According to GlobalData’s 2023 UK Insurance Consumer Survey, 32.5% of motor insurance customers said they would be willing to buy insurance directly from car manufacturers. This highlights the potential of embedded insurance, which enables businesses to easily combine insurance products with third-party goods. Insurtech Qover is looking to take advantage of this opportunity by introducing its motor insurance solution in the UK. With this move, car manufacturers can now offer digital insurance programs to customers looking for more convenient insurance experiences.
32.5% of motor insurance consumers stated that they would consider buying insurance from a car manufacturer while 17.7% would consider purchasing a policy from a car leasing company. These results highlight the opportunity for embedded insurance in the UK. However, as per GlobalData’s 2023 UK Insurance Consumer Survey, 69.2% of motor consumers visited a price comparison website (PCW) prior to purchase. This strong usage of PCWs shows consumers’ desire to find the best deal amid the ongoing cost-of-living crisis, making it harder to sell one policy at the point of sale without comparing it to others. Therefore, insurance companies entering the embedded insurance space need to figure out how to highlight both value and price in a market where customers are always looking for the best deals.
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One of the many phases in Qover’s expansion strategy is its entry into the UK market, following successful launches in several European countries. Designed with car manufacturers, original equipment manufacturers, and mobility companies in mind, its motor insurance solution offers customisable coverage that caters to these companies’ unique requirements. Essentially, Qover provides a digital system enabling firms to offer and manage insurance for their customers.
With so many consumers willing to buy cover directly from manufacturers, insurers should take advantage of this trend by expanding their distribution strategy to sell policies via car manufacturers and other mobility companies. Although PCWs are still widely used in the UK, Qover’s success shows how appealing embedded insurance can be. Yet it will be crucial for insurers to highlight competitive pricing and high-quality coverage if they hope to collaborate with companies to offer embedded insurance.
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