Case Study
How EmbedSure Supports the BFSI Industry with Embedded Insurance Solutions
Client: Leading BFSI (Banking, Financial Services, and Insurance) Institution
Industry: BFSI (Banking, Financial Services, and Insurance)
Service Provider: EmbedSure – Embedded Insurance Solutions
process
Background
The BFSI industry, consisting of banking, financial services, and insurance, is critical to economic stability and growth. However, this industry faces constant challenges such as credit risk, customer defaults, and the need to provide enhanced financial protection to customers. With increasing customer demand for financial security, BFSI institutions are exploring ways to integrate insurance solutions into their existing products, offering a complete financial safety net to customers. This case study explores how EmbedSure’s Embedded Insurance Solutions helped a leading BFSI institution reduce financial risk, enhance customer experience, and drive long-term customer loyalty by integrating insurance into their banking and lending services.
Challenges Faced by the BFSI Industry
Credit and Loan Default Risks: Many financial institutions face the risk of loan defaults due to unforeseen life events such as job loss, illness, or accidents. These events increase the risk of non-performing assets (NPAs), impacting the institution's profitability and balance sheet.
Increasing Customer Expectations for Financial Security: Customers are becoming more aware of the need for financial security in uncertain times, seeking comprehensive protection with financial products like loans, savings, and investments. Financial institutions need to offer more than just traditional banking products to stay competitive.
Operational Complexity in Managing Insurance Products: BFSI institutions often struggle to integrate third-party insurance services into their existing systems, leading to operational inefficiencies and delays in claims processing, which negatively affect customer satisfaction.
Competition and Customer Retention: In the highly competitive BFSI space, institutions need to differentiate themselves by offering value-added services that can help retain customers and increase loyalty.
The Solution: EmbedSure’s Embedded Insurance for BFSI
EmbedSure partnered with the BFSI institution to integrate tailored Embedded Insurance Solutions directly into their financial products, such as loans, credit cards, and savings schemes. These solutions helped mitigate risks for both the institution and its customers while adding value to the financial offerings.
Loan-Credit Life Insurance: Provides coverage for outstanding loan balances in the event of a borrower’s death, ensuring the loan is paid off without burdening the borrower’s family or increasing the institution’s NPAs.
Loss of Job Insurance: Offers temporary financial support to borrowers in the event of job loss due to layoffs or economic downturns, covering EMI payments and reducing the risk of loan defaults.
Critical Illness Insurance: Coverage for borrowers diagnosed with critical illnesses, such as cancer, heart disease, or stroke, providing financial support for medical expenses and reducing the risk of default on loans or credit payments.
EMI Protect Insurance: Ensures that borrowers can continue making EMI payments in case of temporary loss of income due to illness, injury, or hospitalization, offering financial protection to both the borrower and the institution.
Credit Card Insurance: Provides protection for credit cardholders in case of fraudulent transactions, loss of income, or health issues, covering outstanding balances and reducing default risks.
Savings Protection Insurance: Bundled with savings and investment products, this insurance offers coverage against unforeseen life events, ensuring that customers’ savings and financial plans remain intact even during difficult times.
Implementation
Seamless Integration into Banking and Loan Systems: EmbedSure’s API-driven platform was integrated into the institution’s existing banking and loan management systems, enabling the automatic bundling of insurance with financial products like loans, credit cards, and savings accounts.
Customizable Insurance Solutions: EmbedSure worked with the institution to tailor insurance offerings based on product type, customer profile, and risk factors. Customers could easily opt for coverage when signing up for loans, credit cards, or savings products.
Digital Claims Process: The claims process was fully digitized, enabling customers to file and track claims online through the institution’s app or website. This significantly improved the speed of claims processing and reduced operational overhead for the institution.
Customer Education and Awareness Campaigns: EmbedSure and the BFSI institution collaborated on educational campaigns to raise customer awareness about the importance of embedded insurance, driving higher adoption rates and increasing customer satisfaction.
Results
Reduced Loan Defaults and Improved Asset Quality: The embedded insurance solutions helped protect the institution from significant financial losses due to loan defaults. Borrowers who faced job loss, illness, or accidents were able to claim insurance benefits, reducing NPAs by 15% within the first year.
Enhanced Customer Trust and Loyalty: Customers valued the additional financial security provided by the insurance products, leading to a 20% increase in customer retention. The institution also saw an increase in cross-selling opportunities as customers bundled insurance with loans, credit cards, and savings products.
