why renters insurance is a good decision for PropTech businesses.
PropTech is all about optimizing the way people research, rent, buy, sell, and manage a property. When potential customers engage with PropTech solutions, they expect a certain level of convenience, seamlessness, and ease. Embedded renters insurance fits directly into those standards, and offers a new way to engage with your customers and increase revenue.
Embedded insurance exists to make the process of buying and managing insurance more streamlined, efficient, and convenient than traditional insurance. If your PropTech company offers services related to renting, you’re in the perfect position to expand your business with a product that strengthens your existing solution suite while providing new value to your customers.
As its name implies, embedded insurance is a product that is embedded into an existing purchasing experience. When your customers navigate through your website, they can be offered renters insurance at checkout as an addition to their transaction. While the traditional insurance buying process is long, disjointed, and involves multiple offline steps, embedded insurance is entirely digital, and centered on convenience.
Modern renters - and consumers in general - expect an easy, digital experience for all of their transactions. This creates problems buying insurance: faced with a difficult or clunky process, some consumers opt out of the transaction altogether. With embedded renters insurance, you can offer a product with a nearly-frictionless buying process and encourage your customers to get the coverage they need without the hassle.
When you work with an embedded insurance partner like Boost, your customers will experience a 100% digital purchasing experience— no need to pick up a phone or search for a printer ever. Renters can seamlessly purchase and manage every aspect of their insurance policy with the easy-to-use interface they expect. They can easily provide their information, get a quote, and receive their policy right from your website or app. Later, if they need to update their information or change their coverage, they can do that right from your site as well.
When it comes to customer experience, embedded renters insurance is useful and convenient, but if you choose to white-label your insurance product, it can also be seamless. White-labeled insurance products are manufactured by one company and then rebranded and sold by another company. In insurance, this means partnering with a company to resell their insurance products under your brand. This offers your company numerous advantages vs. other methods of offering insurance, including ownership of the customer relationship.
Rather than bouncing your customers around to affiliate sites, white-labeled insurance is a seamless purchasing experience, with the entire transaction taking place on your website or app. This helps you build your brand recognition and greater trust with your customers. If you want your customers to seamlessly navigate through your website from entry to purchase, white labeling is the answer.
The biggest factor and incentive for any business decision is profitability—will there be sufficient ROI to justify the time, cost, and effort? In short, yes.
There is a huge opportunity for PropTech businesses to enter the insurance market and create a new revenue stream. Not only is the insurance market huge right now—amassing over $715B in premium in 2021 alone—but it is also ripe for new entrants. 82% of millennial consumers are looking to buy insurance from new entrants, making this an extremely promising time for companies outside the traditional insurance industry to enter the market. If your business could tap into even just a fraction of the insurance market value, it could lead to significant revenue.
Additionally, insurance premiums are recurring revenue, which creates lifetime customers, rather than one-time purchasers. When your customers purchase insurance through your website, they buy the policy directly from you, you collect the premium payments, and your business profits from the recurring income. And because the transaction will take place on your site or app, you will have full ownership over your customer experience and data, which helps you to better sell to them in the future.
That leads to the next major incentive: customer retention and experience. A perk of white-label embedded insurance is that it markets to your existing customers. Rather than investing more time and money into a new audience, embedded insurance builds a deeper relationship with renters who are already in your funnel. You have already done the hard work of building a positive, trusting relationship with your customers, and this adds a new, beneficial point of engagement with them.
As previously mentioned, embedded insurance creates lifetime customers out of formerly one-time buyers. Insurance is a very “sticky” product with an average 84% customer retention rate. Customer engagement with your brand will increase because they will be interacting with you every month to make their premium payments. It provides an opportunity for your business to demonstrate greater customer service and care that will increase customers’ brand loyalty.
By offering your renting customers the protection that they need in an easy, digital, forward-thinking format, you can create deeper customer relationships and a stronger brand identity while increasing your short and long-term revenue.