As the momentum for "embedded insurance" has built in recent years, I assumed it would mark yet another attempt to cut agents and brokers out of the sales process. So I was intrigued when, in this month's interview, the director of agency accounts at Clearcover suggested embedded insurance could actually mark an opportunity for agents and brokers.
Clearcover's Kaitlyn Taylor said that the insurtech is working to help agents and brokers remain part of the process even if someone who is, say, buying a car is prompted to purchase auto insurance while at a dealership. The buyer could be presented with a QR code, for instance, that would steer the insurance purchase through an agent, or some other link could be provided.
Lots of details remain to be worked out, so the customer could both get the convenience of buying insurance while it is top of mind, without having to reenter all sorts of personal and financial information, and get the comfort of dealing with an agent on any questions, both during the sales process and during the relationship that follows. Commissions will, of course, have to be resolved, too, based on who gets credit for initiating the sale and who services the customer and policy from then on.
So, Taylor cautioned that the work at Clearcover is in its very early stages. Still, I found the notion intriguing.
People keep trying to disintermediate agents and brokers... and keep failing.
P.S. Here are the six articles I'd like to highlight this month for agents and brokers:
You are passing up maybe $1,000 in commissions per client if you aren't cross-selling instant-issue term life insurance policies that don't require a medical checkup.
While insurtechs are struggling, established brokerages have deep industry knowledge and solid businesses from which to build and evolve technology solutions.
Stressed employees are less engaged and have lower productivity - and some may even left their job. Here is how to promote a low-stress work environment.
Customer loyalty, and thus retention and profitability, isn’t driven by cheap prices, AI bots, big data or nifty phone apps.
Distribution partners are focused on two key areas – user experience and ease of doing business – and are looking to work with insurers.
Insurers seem stuck in traditional channels rather than expanding channel choice and reach, meeting customers where and when they want.