Businesses are increasingly prioritising assurance due to changes in regulations

Traditional insurance is largely reactive. It transfers risk to a third party and pays out only after a defined loss event such as an accident, fire or breach. Assurance, on the other hand is proactive. It focuses on reducing the likelihood of risk and improving outcomes while operations are running, said Neeraj Verma, CEO & Co-founder of Across Assist in an exclusive interaction with Bizz Buzz.

While insurance addresses the financial impact after something goes wrong, assurance works continuously to ensure systems, controls, and processes are effective, thereby preventing or minimising disruptions. Businesses are increasingly prioritising assurance due to regulatory shifts that mandate certain value-added services, rising digital and technology-led risks that are hard to price through insurance alone.

Additionally, assurance helps address key gaps such as low customer stickiness, limited ancillary revenue streams and fragmented post-sale experiences across industries like insurance, OEMs, NBFCs and digital platforms, he added

What behavioural shifts among consumers indicate a growing preference for real-time assurance over reactive insurance claims?

Consumers today expect immediate support rather than delayed compensation. Influenced by seamless digital experiences across other industries, customers increasingly define value through service quality, speed and convenience. Assistance and service-led offerings are becoming game changers, especially as competition intensifies between incumbents and new-age players.

There is also a strong shift among Gen Z consumers, who are not satisfied with just a core product. They expect comprehensive and innovative solutions that offer reassurance in real time. This behavioural change is pushing brands to move beyond claims-led insurance to experience-led assurance.

How are businesses across sectors like BFSI, automotive, electronics, and travel using assurance services to improve customer retention and loyalty?

Multiple sectors have increasingly started using assurance services to strengthen their customer retention and loyalty by addressing critical SOS moments. When devices fail, vehicles break down or journeys get disrupted, assurance steps in to convert high stress situations into predictable and supported outcomes.

This builds trust encourages repeat usage and drives long term loyalty. Assurance typically combines service protection and experience guarantees that are bundled at purchase or post purchase and acts as a sticky layer that keeps customers engaged well beyond the initial transaction.

Across sectors, the underlying approach is similar as it focuses on reducing anxiety, removing friction and giving customers clear reasons to return.

In BFSI including banks, NBFCs and fintech players, assurance is embedded into protection bundles linked to loans and cards. These include device protection, job loss cover, fraud protection, travel assistance, roadside assistance for auto loans and bill protection add ons. Institutions also provide assisted claims and concierge services where the bank or NBFC becomes the single point of responsibility rather than pushing the customer to deal with insurers directly.

Over time, loyalty is reinforced through membership or card tiers where assurance benefits improve the longer a customer stays. This support reduces churn and refinancing as customers who feel backed are less likely to leave. It also increases cross sell since customers who actively use support services are more open to upgrades.

In the automotive sector including OEMs, used car platforms, dealers and insurers, assurance is commonly delivered through extended warranties, roadside assistance and maintenance packs bundled at the time of purchase for both new and used vehicles.

Zero hassle assistance such as towing, on road repair, pick up and drop and service booking, simplifies ownership, while service network orchestration directs customers to partner garages or dealers. This approach keeps servicing within the same ecosystem which drives repeat revenue and higher lifetime value.

It also builds trust in used car transactions which improves repeat buying and referrals while annual roadside assistance and warranty renewals create predictable moments for re engagement.

In electronics, covering mobiles appliances and consumer durables, assurance is centered around protection plans for accidental damage, liquid damage, screen issues and extended warranties. Brands and retailers focus on convenience first service through doorstep pick up and drop, same day swaps and instant voucher or repair approvals. Upgrade and trade in programs are often linked to continuity of coverage.

This turns repair chaos into a controlled branded experience which reduces negative reviews and increases the likelihood of repurchase from the same retailer or brand. Over time, it locks customers into the ecosystem as they renew protection on their next device rather than just the current one.

In travel, including OTAs, airlines, hotels and visa service providers, assurance addresses some of the most stressful customer moments. This includes trip disruption support for flight delays, missed connections, baggage issues and cancellations, along with medical and emergency assistance through round the clock support, cashless coordination where available and evacuation coordination.

Confidence packages such as visa rejection support, lost document assistance, concierge services and local help further reduce uncertainty. By lowering anxiety during delays and emergencies, assurance becomes a powerful loyalty driver.

It differentiates brands beyond price and encourages customers to return to platforms that supported them when it mattered. Many players also use annual travel assistance memberships to drive repeat bookings and sustained engagement.

How is technology, especially AI and automation, reshaping the speed and quality of assurance delivery?

Technology, particularly AI and automation is transforming assurance from a manual, claim-heavy process into a real-time, predictive experience-led model. These tools significantly improve speed, consistency and reliability at the exact moment a customer needs help.

Instead of reacting after an incident, assurance systems can now anticipate issues, trigger support automatically and deliver smoother, faster resolutions which strengthens trust and overall customer satisfaction. Predictive AI enables early risk detection by analysing usage patterns behaviour signals and contextual data allowing potential issues to be identified before they escalate.

What are the most common mistakes businesses make when designing or integrating assurance-based offerings?

Most failures stem not from poor intent, but from a misunderstanding of customer behaviour during SOS moments. A common mistake is treating assurance as a superficial add-on rather than a core part of the customer experience.

Many businesses launch value-added services without adequate planning or a robust service backbone to support delivery. When assurance is not designed end-to-end with operations, partners and customer expectations aligned, it fails to deliver value at the moment it matters most.

Why are embedded and value-added services emerging as key differentiators for brands in a highly competitive market?

Core products across industries have become highly commoditised, with price, features and distribution easy to replicate. What remains difficult to copy is how a brand responds when something goes wrong. Embedded and value-added services intervene during breakdowns and emergencies.

These moments shape brand perception most strongly. By turning negative events into supportive, confidence-building interactions, assurance-driven services lead to higher NPS, stronger retention, more referrals and reduced post-purchase regret.

Where do you see the assurance ecosystem heading in the next 3–5 years, and how should forward-looking businesses prepare?

Over the next 3-5 years, assurance will evolve from a support function into a strategic trust infrastructure embedded seamlessly across consumer journeys. It will no longer be actively “sold” but inherently expected. A major shift will also be from solution-based offerings to AI-driven productisation, where assurance products are tailor-made for specific customer segments or industries.

Forward-looking businesses should invest early in technology, data and ecosystem partnerships to ensure assurance becomes a natural, integral part of their value proposition.