THE EMBEDDED INSURANCE REPORT:
Research shows Canadian consumers desire insurance & warranty offerings from their banks
Suppose your bank, with your permission, monitored your transactions and offered a prompt for purchasing protection products based on your purchase history inside of your banking app. Please indicate how interested you would be in allowing them to make these offers.
The results overwhelmingly found that Canadian consumers have a strong desire for bank-embedded insurance offers, even despite national government regulations prohibiting their sale. 67% of Canadian digital bank customers would be highly interested in receiving embedded insurance offers based on their transaction data, as would 57% of traditional bank customers. ‘Trust in banks to protect personal data’ is the primary driver for their interest, stated by 40%.
The research aligns with data across the globe that points to significant demand for timely and relevant transaction-based insurance offers, with the majority of consumers showing extremely high preferences if they’ve recently made big purchases or had major life events especially. Notably the data shows that the traditional ‘second step’ of insurance distribution is outdated and not aligned with the expectations of an increasingly digitized customer base. 75% of Canadians who chose a traditional insurance model in the last 12 months would prefer bank-embedded offers next time.
