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Embedded insurance orchestration: the modular insurance fabric to fuel business growth

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Embedded insurance orchestration: the modular insurance fabric to fuel business growth

Thursday 6 october 1:00 PM CEST
Hosted by Parker Crockford
Chief Commercial Officer - Qover
Atul Chaudrie
Chief Commercial Officer
Timm Schipporeit
Partner
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Embedded insurance for a booming neobank

FinTech companies have seen explosive growth over the past decade, attracting millions of users who benefit from innovative financial services. One such FinTech is UK neobank Revolut, which has risen from a challenger bank to a super app in the making by offering a variety of financial services to users around the globe. 

As the industry becomes increasingly mature, FinTechs must implement new strategies to remain competitive, especially in the current landscape. Driven by the pandemic, consumer expectations and needs have been pushed deeper into the digital realm – faster than ever before – opening up huge opportunities for FinTechs to position their products and services on the market. 

FinTechs must constantly reinvent themselves amid daunting challenges: attracting new customers, converting free user bases into paid subscribers, boosting transactions and generating additional revenue, all while completing their innovation cycles.

Embedded insurance can play a major role in expanding revenue engines and customer acquisition strategies. The key is taking a global approach and building an environment that will stimulate users to adopt new consumer behaviours.

Yet, we often see key FinTech players offering insurance products that bring poor added value to their users.

‘Embedded insurance allows customers to have a product and coverage before they know they’re at risk. This enables Revolut to fully protect some of our customers’ financial losses as part of our financial super app proposition and support them when they’re most in need. This will become the trend for FinTech companies, as InsurTech providers continue to iterate on the ease of their offerings, and will likely become the gold standard for FinTechs.’

Balázs Gáti – Global Head of Insurance at Revolut

'The Revolut-Qover partnership is a powerful combination. Qover’s understanding of the complex needs of a full-growth FinTech, its deep insurance and technology expertise, and its agile and collaborative approach are uniquely complementary to how we work at Revolut. Qover is one of the only players capable of providing us with a global solution.'

Nikolay Storonsky – Revolut CEO & Co-founder

Three purchase products for Revolut subscribers

As Revolut set out to completely overhaul its subscription plans in 2020, it turned to us at Qover.

In order to provide the best user experience for its customers, the neobank wanted a partner capable of offering innovative insurance solutions across multiple European countries through a single technical integration – an impossible mission for a traditional insurance company, but an exciting, natural project for Qover.

During the call for tenders, Qover’s unique solutions, along with its ability to meet the needs of a growing FinTech tipped the scales in our favour.

Sharing a high-tech, disruptive DNA with Revolut, our team has developed an expertise and understanding of the key drivers that can unlock value for neobanks and similar high-growth businesses.

According to Balázs Gáti, Revolut’s Global Head of Insurance, Qover offered ‘agile ways of working (i.e., moving fast and designing flexible solutions), orchestrating between multiple carriers to find the right balance in capacity provision and bringing Pan-European solutions to life.’

From the outset, the project vision was crystal clear: insurance must support Revolut's customers in their everyday lives, and be easy to access and user-friendly.

We worked together with Revolut to develop customised insurance products that would give users the security and flexibility they need, while driving the neobank’s user acquisition and retention strategies – all while maintaining a seamless user experience. Each detail of the user flow was meticulously designed to meet the needs of Revolut’s digital-native customers.

The insurance solution is fully integrated into the banking app, meaning that users with ‘Plus’, ‘Premium’ and ‘Metal’ accounts are automatically covered by three types of cover: purchase protection, refund protection and ticket cancellation.

Customers are protected against theft and accidental damage on all purchases made with their Revolut card, and can receive refunds for hard-to-return items and tickets to events they can no longer attend.

Embedding insurance into user plans means that there’s less burden and cost on the end user, while acting as a powerful incentive for customers to use their Revolut accounts more often.

If Revolut clients want to learn more about their coverage, they can head to the app’s ‘Insurance’ tab to browse their policy details and legal documents.

Added value and speedy claims handling

By integrating insurance products into its strategy, Revolut creates value for their customers and their business.

‘If you’re a Revolut customer, the next time you buy a phone, will you use your regular bank card or your Revolut card? Most likely you’ll use Revolut to get the built-in protection, which pushes you to use them for more transactions,’ Quentin told Sifted. ‘Before you know it, Revolut is becoming your primary bank.’

This type of product also fuels Revolut’s super app ambitions, or becoming an all-in-one platform for financial services.

‘Partnering with Qover has taken the difficulties of working with 32 countries and multiple insurers away from Revolut – managing all policy development, translations, claims handling and getting the right insurers lined up for our products based on their diverse appetites,’ says Balázs, in a recent Sifted article on how embedded insurance is shaping the future of FinTech.

Product exploration and business development are key to the Revolut-Qover partnership; it continues to evolve as we listen to Revolut user feedback, monitor results and prioritise innovation.

In 2022, Qover worked to further improve the claims process by insourcing Revolut claims through our multilingual customer care team. By no longer relying on a third party administrator to handle cases, the process can be more streamlined – and ultimately speedier – for Revolut customers.

‘My sincere thank you for the blazing fast handling of the claim! It is so reassuring to be able to have full confidence in one’s insurance partner!’ - Revolut customer

‘Qover provides easy accessibility to the claim system with full transparency. No hassle like the usual insurance claim system.’ - Revolut customer

‘The claims management department was attentive, they answered me with every piece of information and it was very quick – via e-mail or telephone. Many thanks to the Qover team.’ - Revolut customer

Qover’s embedded insurance solutions benefit millions of Revolut users, and could serve as inspiration for companies across the FinTech sector.

‘Embedded insurance allows customers to have a product and coverage before they know they’re at risk,’ Balázs says. ‘This enables Revolut to fully protect some of our customers’ financial losses as part of our financial super app proposition and support them when they’re most in need.’

‘This will become the trend for FinTech companies, as InsurTech providers continue to iterate on the ease of their offerings, and will likely become the gold standard for FinTechs.’

'I would estimate that this relationship has cut our insurance build from more than three months to just six weeks…and contributes directly to the revenue growth from the subscriptions ... We are working on continual coverage improvements and enhancements, with the next set rolling out in Q4 [of 2022].'

Balázs Gáti – Global Head of Insurance at Revolut

Related solutions

Blog post

Embedded insurance supporting Revolut clients in their everyday lives

Industry
FinTech & financial services
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Time to read
Last updated
November 10, 2022
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