Intelligent Issue 07 | Page 41

INDUSTRY OUTLOOK significant additional value , but it also enables the provider to increase revenue .

What differentiates embedded insurance from other products is that it creates a relevant offering for customers when and where they need it most . It is not a reactive purchase or something that requires the customer to search for an affordable insurance solution to fit the requirements of the product purchased .
40 % of customers who pay with crypto are new and their purchase amounts are twice those of credit card users .
Overcoming the protection gap
Beyond the market opportunities for embedded insurance , the widening protection gap has played a significant part in making this an attractive option for insurers . From 2000 to 2020 , this gap has doubled largely due to digitisation , urbanisation , climate change and a lack of effective innovation .
Pre-pandemic , the average South African income earner had a combined life and disability cover shortfall of at least R2.2 million . This translates to a total insurance gap of R34.7 trillion for South Africa ’ s 15.6 million earners .
Embedded insurance is a great way to help reduce this gap by offering insurance at the proverbial point of sale . In this way , a consumer can get immediate coverage for the high-value goods purchased .
Part of the process
Consumers can even use mobile banking or medical aid apps to purchase embedded insurance . It comes down to creating an integrated process which the www . intelligentfin . tech