Growing demand for supplementary insurance

Rostock, 15 August 2023 - Customer behaviour has changed significantly in recent years. Whether smartphones, e-bike, washing machines or sports equipment - more and more products are being bought online, optionally with a suitable insurance policy. The Rostock-based InsurTech hepster gets to the bottom of this trend: a survey with 1,792 participants shows how insurance has developed as an additional offer and its acceptance and relevance in purchasing behaviour.

The study "Europe Embedded Insurance Business and Invest Opportunities" forecasts annual growth of 19 per cent and revenues of over 28.5 billion US dollars for the integrated insurance market alone until 2029. The United Kingdom, Germany and France in particular are contributing to this upswing.

Almost all customers notice integrated insurance - many are signing up.

This embedded insurance upswing is already noticeable in the hepster study because:

• 92 per cent of respondents have already actively taken advantage of the offer of additional insurance when buying online.
• 53 per cent of the participants have already taken out additional insurance.

The take-out of additional insurance depends on the product - insurance is in demand for these products:

• The front-runners are smartphones/mobile phones: One in five has purchased insurance for these products directly at the time of purchase.
• Laptop/notebook and (e-)bikes follow in second place, with 15 per cent opting for these. Travel insurance - the classic of supplementary insurances - on the other hand, was only taken out by 12 per cent of those surveyed, just as often as camera insurance.
• Basically, two-thirds of the respondents find insurance for travel and (e-)bikes important, followed by smartphones with just under 58 per cent.
• 34.4 per cent of the participants consider insurance for household electronics (washing machines) and luxury items (handbags, watches, jewellery) important.

In addition:  

• Two-thirds of the participants stated that their need for embedded insurance has increased in the last two years, 27 per cent even "strongly" and 10 per cent "very strongly".  
• More than half of the participants, namely almost 55 per cent, consider insurance important for a purchase price of 500 euros or more. Another 41 per cent consider it from 1,000 euros.
  

Supplementary insurance is an integral part of the customer experience

Integrated insurances are experiencing a triumphant advance: Consumers increasingly ask for them and often actively look for corresponding offers (37 per cent of participants). This is proof of how offering supplementary insurance pays off for the providers of products and services. In the meantime, they have become an integral part of the customer experience, which most consumers expect as part of their web presence or at the point of sale.

Hanna Bachmann, CRO and co-founder of hepster, draws the following conclusion:

"We are certain that in the medium term, hardly any customers will actively think about insurance and taking out insurance, but that the coming generations will be used to their financial products also being just as digital, convenient and tailored to their needs as all other consumer goods."