Brokers as drivers of innovation: embedded insurance and the future of insurance

What you can expect:

1. Brokers and agents as part of the value chain
2. Comparison portals as digital brokers
3. Brokers in the embedded insurance sector
4. Exclusive products for brokers
5. Extended range of services through protection policies
6. Conclusion

1. Brokers and agents as part of the value chain

Brokers and agents are an important part of the value chain in the insurance market. They are, so to speak, the interface between insurers and end customers. Their importance has increased in recent years. In 2019, 35% of new insurance policies were taken out through brokers, and by 2022 this figure had risen to 39% (source).

Brokers are no longer just agents for standard insurance policies. They are taking on increasingly complex tasks. In this article, we will look at the different types of brokers – from traditional insurance brokers to brokers specialising in embedded insurance.

2. Comparison portals as digital brokers

Brokers and agents are basically the interface between insurers and end customers. In the increasingly digital insurance landscape, comparison portals are playing an ever greater role. Customers can easily compare different insurance policies on the portals and take out policies directly online. Without direct contact with a human agent, these portals effectively take on the role of a digital broker.

Portals such as the hepster partners Check24, Covomo and Mr. Money help to find suitable offers. For these digital brokers, hepster offers a wide range of competitive products. Our portfolio includes not only bicycle and e-bike insurance, but also insurance for pets, travel, electronic devices or personal liability insurance. These products are regularly updated and adapted to market changes to ensure that portal customers always receive the best protection.

This means that portals can offer their users insurance for a wide range of areas and still ensure that they can always choose the best offers. The hepster insurance products are designed to be able to compete in many different markets. Our work with comparison portals shows that we are much more than a niche insurer.

3. Brokers in the embedded insurance sector

In the modern insurance landscape, brokers who sell embedded insurance to their partners are becoming increasingly important. Embedded insurance means that insurance is built directly into a company's products and services. There is also the option of an optional insurance policy, also known as an annex insurance.

For example, in an online shop, you can book the right insurance policy when you make your purchase. This means that customers do not have to go through a second customer journey to take out insurance.

One example of optional integration or annex insurance is the collaboration between hepster and notebooksbilliger.de. In this case, hepster has developed a specially designed insurance solution under the white label NBB Care Plus. For example, if customers buy a new laptop, they have the option of insuring it directly. The insurance is integrated into the purchase process and offers customers immediate protection for their new electronic products – without having to leave the NBB website.

Another example of fully integrated insurance is the hepster partnership with FOBE, a subscription-based luxury handbag rental company. The handbags are automatically insured by hepster when the contract is signed. The insurance is therefore embedded in the main product and is provided to customers without any additional effort. In the case of FOBE, this means additional protection and less stress when enjoying the new bag.

Embedded insurance offers brokers and agents the opportunity to expand their offering and provide their customers with real added value. Brokers can now offer their customers customised insurance products by integrating insurance directly into digital processes such as buying a new bike or signing a rental agreement.

By working with an insurer specialising in embedded insurance, brokers can benefit from existing ecosystems. While brokers can focus on the insurance specifications, the insurance partner takes care of product coordination with the risk carriers, prices, support and claims reporting. With hepster, both optional integration into the purchase process and standard integration into a purchase, rental or leasing contract are possible.

4. Exclusive products for brokers

Working with specialised insurers offers brokers in the embedded insurance sector a wealth of advantages. One major advantage is the flexibility in the development of insurance products. Through direct contact with their customers, brokers can optimally determine needs and requirements. For example, if a company in the rental sector is frequently confronted with embezzlement, embezzlement protection can be included in the insurance contract.

With the right insurer at your side, you can sell exclusive products that are offered under the name of the broker or the respective platform, such as NBB Care Plus. These so-called white-label solutions strengthen the brand of the broker or platform and at the same time offer the end customer a high level of recognition and trust.

At hepster, brokers generally benefit from maximum flexibility in product creation. The fact that hepster works with 11 risk carriers means that a wide range of products is offered, which at the same time ensures an optimal balance between price and performance. These products bring real competitive advantages and open up new business opportunities.

5. Extended range of products through insurance cover

hepster also offers a wide range of attractive products for brokers who are not active in the traditional areas of property or personal liability insurance. Our 3-in-1 cover note is particularly noteworthy, as it can be integrated into existing insurance solutions and offers additional protection for various areas of life. The package includes a home and apartment cover note, a travel cover note and a motor vehicle cover note.

The home and apartment insurance policy is a great addition to traditional household insurance and provides cover in many emergencies. Whether the key has broken off or a pipe bursts on a public holiday – with this insurance policy, your customers will receive help quickly and easily, without having to worry about the costs.

The motorist's insurance policy is a great option for anyone who travels a lot. It is a low-cost alternative to membership of a motoring organisation and offers services such as breakdown and accident assistance, onward and return travel services and more. The best thing about it is that the cover applies not only to your own car, but also to any vehicles you may be borrowing.

For those who travel regularly or simply want to play it safe, the travel insurance policy from hepster offers the best possible protection. Whether it's a delayed departure, an early return or other unforeseen events – this insurance policy ensures that your customers are financially secure and can enjoy their travels without a care.

Another advantage: the terms of the insurance policies are flexible and range from short-term cover for a few days to comprehensive protection for a whole year. This means that brokers can tailor the insurance policies to the individual needs of their customers.

Conclusion

In the modern insurance landscape, brokers and agents play an indispensable role in the value chain. Whether they are traditional insurance brokers or specialised brokers who focus on embedded insurance for partner companies, the variety and flexibility of the products offered are crucial to their success.

By catering to the specific needs of these different target groups and offering innovative insurance solutions, we not only strengthen the position of brokers, but also help to ensure that customers are comprehensively covered. The path to successful collaboration lies in the flexibility and adaptability that enables us to offer both traditional and customised products.

Brokers will continue to play an important role in the future, especially when it comes to complex insurance products that require a high level of advice. Those who rise to the new challenges and seize the opportunities offered by digital transformation will be successful. In this context, close collaboration with innovative insurers is a decisive factor for success.