Success of embedded insurance is completely based on seamless integrations

Success of embedded insurance is completely based on seamless integrations and delightful customer experience both at the point of purchase and during claims. “When done right, it can transform insurance products from a standalone product to a part of daily transactions”, says Arti Mulik, Chief Technical Officer at Universal Sompo General Insurance in an exclusive interaction with Bizz Buzz.

What role do you see embedded insurance playing in reshaping traditional distribution channels?

Partnership driven B2B ecosystems like Retailers, Fin-Tech and Travel Platforms are increasingly replacing traditional agent led models in some categories of products. This marks a shift from reactive to proactive distribution, where insurance is seamlessly integrated into customer journeys. The speed and simplicity enabled by API integrations and cloud platforms are truly game changers for customer experience. Small ticket, event specific policies that are relevant to the current lifestyle are the best type of products for embedded insurance.

Success of embedded insurance is completely based on seamless integrations and delightful customer experience both at the point of purchase and during claims. When done right, it can transform insurance products from a standalone product to a part of daily transactions.

How are insurance products being simplified to ensure greater transparency and digital accessibility for consumers?

Modular product designs that offer flexibility to choose coverage as per individual requirements are more customer friendly as compared to products with limited choices. When modular products are clubbed with responsive websites and mobile apps that provide access to quotes and policy documents, they become powerful enablers of convenience. Self-service portals and AI Chatbots are great digital tools that help smoothen customer journeys.

Customers today have experienced the advantages of quick commerce and are accustomed to speed and efficiency. Delivering prompt services is fundamental for any business striving to earn their trust and loyalty. That’s why we invest in building trust and credibility through customer ratings and reviews, which play a vital role in positive user experiences and spreading the word- of- mouth.

How is AI being leveraged to streamline underwriting and enhance claims processing?

AI tools for automated risk assessments and predictive analysis are being used across most retail underwriting systems, thereby enhancing accuracy and efficiency. Additionally, AI flags for detecting fraud are great additions for maintaining a good portfolio. Image and document analysis for checking the authenticity of documents and Virtual Chatbots have been great enablers for customer interfacing platforms, thereby improving the overall claims experience. Together all these technologies improve the overall experience for both customers and company executives.

What led to the decision to launch pet insurance, and how has the market responded so far?

We observed a notable rise in pet ownership among the young demographics, that is basically due to increased disposable income and hence the changing lifestyle preferences. More singles and couples are seen adopting Pets and caring for them as good as family members. Thus, based on our internal research on the needs of Pet parents, we introduced Pet Assure. It has a wide range of options to choose from financial protection against medical emergencies, specific illnesses, out-patient visits and even third-party liabilities, ensuring pets receive the care they deserve without placing undue financial strain on their owners. PET ASSURE offers a range of flexible sum insured options, starting at ₹10,000 and going up to ₹2,00,000, with policy tenures ranging from one to three years. This plan is available for pet dogs and cats aged between 3 months and 10 years, offering comprehensive coverage that can be tailored to their needs. USGI PET ASSURE product offers extensive protection across a wide spectrum of health and wellness needs. Optional coverage includes expenses for terminal diseases, surgeries, long-term care, OPD consultations, and pregnancy-related complications. It also addresses insect or vector-borne diseases, recovery care, and dental treatments. Beyond medical care, the policy has options to cover costs due to loss or theft of pets, third-party liability, emergency pet minding, loss of tag cover, loss of show entry fees, road ambulance services and lastly cremation costs too, ensuring peace of mind for pet parents through every stage of their pet’s life.

I am pleased to share that the reception has been positive. The uptake continues to grow steadily, reflecting both our offering and the trust that our customers place in us.

How do you see the pet insurance segment evolving in India over the next few years?

As mentioned earlier, the uptake of out Pet Assure product continues to grow steadily. We foresee this offering evolving in the future to meet more diverse and specific needs of Pet owners across the country. Our vision is to position Universal Sompo General Insurance as a household name that resonates deeply with every individual’s all insurance needs from personal lines to commercial lines of business; a one stop solution for all their insurance needs! We are committed to innovation, customer centricity and trust through our diverse range of products and services.

What emerging trends are shaping the future of both pet?

We are witnessing an evolution in the way people are caring from their pets. These areas we are seeing a significant change

Pet parents want the best for their furry babies, and hence the adoption of GPS tags and a focus on right nutrition are trends we're observing. Regular visits to veterinary doctors for understanding and providing long-term, health-based care are a given norm today. Many of the pet parents are focused today on not just special diets for their pets but also reflecting on deeper level to understand their pets overall physiological needs.

Today, pet parents take pride in how well they can groom their pet babies. It's not just about one-off spa or parlour outings; these services are very much a part of the parents' regular routine. In metros like Delhi, Mumbai, and Bangalore, we see an increasing trend of specialized pet services, often at a premium cost. Treating pets as part of the family and ensuring they reflect a style and fashion statement like their pet parents, is a trend that boosts many service providers in this sector.

Undeniably, social media thrives on pet content. A study by In-Beat, a digital marketing agency, on various types of content on Instagram highlighted that the Instagram platform alone hosts around 2 million pet accounts, amassing approximately 40 million followers. This trend reflects pet parents' pride in showcasing their pets' content on social media. A well-cared-for pet has become a symbol of responsible ownership and a testament to the owner's values and priorities."

EoM.