Increased Loan and Credit Card Uptake: The institution experienced a 30% increase in loan and credit card applications as borrowers were more confident in their ability to manage loans with the added protection of embedded insurance.
Operational Efficiency through Digital Claims: The streamlined digital claims process resulted in 40% faster claim settlements, improving customer satisfaction and reducing administrative costs for the institution.
Competitive Differentiation: By embedding insurance solutions into their products, the BFSI institution was able to stand out in a crowded market, offering a comprehensive financial protection package that appealed to both existing customers and new clients.
Key Solutions for Gadgets and Appliances
Accidental Damage, Loss, and Theft (ADLD) Insurance
EmbedSure’s ADLD Insurance offers protection against the unexpected for valuable gadgets like smartphones, tablets, laptops, and home appliances. Whether it’s accidental damage, loss, or theft, ADLD insurance ensures that customers are covered for repair or replacement costs.
Coverage for accidental drops, water damage, and other unforeseen incidents.
Protection against theft or loss of gadgets.
Quick repair or replacement service for insured devices.
Flexibility to cover a wide range of devices, including smartphones, laptops, and home appliances.
Extended Warranty (EW)
With gadgets and appliances, repairs can become costly once the manufacturer's warranty expires. EmbedSure’s Extended Warranty (EW) extends the protection period, covering the repair or replacement of devices due to mechanical or electrical failures beyond the standard warranty period.
Coverage for repair or replacement due to mechanical or electrical breakdowns after the manufacturer’s warranty expires.
Flexible plans tailored to different gadget types and appliance categories.
Access to authorized service centers for high-quality repairs.
Hassle-free claims process with fast settlements.
Key Benefits
EmbedSure’s Embedded Insurance for the BFSI Industry
1. Risk Mitigation for Financial Products:
Embedded insurance solutions reduce the financial risk of loan defaults, credit card delinquencies, and savings disruptions by providing coverage for unexpected life events.
2. Improved Customer Confidence and Loyalty
Customers feel more secure knowing their financial obligations are protected, leading to higher retention rates and increased trust in the institution.
3. Seamless Digital Integration
EmbedSure’s API-driven platform integrates easily into existing BFSI systems, allowing institutions to offer insurance products without operational disruption or delays.
4. Faster Claims Processing:
The digital claims platform ensures faster settlements, reducing customer dissatisfaction and improving the overall experience.
5. Increased Revenue Streams:
Embedded insurance solutions provide BFSI institutions with additional revenue opportunities through premium-based insurance products bundled with their financial offerings.
Conclusion
Conclusion
By partnering with EmbedSure, the BFSI institution successfully enhanced its risk management capabilities, reduced loan defaults, and improved customer satisfaction. The embedded insurance solutions offered peace of mind to customers and provided the institution with a competitive advantage in the market.
Looking to mitigate risk and enhance your BFSI offerings?
Contact EmbedSure today to learn how our embedded insurance solutions can support your banking, financial services, and insurance business.
Looking to mitigate risk and enhance your BFSI offerings?
Contact EmbedSure today to learn how our embedded insurance solutions can support your banking, financial services, and insurance business.
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Testimonials
Those who trust us
Getting the policy was quick and easy, and the staff was ready to answer all my questions. In the event of a claim, the company offered prompt support, and the claims process was smooth.
Emmy Elsner
Testimonials
Those who trust us
Getting the policy was quick and easy, and the staff was ready to answer all my questions. In the event of a claim, the company offered prompt support, and the claims process was smooth.
Loni Bowcher
Testimonials
Those who trust us
Getting the policy was quick and easy, and the staff was ready to answer all my questions. In the event of a claim, the company offered prompt support, and the claims process was smooth.
Erika Mateo
FAQ
Frequently asked questions
How do I file a claim?
Visit our online portal or contact our customer service to initiate the claims process. We’re here to guide you through every step.
What types of insurance do you offer?
We provide a range of insurance solutions, including home, auto, health, and more. Explore our offerings to find the coverage that suits your needs. Pulvinar pellentesque habitant morbi tristique.
How can I modify my policy?
To make changes to your policy, contact our customer service team. They will assist you in updating your coverage to align with your evolving needs.
What factors influence insurance premiums?
Several factors impact insurance premiums, such as your coverage amount, deductible, and personal circumstances. Our team can help you understand and manage these factors.
Questions?
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